--- title: "McKesson (MCK) Earnings And Buybacks Keep Fair Value In Focus" type: "News" locale: "en" url: "https://longbridge.com/en/news/295590409.md" description: "McKesson reported Q1 results with higher sales but lower net income and EPS. The company continues its share repurchase program as the stock shows strong recent returns. Analysts estimate a fair value of $980.80, suggesting the stock is undervalued relative to its current price of around $901. This valuation is driven by improved revenue mix from specialty pharmaceuticals and acquisitions, though risks include drug pricing policies." datetime: "2026-08-11T23:31:04.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/295590409.md) - [en](https://longbridge.com/en/news/295590409.md) - [zh-HK](https://longbridge.com/zh-HK/news/295590409.md) generator: "portal-rs" --- # McKesson (MCK) Earnings And Buybacks Keep Fair Value In Focus ## Why McKesson’s Latest Earnings and Buyback Caught Investor Attention McKesson (MCK) recently reported first quarter results that paired higher sales with lower net income and earnings per share compared with a year earlier. The company also updated investors on its large, ongoing share repurchase program. See our latest analysis for McKesson. McKesson’s latest earnings update and continued buybacks came as the stock delivered a 22.33% 90 day share price return and a 37.39% 1 year total shareholder return, which suggests momentum has been building rather than fading. If McKesson’s move has you thinking about where else capital might find potential, this is a good moment to scan for other healthcare AI opportunities using the 43 healthcare AI stocks After a strong move that took McKesson to around $901 per share, there is a wide gap between the current price, the analyst target near $991, and one intrinsic value estimate closer to a 46% discount. Where does fair value really sit? ## Most Popular Narrative: 8.1% Undervalued On the latest narrative, McKesson’s fair value of $980.80 sits above the last close at $901.77, which raises clear questions about what is driving that gap. > *Increasing adoption of specialty and oncology pharmaceuticals, alongside recent acquisitions (Core Ventures and PRISM Vision) that expand the provider network and service portfolio, are improving revenue mix quality and positioning the company for higher operating margins and earnings growth.* *Read the complete narrative.* Want to see what sits underneath that fair value for McKesson? The narrative leans heavily on steadier revenue growth, firmer margins, and a future earnings multiple that has been carefully stepped down from prior assumptions. The key is how those three moving parts fit together. **Result: Fair Value of $980.80 (UNDERVALUED)** Have a read of the narrative in full and understand what's behind the forecasts. However, the McKesson narrative also leans on assumptions that could be challenged if policy pressure on drug pricing tightens or if vertical integration squeezes traditional distributors. Find out about the key risks to this McKesson narrative. ## Next Steps Given the mix of optimism and concern around McKesson, it makes sense to move quickly and weigh the evidence for yourself. To see both sides laid out clearly, review the 4 key rewards and 1 important warning sign ## Looking For More Investment Ideas Beyond McKesson? If McKesson has sharpened your focus on quality opportunities, do not stop here. Use the Simply Wall St screener to compare different angles before committing fresh capital. - Target resilient balance sheets by reviewing companies in the solid balance sheet and fundamentals stocks screener (48 results). - Hunt for quality at a potential discount by scanning the 51 high quality undervalued stocks. - Strengthen your income stream by checking out companies in the 9 dividend fortresses. *This article by Simply Wall St is general in nature. **We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice.** It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.* ### **New:** Manage All Your Stock Portfolios in One Place We've created the **ultimate portfolio companion** for stock investors, **and it's free.** • Connect an unlimited number of Portfolios and see your total in one currency • Be alerted to new Warning Signs or Risks via email or mobile • Track the Fair Value of your stocks Try a Demo Portfolio for Free ### Related Stocks - [MCK.US](https://longbridge.com/en/quote/MCK.US.md) ## Related News & Research - [D L Carlson Investment Group Inc. Purchases New Shares in McKesson Corporation $MCK](https://longbridge.com/en/news/296587606.md) - [Performance Wealth Partners LLC Acquires Shares of 1,441 McKesson Corporation $MCK](https://longbridge.com/en/news/296210904.md) - [GSA Capital Partners LLP Purchases New Holdings in McKesson Corporation $MCK](https://longbridge.com/en/news/296193587.md) - [TFR Capital LLC. Invests $2.49 Million in McKesson Corporation $MCK](https://longbridge.com/en/news/296021268.md) - [Danica Pension Livsforsikringsaktieselskab Makes New $48.77 Million Investment in McKesson Corporation $MCK](https://longbridge.com/en/news/296323235.md) --- > **Disclaimer: This article is for reference only and does not constitute any investment advice.**