Irving, Texas-based McKesson Corporation (MCK) is a global healthcare services provider. Valued at $75.4 billion by market cap, it operates through U.S. Pharmaceutical, Prescription Technology Solutions (RxTS), Medical-Surgical Solutions, and international segments. The company is expected to announce its Q1 earnings after the market closes on Wednesday, Aug. 7.

Ahead of the event, analysts expect McKesson to report a profit of $7.17 per share, down 1.4% from $7.27 per share reported in the year-ago quarter. The company has surpassed Wall Street’s EPS projections in three of the past four quarters while missing on one other occasion. MCK reported an EPS of $6.18 in the most recent quarter, missing the consensus estimates by 2.5%.

In fiscal 2025, analysts expect MCK to report an EPS of $31.67, up 15.4% from $27.44 in fiscal 2024.

MCK stock is up 25.3% on a YTD basis, outperforming the S&P 500 Index’s ($SPX) 15.4% gains and the S&P 500 Healthcare Sector SPDR’s (XLV) 8.7% returns over the same time frame.

Shares of McKesson dipped marginally following its Q1 earnings release on May 7 due to weaker-than-expected quarterly revenue and profit due to a slump in demand for branded and specialty drugs in its U.S. pharmaceutical segment. However, the company has maintained consistent dividend payments and repurchased shares worth $3 billion in fiscal 2024.

The consensus estimate on McKesson stock is bullish, with an overall “Strong Buy” rating. Among the 16 analysts covering the stock, 12 recommend a “Strong Buy,” one advises a “Moderate Buy,” and three suggest a “Hold” rating. The average target price for MCK is $630.86, indicating a potential upside of 8.7% from current price levels.

• Unusual Options Activity Sets the Stage for Upwork (UPWK) to Potentially Rise
• Infosys Gushes Free Cash Flow Based on AI - INFY Stock Looks Cheap to Value Investors
• What You Need to Know Ahead of Marathon Petroleum's Earnings Release
• What to Expect From Devon Energy's Next Quarterly Earnings Report