McKesson (MCK) Target Price Raised to $904 Amid Spin-Off Plans
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 30 2025
0mins
Source: Yahoo Finance
- Target Price Increase: Deutsche Bank analyst raised McKesson's price target from $861 to $904, despite the company's plans to exit its med-surgical business through an IPO, with the spin-off expected to be completed by the end of 2027; this move may dilute shareholder value, yet analysts believe the stock can still perform well.
- Earnings Forecast Upgrade: McKesson raised its fiscal 2026 adjusted EPS forecast to $38.35-$38.85, exceeding the market expectation of $38.33, reflecting the company's ongoing strength in oncology and specialty drug distribution, indicating significant growth potential in high-margin areas.
- Strong Quarterly Performance: The latest quarter saw adjusted EPS of $9.86, well above the expected $9.02, although revenue of $103.15 billion slightly missed the forecast of $104.13 billion, demonstrating the company's stability and resilience in the pharmaceutical distribution sector.
- Business Restructuring Strategy: McKesson plans to reorganize into four operating segments to sharpen its focus on higher-margin areas, including cancer medicines, which will support long-term growth and enhance the company's competitive position and profitability.
Analyst Views on MCK
Wall Street analysts forecast MCK stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for MCK is 942.83 USD with a low forecast of 880.00 USD and a high forecast of 1000.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
14 Analyst Rating
12 Buy
2 Hold
0 Sell
Strong Buy
Current: 834.180
Low
880.00
Averages
942.83
High
1000.00
Current: 834.180
Low
880.00
Averages
942.83
High
1000.00
About MCK
McKesson Corporation is a diversified healthcare services company, which focuses on advancing health outcomes for patients everywhere. Its U.S. Pharmaceutical segment distributes branded, generic, specialty, biosimilar and over-the-counter pharmaceutical drugs, and other healthcare-related products in the United States (U.S.). The Prescription Technology Solutions (RxTS) segment helps solve medication access, affordability and adherence challenges for patients by working across healthcare to connect patients, pharmacies, pharmacy benefit managers, health plans, and biopharma companies. The Medical-Surgical Solutions provides medical-surgical supply distribution, logistics, and other services to healthcare providers, including physician offices, hospital reference labs, and home healthcare agencies. The International segment provides distribution and services to wholesale, institutional, and retail customers in Canada and Norway. It also offers oncology and specialty solutions.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
