Summary
McKesson Corporation's fiscal year 2025 performance demonstrated robust revenue growth, up 16% year-over-year, driven primarily by its U.S. Pharmaceutical segment, which saw increased volumes from retail national accounts and growth in specialty pharmaceuticals. The company also reported a significant increase in diluted earnings per share from continuing operations to $25.72, up from $22.39 in the prior year. Key financial events impacting the year included a $667 million charge related to the sale of its Canadian retail businesses and $298 million in restructuring charges for enterprise-wide efficiency initiatives. McKesson returned $3.5 billion to shareholders through share repurchases and dividends, underscoring its commitment to capital return. The company is actively managing significant legal and regulatory challenges, particularly those related to opioid litigation, for which it has accrued $6.4 billion in liabilities. While these are ongoing, the company's core pharmaceutical distribution and technology solutions segments appear to be performing well, evidenced by the revenue and EPS growth. Strategic investments in technology and ongoing efforts to drive operational efficiencies are key focus areas for future performance.
Financial Highlights
54 data points| Revenue | $359.05B |
| Cost of Revenue | $345.73B |
| Gross Profit | $13.32B |
| SG&A Expenses | $8.51B |
| Operating Expenses | $8.90B |
| Operating Income | $4.42B |
| Net Income | $3.29B |
| EPS (Basic) | $25.86 |
| EPS (Diluted) | $25.72 |
| Shares Outstanding (Basic) | 127.40M |
| Shares Outstanding (Diluted) | 128.10M |
Key Highlights
- 1Revenue increased by 16% year-over-year to $359.05 billion, primarily driven by the U.S. Pharmaceutical segment's strong performance.
- 2Diluted earnings per share from continuing operations increased to $25.72, a 15% rise from the previous fiscal year.
- 3The company returned $3.5 billion to shareholders in fiscal year 2025 through $3.1 billion in stock repurchases and $345 million in dividends.
- 4A significant charge of $667 million was recorded related to the fair value remeasurement of the Canadian retail disposal group upon its sale.
- 5Restructuring charges of $298 million were incurred for enterprise-wide initiatives aimed at improving operational efficiency and streamlining the organization.
- 6McKesson received $444 million related to its share of antitrust legal settlements, recognized as a gain within Cost of Sales.
- 7The company reported an accrued liability of $6.4 billion for opioid-related claims as of March 31, 2025.