McKesson Reports Fiscal 2025 Fourth Quarter and Full Year Results and Provides Fiscal 2026 Guidance; Announces Intent to Separate Medical-Surgical Solutions

IRVING, Texas, May 8, 2025 - McKesson Corporation (NYSE:MCK) today announced results for the fourth quarter and fiscal year ended March 31, 2025.

Fourth Quarter Highlights:

• Consolidated revenues of $90.8 billion increased 19%.
• Earnings per diluted share of $10.01 increased $3.99.
• Adjusted Earnings per Diluted Share of $10.12 increased 64%.

Full Year Highlights:

• Consolidated revenues of $359.1 billion increased 16%.
• Earnings per diluted share of $25.72 increased $3.33.
• Adjusted Earnings per Diluted Share of $33.05 increased 20%.
• Cash flow from operations of $6.1 billion and Free Cash Flow of $5.2 billion.

“McKesson delivered strong fourth quarter performance reporting revenue growth of 19% and Adjusted Earnings per Diluted Share growth of 64%. This marks another year of strong financial results, above our long-term targets, underpinned by operational execution against our strategic priorities, and disciplined and focused capital deployment,” said Brian Tyler, chief executive officer. “The strength of our core pharmaceutical distribution business, expansion of our Oncology platform, and continued growth of our differentiated biopharma solutions businesses led to strong results. I want to thank Team McKesson for their hard work and dedication this past quarter and throughout fiscal 2025.”

“As we look ahead to fiscal 2026, we are well positioned to build on our operating momentum, accelerate growth through our strategic priorities, and target investments to accelerate growth and modernize the portfolio.”

Outlook:

• Establishing fiscal 2026 Adjusted Earnings per Diluted Share guidance range of $36.75 to $37.55 which indicates 11% to 14% forecasted growth compared to the prior year. Excluding fiscal 2025 net gains associated with McKesson Ventures’ equity investments, the guidance range indicates 13% to 16% forecasted growth.
• The Company does not forecast GAAP earnings per diluted share¹.
• Reaffirming long-term Adjusted Earnings per Diluted Share growth target of 12% to 14% and updating long-term Adjusted Segment Operating Profit growth target for U.S. Pharmaceutical from 5% to 7% to a new target of 6% to 8%.

Strategic Portfolio Update for the Medical-Surgical Solutions Segment

Today McKesson is announcing its intention to separate its Medical-Surgical Solutions segment into an independent company (“NewCo”). Disciplined portfolio management is a hallmark of our enterprise strategy. McKesson believes a separation will further enhance the strategic opportunity and operational focus of both companies and unlock value for McKesson shareholders. The separation would advance McKesson and NewCo’s ability to create value for customers, partners, patients, and shareholders. With a separation of Medical-Surgical Solutions, McKesson will focus the Company and its capital deployment priorities on opportunities that best align with its long-term enterprise strategies, advancing McKesson’s portfolio to focus investment on higher growth, higher margin opportunities in Oncology and Biopharma Solutions, unlocking substantial value for stakeholders.

“Disciplined capital deployment and portfolio management are hallmarks of our strategy,” said Mr. Tyler. “In alignment with our strategy, we are announcing our intent to separate the Medical-Surgical Solutions segment into an independent company. This action is designed to unlock significant value for both McKesson and Medical-Surgical Solutions, as each focuses on maximizing growth and delivering operational excellence in their respective markets as world-class healthcare services and solutions leaders. We believe that the separation will deliver sustainable long-term growth for both companies.”

NewCo would be a differentiated medical surgical supply and solutions company with a compelling leadership position, attractive margins, and potential for growth acceleration across all the alternate sites of care markets. The separation advances McKesson and NewCo’s ability to create value for customers, partners, patients, and shareholders with increased investment and dedicated capital allocation.

A separation would result in two well-capitalized, world-class companies, well-positioned to pursue their respective strategic growth priorities.

McKesson is committed to exploring all opportunities to execute a separation in a manner that maximizes shareholder value and anticipates providing more information as appropriate on the form and timing as the process progresses.

Fiscal 2025 Fourth Quarter and Full Year Result Summary

Fourth quarter revenues were $90.8 billion, an increase of 19% from a year ago, primarily driven by growth in the U.S. Pharmaceutical segment, due to increased prescription volumes from retail national customers and growth in the distribution of specialty products, including higher volumes in oncology.

Fourth quarter earnings per diluted share was $10.01 compared to $6.02 a year ago, an increase of $3.99. Full year earnings per diluted share was $25.72 compared to $22.39 a year ago, an increase of $3.33.

Fourth quarter Adjusted Earnings per Diluted Share was $10.12 compared to $6.18 a year ago, an increase of 64%, driven by a lower tax rate and strong operational growth across the business. Full year Adjusted Earnings per Diluted Share was $33.05 compared to $27.44 a year ago, an increase of 20%, driven by strong operational growth across the business and a lower share count.

For the full year, McKesson returned $3.5 billion of cash to shareholders, which included $3.1 billion of common stock repurchases and $345 million of dividend payments. During the fiscal year, McKesson generated cash from operations of $6.1 billion, and invested $859 million in capital expenditures, resulting in Free Cash Flow of $5.2 billion.

Business Highlights

• McKesson continued to advance and expand its oncology and biopharma platforms.
  • On August 26, 2024, McKesson announced an agreement to acquire a controlling interest in Florida Cancer Specialists & Research Institute LLC’s Core Ventures. The transaction is anticipated to close on June 2, 2025, subject to customary closing conditions.
  • In the past year, McKesson’s biopharma services platform helped patients save more than $10 billion on brand and specialty medications, helped to prevent 12 million prescriptions from being abandoned due to affordability challenges, and helped patients access their medicine more than 100 million times.
• On April 2, 2025, McKesson announced completion of the acquisition of an 80% controlling interest of PRISM Vision Holdings, LLC, a leading provider of general ophthalmology and retina management services.

U.S. Pharmaceutical Segment

Fourth Quarter

• Revenues were $83.2 billion, an increase of 21%, driven by increased prescription volumes from retail national customers and growth in the distribution of specialty products, including higher volumes in oncology.
• Segment Operating Profit was $1.3 billion. Adjusted Segment Operating Profit was $1.1 billion, an increase of 17%, driven by higher volumes from retail national account customers and growth in the distribution of specialty products to providers and health systems.

Full Year

• Revenues were $327.7 billion, an increase of 18%, driven by increased prescription volumes from retail national customers and growth in the distribution of specialty products, including higher volumes in oncology.
• Segment Operating Profit was $4.0 billion. Adjusted Segment Operating Profit was $3.7 billion, an increase of 12%, driven by growth in the distribution of specialty products to providers and health systems and higher volumes from retail national account customers.

Prescription Technology Solutions Segment

Fourth Quarter

• Revenues were $1.3 billion, an increase of 13%, driven by increased prescription volumes in the third-party logistics and technology services businesses.
• Segment Operating Profit was $248 million. Adjusted Segment Operating Profit was $285 million, an increase of 34%, driven by higher demand for access solutions.

Full Year

• Revenues were $5.2 billion, an increase of 9%, driven by increased prescription volumes in the third-party logistics and technology services businesses.
• Segment Operating Profit was $875 million. Adjusted Segment Operating Profit was $1.0 billion, an increase of 15%, driven by growth in access and affordability solutions.

Medical-Surgical Solutions Segment

Fourth Quarter

• Revenues were $2.9 billion, an increase of 1%, driven by higher volumes of specialty pharmaceuticals, partially offset by lower volumes, customer mix, and product demand shifts across the primary care channel.
• Segment Operating Profit was $227 million. Adjusted Segment Operating Profit was $285 million, an increase of 15%, driven by operational efficiencies from the cost optimization initiatives.

Full Year

• Revenues were $11.4 billion, an increase of 1%, driven by higher volumes of specialty pharmaceuticals, partially offset by lower volumes, customer mix, and product demand shifts across the primary care channel.
• Segment Operating Profit was $773 million. Adjusted Segment Operating Profit was $1.0 billion, flat to prior year, driven by operational efficiencies from the cost optimization initiatives, offset by lower contributions in the primary care channel.

International Segment

Fourth Quarter

• Revenues were $3.5 billion, a decrease of 2%, driven by the divestiture of the Canada-based Rexall and Well.ca retail businesses, partially offset by higher pharmaceutical distribution volumes in the Canadian business.
• Segment Operating Profit was $94 million. Adjusted Segment Operating Profit was $102 million, an increase of 9%, driven by higher pharmaceutical distribution volumes in the Canadian business.

Full Year

• Revenues were $14.7 billion, an increase of 4%, driven by higher pharmaceutical distribution volumes in the Canadian business.
• Segment Operating Loss was $213 million. Adjusted Segment Operating Profit was $428 million, an increase of 13%, driven by higher pharmaceutical distribution volumes in the Canadian business, and discontinued recording of depreciation and amortization on Canada-based Rexall and Well.ca retail businesses, which were divested in the third quarter of fiscal 2025.

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 anticipates fiscal 2026 Adjusted Earnings per Diluted Share of $36.75 to $37.55 to reflect strong operating momentum across the businesses, strength of its financial position, and a balanced approach to capital deployment.

Long-Term Growth Targets

            McKesson continues to strengthen its portfolio of differentiated assets and capabilities, advancing health outcomes for all. As a result of continued, consistent strong execution against its strategic initiatives, McKesson is updating and reaffirming the following long-term growth targets:

• Reaffirming long-term Adjusted Earnings per Diluted Share growth target of 12% to 14%.
• Updating U.S. Pharmaceutical long-term Adjusted Segment Operating Profit growth target to 6% to 8% from previous range of 5% to 7%.
• Reaffirming Prescription Technology Solutions long-term Adjusted Segment Operating Profit growth target of 11% to 12%.

Additional modeling considerations will be provided in the earnings call presentation.

Conference Call Details

McKesson has scheduled a conference call for today, Thursday, May 8th at 4:30 PM ET to discuss the company’s financial results. The audio webcast of the conference call will be available live and archived on McKesson's Investor Relations website at investor.mckesson.com.

Upcoming Investor Event

McKesson management will be participating in the following investor event:

• BofA Securities 2025 Healthcare Conference, May 13, 2025

The audio webcasts, and a complete listing of upcoming events for the investment community, including details and updates, will be available on McKesson's Investor Relations website.

Non-GAAP Financial Measures

GAAP refers to the U.S. generally accepted accounting principles. This press release includes GAAP financial measures as well as Non-GAAP financial measures, including Adjusted Gross Profit, Adjusted Operating Expenses, Adjusted Other Income, Adjusted Interest Expense, Adjusted Income Tax Expense, Adjusted Earnings, Adjusted Earnings per Diluted Share, Adjusted Segment Operating Profit, Adjusted Segment Operating Profit Margin, Adjusted Corporate Expenses, Adjusted Operating Profit, and Free Cash Flow which are financial measures not calculated in accordance with GAAP. Refer to the “Supplemental Non-GAAP Financial Information” section of the accompanying financial statement tables for the definitions and usefulness of the company’s Non-GAAP financial measures and the attached schedules for reconciliations of the differences between the Non-GAAP financial measures and their most directly comparable GAAP financial measures.

Cautionary Statements

This earnings release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements may be identified by their use of terminology such as “believes,” “expects,” “anticipates,” “may,” “will,” “should,” “seeks,” “approximately,” “intends,” “projects,” “plans,” “estimates,” “targets,” or the negative of these words or other comparable terminology. Any discussion of our intent to separate our Medical-Surgical Solutions segment into an independent company, other anticipated or completed transactions, including the anticipated closings thereof, or synergies expected therefrom, litigation outcomes, financial outlook, guidance, trends, strategy, plans, assumptions, expectations, commitments, and intentions may also include forward-looking statements. Readers should not place undue reliance on forward-looking statements, such as financial performance forecasts, which speak only as of the date they are first made. Except to the extent required by law, we undertake no obligation to update or revise our forward-looking statements. Forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those projected, anticipated, or implied. Although it is not possible to predict or identify all such risks and uncertainties, we encourage investors to read the risk factors described in our publicly available filings with the Securities and Exchange Commission and news releases.

These risk factors include, but are not limited to: we experience costly and disruptive legal disputes and settlements, including regarding our role in distributing controlled substances such as opioids; we experience losses not covered by insurance or indemnification; we are subject to frequently changing, extensive, complex, and challenging healthcare and other laws; we from time to time record significant charges from impairment to goodwill, intangibles, and other long-lived assets; we experience cybersecurity incidents that might significantly compromise our technology systems or might result in material data breaches; we experience significant problems with information systems or networks; we may be unsuccessful in achieving our strategic growth objectives; we may be unsuccessful in our efforts to implement initiatives to reduce or optimize our costs; we might be unable to successfully complete or integrate acquisitions or other strategic transactions, especially in the timeframes noted; we may not receive anticipated benefits from acquisitions or other strategic transactions; we are impacted by customer purchase reductions, contract non-renewals, payment defaults, and bankruptcies; our contracts with government entities involve future funding and compliance risks; we might be harmed by changes in our relationships or contracts with suppliers; our use of third-party data is subject to risks and limitations that could impede the growth of our data services business; we might be unable to successfully recruit and retain qualified employees; we might be adversely impacted by healthcare reform such as changes in pricing and reimbursement models; we might be adversely impacted by competition and industry consolidation; we are adversely impacted by changes or disruptions in product supply and have difficulties in sourcing or selling products due to a variety of causes; we are adversely impacted as a result of our distribution of generic pharmaceuticals; we are adversely impacted by changes in the economic environments in which we operate; changes affecting capital and credit markets might impede access to credit, increase borrowing costs, and disrupt banking services for us and our customers and suppliers and might impair the financial soundness of our customers and suppliers; we might be adversely impacted by changes in tax legislation or challenges to our tax positions; we might be adversely impacted by conditions and events outside of our control, such as widespread public health issues, natural disasters, and geopolitical factors; we may be adversely affected by global climate change or by regulatory or market responses to such change; and evolving expectations and regulatory requirements related to governance and sustainability matters, including those concerning human capital management, climate change, environmental responsibility, and social impact may have an adverse effect on our business, financial condition, and results of operations and damage our reputation.

About McKesson Corporation

McKesson Corporation is a diversified healthcare services leader dedicated to advancing health outcomes for patients everywhere. Our teams partner with biopharma companies, care providers, pharmacies, manufacturers, governments, and others to deliver insights, products and services to help make quality care more accessible and affordable. Learn more about how McKesson is impacting virtually every aspect of healthcare at McKesson.com and read Our Stories.  

Tables and full text of earnings release also available for viewing and download in PDF format: McKesson Corporation Reports Fiscal 2025 Fourth Quarter Results (PDF, 398 KB).