At a glance
McKesson Corporation is worth $116.40B, about 26 times its fiscal 2026 earnings. Revenue grew 12.4% to $403.43B in fiscal 2026, with 1.2% kept as profit; over 5 years it has grown 11.1% a year. It pays a 0.34% dividend yield, raised every year for at least 9 years, and returned $19.68B to shareholders in dividends and buybacks over FY2022–FY2026. The stock returned +23.5% over the past year with dividends reinvested and +36.2% a year over five years, against +11.5% and +11.7% for the S&P 500. At its worst it fell 32.1% in the 2020 crash (S&P 500: 33.7%) and 10.5% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 8 months and 1 month after the lows.
The business in plain English
McKesson is mainly a drug wholesaler, a middleman between drugmakers and the places that dispense medicine. It purchases branded, generic, specialty and over-the-counter drugs and delivers them to pharmacies, hospitals and clinics in the US and Canada. In the US it runs 27 distribution centers. They serve national pharmacy chains, mail-order pharmacies, independent drugstores and hospitals. It also operates Health Mart, a franchise network of about 3,900 independently owned pharmacies. It sources generic drugs through ClarusONE, a joint venture with Walmart.
The business runs on huge volume and very thin margins. In the fiscal year ended March 31, 2026, revenue was $403.4 billion. Gross margin (sales minus the cost of the products sold, as a share of sales) was just 3.6%. Net income was $4.76 billion, or 1.2% of sales.
North American Pharmaceutical, the wholesale business described above, produced 83.4% of that revenue. Oncology & Multispecialty, at 12%, distributes specialty drugs and supports the US Oncology Network of community cancer practices. Medical-Surgical Solutions (2.9%) supplies doctors' offices, surgery centers and nursing homes, and McKesson plans to separate it into an independent company. Prescription Technology Solutions (1.4%) offers services such as electronic prior authorization, the insurer approval some prescriptions need. McKesson sold its Norway business during fiscal 2026.
Price history
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MCK +23.5% over the year to Nov 2, 2026, total return with dividends reinvested.
How it makes money
By business segment
| North American Pharmaceutical | $336.65B | 83.4% |
| Oncology & Multispecialty | $48.42B | 12% |
| Medical-Surgical Solutions | $11.51B | 2.9% |
| Prescription Technology Solutions | $5.80B | 1.4% |
Latest results
- In Q1 FY2027 (ended Jun 30, 2026), revenue was $105.38B, up 7.7% from a year earlier, and net income was $614.0M (-21.7%).
- For fiscal 2026, revenue was $403.43B (+12.4% year over year; +11.1% a year from FY2021 to FY2026) with a 1.2% net margin.
Financial health check
| Revenue growth a year (FY2021–FY2026) | +11.1% good |
|---|---|
| Operating margin | 1.5% weak |
| Free cash flow margin | 1.4% watch |
| Return on assets (FY2026) | 5.8% watch |
| Net cash (cash minus debt) | $-4.57B watch |
| Fiscal year | Revenue | Net income | Free cash flow |
|---|---|---|---|
| FY2021 | $238.23B | $-4.54B | $4.09B |
| FY2022 | $263.97B | $1.11B | $4.05B |
| FY2023 | $276.71B | $3.56B | $4.77B |
| FY2024 | $308.95B | $3.00B | $3.88B |
| FY2025 | $359.05B | $3.29B | $5.55B |
| FY2026 | $403.43B | $4.76B | $5.72B |
Valuation snapshot
| Market value | $116.40B |
|---|---|
| P/E ratio | 26 |
| Dividend yield | 0.34% |
Rank among 1514 US companies
Market value at each year end
McKesson’s market value went from $31.75B at the end of 2016 to $116.40B on Nov 2, 2026, about 3.7 times as much; since the end of 2025 it is up 15%.
Show as a table
| Year end | Market value | Change |
|---|---|---|
| Nov 2, 2026 | $116.40B | +15.0% |
| 2025 | $101.25B | +39.9% |
| 2024 | $72.34B | +17.4% |
| 2023 | $61.61B | +15.8% |
| 2022 | $53.19B | +42.8% |
| 2021 | $37.24B | +34.5% |
| 2020 | $27.68B | +13.1% |
| 2019 | $24.47B | +15.5% |
| 2018 | $21.19B | -34.8% |
| 2017 | $32.51B | +2.4% |
| 2016 | $31.75B |
Price behavior
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | |
|---|---|---|---|---|---|
| MCK price data to Nov 2, 2026 | +22.1% | +23.5% | +31.2% | +36.2% | +23.0% |
Show as a table
| Year | Price data |
|---|---|
| 2026 (to date) | +22.1% |
| 2025 | +44.5% |
| 2024 | +23.7% |
| 2023 | +24.1% |
| 2022 | +51.8% |
| 2021 | +44.2% |
| 2020 | +27.1% |
| 2019 | +26.7% |
| 2018 | -28.4% |
| 2017 | +11.9% |
| 2016 | -28.3% |
| 2015 | -4.5% |
| 2014 | +29.3% |
| 2013 | +67.7% |
| 2012 | +25.6% |
| 2011 | +11.8% |
| 2010 | +13.8% |
| 2009 | +63.0% |
| 2008 | -40.4% |
| 2007 | +29.7% |
| 2006 | -1.3% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Lost 34.2% over that stretch · deepest drop along the way 57.7%, back to its old high 16.3 months after the low |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Lost 30.9% over that stretch · deepest drop along the way 32.1%, back to its old high 7.5 months after the low |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Gained 39.9% over that stretch · deepest drop along the way 10.5%, back to its old high 1.2 months after the low |
Insider activity
Form 4 filings from 2025-10-27 to 2026-10-27 (25 read): 0 open-market purchases and 11 sales ($22.9M), 10 of them under pre-arranged 10b5-1 trading plans.
| Date | Insider | Type | Value |
|---|---|---|---|
| Jul 7, 2026 | Brian S. Tyler Chief Executive Officer, Director | sell (plan) | $6.7M |
| Jun 17, 2026 | Brian S. Tyler Chief Executive Officer, Director | sell (plan) | $6.6M |
| Jun 9, 2026 | Brian S. Tyler Chief Executive Officer, Director | sell (plan) | $3.8M |
| May 26, 2026 | Michele Lau EVP and Chief Legal Officer | sell (plan) | $2.7M |
| Jun 1, 2026 | LeAnn B Smith EVP & Chief HR Officer | sell (plan) | $1.3M |
Who owns it
Large shareholders (13G filings)
| Vanguard Capital Management | 7.49% | Mar 31, 2026 |
| BlackRock, Inc. | 7.3% | Mar 31, 2025 |
ETFs with the most weight in MCK
| EGGQ NestYield Visionary ETF | 5.69% |
| ATFV Alger 35 ETF | 5.21% |
| PPH VanEck Pharmaceutical ETF | 5.18% |
| RTH VanEck Retail ETF | 4.86% |
| WBIF WBI BullBear Value 3000 ETF | 4.73% |
| USSE Segall Bryant & Hamill Select Equity ETF | 4.33% |
| FXG First Trust Consumer Staples AlphaDEX Fund | 4.28% |
| TXS Texas Capital Texas Equity Index ETF | 4.2% |
What could go wrong
- Opioid lawsuits and consent decrees. McKesson faces many lawsuits from states, counties, cities and others over its opioid distribution. Cases can take years to resolve, and state court consent decrees (court orders agreed to in settlements) govern its controlled-substance shipments.
- Losing permission to handle drugs. The business depends on government approval to purchase, store and distribute medicines, including controlled substances like opioids. Losing that ability, or facing higher costs to comply with changing rules, would hit the company hard.
- Medical-Surgical separation may not go to plan. Making Medical-Surgical Solutions an independent company depends on conditions being met. It could be delayed, done on different terms, or dropped, and may not deliver the expected benefits. Apollo's planned stake also needs regulatory approval.
- Thin margins leave little room for error. Only 1.2% of sales became net profit in fiscal 2026. Smaller orders, lost contracts, customer bankruptcies, or tougher competition and industry consolidation could squeeze earnings quickly.
- Changes to drug pricing and reimbursement. Healthcare reform and new models for pricing drugs and paying for care could cut what McKesson and its pharmacy and provider customers earn.
- Supply disruptions and product problems. Supply problems sometimes make it hard for McKesson to obtain or deliver products. Drugs and medical products it distributes may also prove defective, exposing it to losses insurance may not fully cover.
Recent events
- Investor presentation or announcement
- Investor presentation or announcement
- Quarterly results released
- Shareholder vote results
- Executive or board change; Investor presentation or announcement
- Major agreement signed; New debt or financial obligation
- Quarterly results released
- Major agreement signed; Major agreement ended; New debt or financial obligation
- Major agreement signed; New debt or financial obligation
- Investor presentation or announcement
For income and retirement investors
McKesson pays a small dividend: the yield was 0.35% as of October 28, 2026. The dividend has risen for at least 9 straight fiscal years, from $1.67 a share in fiscal 2021 to $3.17 in fiscal 2026. That is about 13.7% a year. The payout used only 8% of earnings and 6.7% of free cash flow (cash left after running and investing in the business). Far more cash goes to buybacks (repurchases of its own stock): $18.1 billion over fiscal 2022–2026, versus $1.6 billion in dividends. That helped shrink the share count by 23.6% since 2021. For someone living on portfolio income, the cash paid out is modest.
Past market downturns were mixed. The stock dropped 57.7% in the 2008 financial crisis and took about 16 months from its low to recover. It fell 32.1% in the 2020 COVID crash and recovered in 7.5 months. In the 2022 bear market its worst drop was only 10.5%. Single stocks carry more risk than diversified funds.
Questions investors ask
How does McKesson make money?
McKesson makes most of its money distributing medicines. It purchases branded, generic and specialty drugs from manufacturers and delivers them to pharmacies, hospitals and clinics. It earns a small margin on enormous volume. In the fiscal year ended March 31, 2026, revenue was $403.4 billion and net income was $4.76 billion, just 1.2% of sales. North American Pharmaceutical produced 83.4% of revenue, Oncology & Multispecialty 12%, Medical-Surgical Solutions 2.9% and Prescription Technology Solutions 1.4%.
Does McKesson raise its dividend every year?
Yes, so far. McKesson has raised its dividend for at least 9 consecutive fiscal years, and every year from fiscal 2017 through fiscal 2026 shows an increase. Dividends per share grew from $1.67 in fiscal 2021 to $3.17 in fiscal 2026. The yield is low, at 0.35% as of October 28, 2026. The company returns far more cash through buybacks: $18.1 billion over fiscal 2022–2026, against $1.6 billion in dividends.
Is McKesson separating its Medical-Surgical business?
Yes, it plans to. During fiscal 2026, McKesson announced it intends to make Medical-Surgical Solutions an independent company. The segment supplies doctors' offices, surgery centers and nursing homes, and it brought in 2.9% of revenue that year. On April 20, 2026, McKesson agreed that funds managed by affiliates of Apollo Global Management will invest about $1.25 billion for roughly a 13% minority stake in the segment. That deal needs regulatory approvals. The separation may not happen on the planned terms or timeline, or at all.
Is McKesson still facing opioid lawsuits?
Yes. McKesson's annual report filed May 8, 2026 says it is a defendant in many lawsuits over its distribution of opioids. They were brought by states, provinces, counties, cities, businesses and individuals, and new cases are sometimes filed. Some cases have been settled, and state court consent decrees govern how it distributes controlled substances. The company says it has valid defenses. But an adverse outcome could materially hurt its finances, and the publicity has affected its reputation.
How has McKesson stock performed?
Strongly over the long run, with sharp drops along the way. As of October 28, 2026, the share price gained an average of 36.9% a year over five years and 23.6% a year over ten, not counting dividends. Its largest decline was 57.7%, during the 2008 financial crisis. It also fell as much as 27.2% in the 12 months to that date. The stock traded at 25 times its fiscal 2026 earnings per share, a measure called the P/E ratio.