| Imagery Source: Wikimedia Commons / Serijarla |
| Information Source: McKesson Corporation |
| McKesson Corporation (NYSE: MCK) today announced results for the second quarter ended September 30, 2025. |
| Second Quarter Highlights: |
- Quarterly consolidated revenues increased to a record high of $103.2 billion, an increase of 10% compared to the prior year.
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- Earnings per diluted share of $8.92 increased $7.05.
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- Adjusted Earnings per Diluted Share of $9.86 increased 39%.
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- Generated $2.4 billion of cash flow from operations and $2.2 billion of Free Cash Flow.
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| Fiscal 2026 Full Year Outlook: |
- Raised Adjusted Earnings per Diluted Share guidance range to $38.35 to $38.85, from the previous range of $38.05 to $38.55.
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- Fiscal 2026 Adjusted Earnings per Diluted Share guidance range indicates 16% to 18% growth compared to the prior year.
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- The Company does not forecast GAAP earnings per diluted share.
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| “McKesson’s second quarter results underscore the strength of our differentiated assets, capabilities, and continued momentum as a diversified healthcare services leader. We delivered record revenue in the quarter of $103 billion, increasing 10% and Adjusted Earnings per Diluted Share accelerating 39% compared to the prior year. These results reflect disciplined execution of our enterprise strategy – advancing growth in oncology and multispecialty and biopharma services. We remain confident in our ability to create value for our customers, partners, employees, and shareholders,” said Brian Tyler, chief executive officer. |
| “These achievements reflect the dedication of McKesson employees and their unwavering commitment to delivering measurable value to all stakeholders. Our strategic focus in our growth pillars of oncology and multispecialty and biopharma services, combined with disciplined execution, continues to drive sustainable long-term growth. Following our strong first-half performance, sustained momentum across our portfolio, and confidence in the outlook for the remainder of the year, we are raising our fiscal 2026 Adjusted Earnings per Diluted Share guidance by $0.30 to a range of $38.35 to $38.85. This builds on the $0.80 increase announced at Investor Day in September 2025.” |
| Fiscal 2026 Second Quarter Result Summary |
| Second quarter revenues were $103.2 billion, an increase of 10% from a year ago, driven by growth in the North American Pharmaceutical segment, due to increased prescription volumes from retail national account customers, and growth in the distribution of oncology and multispecialty products, including contributions from acquisitions in the Oncology & Multispecialty segment. |
| Second quarter earnings per diluted share were $8.92 compared to $1.87 a year ago, an increase of $7.05, primarily due to a prior year charge of $643 million for the fair value remeasurement of assets and liabilities related to McKesson’s agreement to sell its Canadian retail businesses and a prior year charge of $227 million related to business rationalisation initiatives. |
| Second quarter Adjusted Earnings per Diluted Share were $9.86 compared to $7.07 a year ago, an increase of 39%, driven by strong operational growth across the business, including contributions from acquisitions, net gains in the Oncology & Multispecialty segment from the sale of an investment and market decisions within The US Oncology Network, and a lower tax rate. |
| During the three months ended September 30, 2025, McKesson generated cash flow from operations of $2.4 billion and invested $196 million in capital expenditures, resulting in Free Cash Flow of $2.2 billion. During the first six months of the fiscal year, McKesson generated cash from operations of $1.5 billion and invested $385 million in capital expenditures, resulting in Free Cash Flow of $1.1 billion. |
| For the first six months of the fiscal year, McKesson returned $1.6 billion of cash to shareholders, which included $1.4 billion of common stock repurchases and $179 million of dividend payments. |
| Business Highlights |
- On August 4, 2025, McKesson entered into a definitive agreement to sell its retail and distribution businesses in Norway. The transaction is subject to customary closing conditions, including receipt of required approvals.
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- On September 18, 2025, McKesson announced changes to its reportable segments and organisational structure, effective in the second quarter of fiscal 2026. The new reporting structure enhances strategic alignment and transparency and optimises portfolio management.
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- On September 23, 2025, McKesson hosted an Investor Day where management highlighted progress against the company’s growth strategies, including updated and increased long-term financial targets.
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- McKesson continued to advance and expand its oncology and multispecialty platform. On October 31, 2025, PRISM Vision Group expanded its footprint beyond the mid-Atlantic region with the addition of Spokane Eye Clinic, located in Spokane, Washington.
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| North American Pharmaceutical Segment |
- Revenues were $86.5 billion, an increase of 8%, driven by increased prescription transaction volumes, including higher volumes from retail national account customers and speciality products.
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- Segment Operating Profit was $852 million. Adjusted Segment Operating Profit was $851 million, an increase of 13%, driven by growth in the distribution of speciality products to health systems and the impact of new product launches.
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| Oncology & Multispecialty Segment |
- Revenues were $12.0 billion, an increase of 32%, driven by increased provider and speciality distribution growth and contributions from acquisitions.
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- Segment Operating Profit was $332 million. Adjusted Segment Operating Profit was $397 million, an increase of 71%, driven by increased provider and speciality distribution growth, contributions from acquisitions, and net gains from the sale of an investment and market decisions within The US Oncology Network.
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| Prescription Technology Solutions Segment |
- Revenues were $1.4 billion, an increase of 9%, driven by increased prescription volumes in the third-party logistics and technology services businesses.
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- Segment Operating Profit was $244 million. Adjusted Segment Operating Profit was $261 million, an increase of 20%, driven by higher demand for access solutions.
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| Medical-Surgical Solutions Segment |
- Revenues were $2.9 billion, flat to the prior year, driven by higher volumes of speciality pharmaceuticals, offset by lower contributions from illness season products and testing.
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- Segment Operating Profit was $220 million. Adjusted Segment Operating Profit was $249 million, an increase of 2%, driven by operational efficiencies from cost optimisation initiatives, partially offset by lower contributions from illness season products and testing.
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| Fiscal 2026 Outlook |
| McKesson does not provide forward-looking guidance on a GAAP basis as the company is unable to provide a quantitative reconciliation of forward-looking Non-GAAP measures to the most directly comparable forward-looking GAAP measure, without unreasonable effort. McKesson cannot reasonably forecast LIFO inventory-related adjustments, certain litigation loss and gain contingencies, restructuring, impairment and related charges, and other adjustments, which are difficult to predict and estimate. These items are generally uncertain and depend on various factors, many of which are beyond the company's control, and as such, any associated estimate and its impact on GAAP performance could vary materially. |
| McKesson is raising its fiscal 2026 Adjusted Earnings per Diluted Share guidance by $0.30 to a range of $38.35 to $38.85 from $38.05 to $38.55. This builds on the $0.80 increase announced at Investor Day in September 2025. |
| For the full document, click the link below |
| McKesson Corporation |
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