Summary
McKesson Corporation reported strong revenue growth for the third quarter and first nine months of fiscal year 2025, driven by its U.S. Pharmaceutical segment and increased volumes in its International segment. Diluted Earnings Per Share (EPS) saw a significant increase in the third quarter, though it slightly declined year-over-year for the nine-month period. The company also completed the divestiture of its Canadian retail businesses. Significant charges related to restructuring initiatives and remeasuring the Canadian retail disposal group to fair value were incurred. McKesson continues to manage its substantial opioid-related litigation liabilities, with significant payments made and a large accrued liability remaining. The company's financial position remains solid, supported by robust operating cash flow and access to credit facilities. McKesson continues to return capital to shareholders through dividends and substantial share repurchases, with a significant remaining authorization. Strategic acquisitions, including a controlling interest in PRISM Vision Holdings, are underway to further enhance its business segments. Investors should monitor ongoing litigation developments, particularly those related to opioids, and the integration of new acquisitions.
Financial Highlights
53 data points| Revenue | $95.29B |
| Cost of Revenue | $92.01B |
| Gross Profit | $3.28B |
| SG&A Expenses | $2.03B |
| Operating Expenses | $2.06B |
| Operating Income | $1.22B |
| Interest Expense | $67.00M |
| Net Income | $879.00M |
| EPS (Basic) | $6.98 |
| EPS (Diluted) | $6.95 |
| Shares Outstanding (Basic) | 126.00M |
| Shares Outstanding (Diluted) | 126.60M |
Key Highlights
- 1Revenue increased by 18% to $95.3 billion for the three months ended December 31, 2024, and by 15% to $268.2 billion for the nine months ended December 31, 2024.
- 2Diluted EPS increased to $6.95 for the three months ended December 31, 2024, up from $4.42 in the prior year period.
- 3Completed the sale of its Canadian retail businesses (Rexall and Well.ca) on December 30, 2024.
- 4Incurred $666 million in charges related to the remeasurement of the Canadian retail disposal group to fair value less costs to sell for the nine-month period.
- 5Recorded $213 million in restructuring, impairment, and related charges for the nine-month period, related to enterprise-wide initiatives.
- 6Total estimated opioid-related litigation liabilities stood at $6.4 billion as of December 31, 2024.
- 7Returned $3.1 billion to shareholders through $2.8 billion in share repurchases and $254 million in dividends during the nine months ended December 31, 2024.