What Happened?
Shares of healthcare distributor and services company McKesson (NYSE: MCK) jumped 6.6% in the morning session after the company raised its profit forecast for fiscal 2026 and boosted its long-term growth targets during its 2025 Investor Day.
During the event, McKesson's leaders unveiled a higher forecast for Fiscal 2026 adjusted earnings per share, setting a new range of $38.05 to $38.55. This new target topped the prior range and also surpassed market estimates. The company also showed more confidence in its future, increasing its long-term adjusted earnings growth goal to a range of 13% to 16%, up from 12% to 14%. Management pointed to the strength of its platforms in high-value areas like oncology and biopharma solutions as key drivers for this improved outlook. The move suggested a clear strategy to focus on more profitable parts of its business.
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What Is The Market Telling Us
McKesson’s shares are not very volatile and have only had 3 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.
The previous big move we wrote about was 12 days ago when the stock gained 2.7% as the company inked a deal with Walmart and USAntibiotics, the nation's only manufacturer of amoxicillin. Under the agreement, McKesson will serve as the national distributor for the U.S.-made antibiotic, which recently faced shortages. USAntibiotics expects to produce enough amoxicillin to meet 100% of the nation's demand. This deal positions McKesson at the center of a critical domestic supply chain.
McKesson is up 31.6% since the beginning of the year, and at $745.34 per share, has set a new 52-week high. Investors who bought $1,000 worth of McKesson’s shares 5 years ago would now be looking at an investment worth $5,067.
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