Summary
McKesson Corporation reported a strong fiscal first quarter for 2022, with revenues increasing 13% year-over-year to $62.7 billion. This growth was primarily driven by market expansion within its U.S. Pharmaceutical segment and a recovery in pharmaceutical distribution volumes post-COVID-19. Net income attributable to McKesson Corporation rose by 9% to $486 million, resulting in diluted earnings per share of $3.07, up 13% from the prior year. The company also returned significant capital to shareholders through $1 billion in share repurchases and a dividend increase announcement. Despite facing ongoing litigation, including substantial opioid-related charges, McKesson demonstrated operational resilience and strategic execution, including progress on the planned sale of its European businesses.
Financial Highlights
51 data points| Revenue | $62.67B |
| Cost of Revenue | $59.64B |
| Gross Profit | $3.03B |
| SG&A Expenses | $2.23B |
| Operating Expenses | $2.46B |
| Operating Income | $568.00M |
| Interest Expense | $49.00M |
| Net Income | $486.00M |
| EPS (Basic) | $3.11 |
| EPS (Diluted) | $3.07 |
| Shares Outstanding (Basic) | 156.20M |
| Shares Outstanding (Diluted) | 158.10M |
Key Highlights
- 1Revenue increased by 13% to $62.7 billion, driven by U.S. Pharmaceutical segment growth and COVID-19 recovery.
- 2Net income attributable to McKesson Corporation grew 9% to $486 million, with diluted EPS up 13% to $3.07.
- 3The company returned $1.1 billion to shareholders via share repurchases ($1 billion) and dividends ($69 million).
- 4McKesson announced plans to sell certain European businesses to PHOENIX Group for approximately $1.5 billion.
- 5Operating expenses increased due to $74 million in opioid-related litigation charges and $158 million in restructuring/impairment charges, but revenue growth outpaced this.
- 6The Medical-Surgical Solutions segment recorded $164 million in inventory charges related to PPE intended for charitable donation.
- 7McKesson redeemed €600 million in Euro-denominated notes and completed a $1.1 billion cash tender offer for other notes.