McKesson Corporation Posts Record $103.15 Billion Q2 Revenue as Margin Expansion Drives 26% Operating Profit Surge
McKesson Corporation (MCK) reported a record **$103.15 billion** in revenue for the second quarter, marking a 10% increase year-over-year, driven by successful margin expansion strategies across its core businesses.
Strong Q2 Performance Validates Margin Strategy
The strong Q2 results confirmed the effectiveness of McKesson’s strategic shift toward higher-profitability areas. The company’s operating profit surged **26%** year-over-year, demonstrating significant leverage from its revenue growth. Furthermore, earnings per share (EPS) for the quarter surpassed analyst consensus estimates by **9%**.
These metrics underscore the company's focus on profitability over sheer volume. McKesson’s management has been actively pursuing a strategy aimed at boosting overall corporate margins by growing its high-margin segments, particularly Oncology & Multispecialty, while simultaneously reducing exposure to or divesting lower-margin operations, such as Medical-Surgical Solutions.
The strategy focuses on boosting margins by growing high-margin Oncology & Multispecialty and divesting low-margin Medical-Surgical Solutions.
Analyst Sees 13.5% Upside on FY26 Visibility
The robust financial performance and clear strategic direction have bolstered investor confidence, leading analysts to reassess the stock's valuation. Despite the strong growth, some market observers believe McKesson Corporation remains undervalued.
Based on the company's strong revenue growth, consistent margin expansion, and ongoing capital returns, at least one analyst has assigned a “Buy” rating to MCK. This rating is underpinned by strong earnings visibility extending through fiscal year 2026 (FY26).
- The analyst set a price target of $920 for MCK shares.
- This target implies a potential upside of **13.5%** from current trading levels.
The combination of record revenue, substantial operating profit growth, and a focused strategy on high-value healthcare services positions McKesson favorably within the competitive pharmaceutical distribution and healthcare technology sector.
