McKesson Stock Surged 30%, Here’s Why
McKesson (MCK)’s stock jumped 30%, fueled by a modest revenue rise and a sharp margin expansion, as Q2 earnings beat expectations and management raised FY26 guidance. Investor Day highlights and analyst upgrades added fuel to the rally—let’s unpack the story behind these moves.
Below is an analytical breakdown of stock movement into key contributing metrics.
| 8272025 | 11252025 | Change | |
|---|---|---|---|
| Stock Price ($) | 682.7 | 889.3 | 30.3% |
| Change Contribution By | LTM | LTM | |
| Total Revenues ($ Mil) | 377,595.0 | 387,094.0 | 2.5% |
| Net Income Margin (%) | 0.8% | 1.0% | 24.3% |
| P/E Multiple | 26.9 | 27.3 | 1.5% |
| Shares Outstanding (Mil) | 124.9 | 124.0 | 0.7% |
| Cumulative Contribution | 30.3% |
So what is happening here? The stock surged 30%, driven by a 2.5% revenue increase, a strong 24% margin boost, and a modest 1.5% lift in its P/E multiple. Let’s dive into the events behind these shifts.
Here Is Why McKesson Stock Moved
- The Next Big Rally in Ford Motor Stock Could Start Like This
- The Risk Factors to Watch Out For in NVIDIA Stock
- Intuitive Surgical Stock Now 16% Cheaper, Time To Buy
- AT&T Stock Pays Out $85 Bil – Investors Take Note
- Intel Stock Pays Out $92 Bil – Investors Take Note
- Comcast Stock Capital Return Hits $44 Bil
- Q2 FY26 Earnings Beat: McKesson reported record revenue and 39% adjusted EPS growth, exceeding analyst expectations.
- Raised FY26 EPS Guidance: McKesson increased its full-year adjusted EPS guidance for fiscal 2026 after strong Q2 results.
- Investor Day Updates: Company highlighted strategic growth initiatives and new organizational structure on Sep 23, 2025.
- Strong Segment Growth: Oncology & Multispecialty segment showed significant revenue and operating profit increases.
- Analyst Target Increase: JPMorgan Chase & Co. raised MCK’s price target to $853.00 with an ‘overweight’ rating.
Our Current Assesment Of MCK Stock
Opinion: We currently find MCK stock fairly priced. Why so? Have a look at the full story. Read Buy or Sell MCK Stock to see what drives our current opinion.
Risk: A solid way to gauge risk in MCK is to check its drops in past market stress periods. It plunged over 81% in the Dot-Com crash and slid nearly 58% during the Global Financial Crisis. The 2018 selloff saw a decline of about 38%, while the Covid pandemic brought a 32% dip. Even the recent inflation shock caused a pullback of 15%. So, even with all the positives around, MCK hasn’t been immune to deep declines when markets turn sour.
MCK stock may have seen strong gains recently, but investing in a single stock without detailed, thorough analysis can be risky. The Trefis High Quality (HQ) Portfolio, with a collection of 30 stocks, has a track record of comfortably outperforming its benchmark that includes all 3 — the S&P 500, S&P mid-cap, and Russell 2000 indices. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride, as evident in HQ Portfolio performance metrics.