Summary
McKesson Corporation reported strong revenue growth of 23% for the second quarter of fiscal year 2025, reaching $97.8 billion, primarily driven by its U.S. Pharmaceutical segment. Despite this top-line expansion, net income attributable to McKesson Corporation saw a decrease of 14% to $784 million, resulting in diluted earnings per share of $6.25, down from $7.00 in the prior year period. This decline is partly attributed to a $189 million provision for bad debts related to the Rite Aid bankruptcy and increased operating expenses associated with recent significant acquisitions. The company completed two major acquisitions during the quarter: PRISM Vision Holdings, LLC for $874 million and Community Oncology Revitalization Enterprise Ventures, LLC (Core Ventures) for $2.5 billion. These acquisitions, along with increased investments in technology, contributed to a rise in operating expenses and a significant use of cash in investing activities. McKesson also returned $671 million to shareholders through share repurchases and dividends, and announced an increase in its quarterly dividend to $0.82 per share.
Financial Highlights
50 data points| Revenue | $97.83B |
| Cost of Revenue | $94.55B |
| Gross Profit | $3.28B |
| SG&A Expenses | $2.20B |
| Operating Expenses | $2.24B |
| Operating Income | $1.04B |
| Net Income | $784.00M |
| EPS (Basic) | $6.28 |
| EPS (Diluted) | $6.25 |
| Shares Outstanding (Basic) | 124.90M |
| Shares Outstanding (Diluted) | 125.50M |
Key Highlights
- 1Revenues increased by 23% year-over-year to $97.8 billion, primarily driven by the U.S. Pharmaceutical segment.
- 2Net income attributable to McKesson Corporation decreased by 14% to $784 million, with diluted EPS falling to $6.25 from $7.00 in the prior year.
- 3The company made significant strategic acquisitions, including PRISM Vision for $874 million and Core Ventures for $2.5 billion.
- 4Operating expenses increased by 6%, notably impacted by a $189 million provision for bad debts related to Rite Aid's bankruptcy.
- 5Cash used in operating activities was $918 million, and cash used in investing activities was $3.6 billion, largely due to acquisitions.
- 6McKesson returned $671 million to shareholders via share repurchases ($581 million) and dividends ($90 million).
- 7The company announced its intention to separate the Medical-Surgical Solutions segment into an independent company.