McKesson's Compounding Keeps Adding Up

McKesson (NYSE: MCK) closed its fiscal 2026 with strong revenue and adjusted EPS growth, exceeding its own targets and increasing its share repurchase authorization to $7.7 billion. The company projects 12% to 14% adjusted EPS growth for fiscal 2027 and is actively reshaping its business mix by divesting European operations and expanding in ophthalmology and oncology. While analysts maintain a "Moderate Buy" rating with an 11% average upside, the stock's current valuation already reflects strong expected growth, and new investors should consider their patience regarding its appreciation potential.