10-QPeriod: Q3 FY2026

MCKESSON CORP Quarterly Report for Q3 Ended Dec 31, 2025

Filed February 4, 2026For Securities:MCK

Summary

McKesson Corporation reported strong financial performance for the period ending December 30, 2025. Total revenues saw a significant increase of 11% for the quarter and 15% for the nine-month period compared to the prior year, driven by robust growth in the North American Pharmaceutical and Oncology & Multispecialty segments. Diluted earnings per share (EPS) also showed substantial improvement, rising to $9.59 for the quarter and $24.73 for the nine months, reflecting a 38% and 57% increase, respectively. The company completed two strategic acquisitions during the period: PRISM Vision Holdings, LLC for $875 million and Community Oncology Revitalization Enterprise Ventures, LLC for $2.5 billion, both aimed at strengthening its Oncology & Multispecialty segment. These acquisitions, along with a renewed focus on operational efficiencies, are expected to contribute to future growth. McKesson also continued its capital return program, repurchasing $2.1 billion in common stock and increasing its quarterly dividend to $0.82 per share.

Financial Highlights

51 data points
Beta

Revenue

$106.16B

3.5% Gross Margin

Net Income

$1.19B

1.1% Net Margin

EPS (Diluted)

$9.59

Total Assets

$84.19B

Cash & Equivalents

$2.96B

Free Cash Flow

$1.12B

Financial Statements
Beta
Revenue$106.16B
Cost of Revenue$102.47B
Gross Profit$3.69B
SG&A Expenses$2.03B
Operating Expenses$2.07B
Operating Income$1.62B
Net Income$1.19B
EPS (Basic)$9.63
EPS (Diluted)$9.59
Shares Outstanding (Basic)123.20M
Shares Outstanding (Diluted)123.70M

Key Highlights

  • 1Revenues increased by 11% year-over-year to $106.2 billion for the three months ended December 31, 2025, and by 15% to $307.1 billion for the nine months ended December 31, 2025.
  • 2Diluted EPS attributable to McKesson Corporation rose to $9.59 for the quarter and $24.73 for the nine months, marking significant year-over-year increases of 38% and 57%, respectively.
  • 3The company completed two significant acquisitions: PRISM Vision Holdings, LLC for $875 million and Core Ventures for $2.5 billion, both bolstering its Oncology & Multispecialty segment.
  • 4Gross profit increased by 12% for the quarter and 8% for the nine months, indicating improved profitability on sales.
  • 5Total operating expenses remained flat year-over-year for the quarter and decreased by 6% for the nine months, demonstrating effective cost management.
  • 6McKesson returned $2.4 billion to shareholders during the nine-month period through $2.1 billion in share repurchases and $280 million in dividend payments.
  • 7The company's long-term litigation liabilities related to opioid claims decreased to $5.7 billion from $6.4 billion at the prior year-end.

Frequently Asked Questions

McKesson's revenue growth was primarily driven by market expansion in its North American Pharmaceutical segment, including increased volumes from retail national account customers. Growth in the Oncology & Multispecialty segment, particularly from higher specialty pharmaceutical sales, also contributed significantly.

The acquisitions of PRISM Vision Holdings, LLC and Community Oncology Revitalization Enterprise Ventures, LLC were completed during the period. These strategic moves are expected to enhance McKesson's capabilities and market position within the Oncology & Multispecialty segment and are expected to contribute to future revenue and profit growth.

McKesson's total estimated litigation liabilities for opioid-related claims decreased to $5.7 billion as of December 31, 2025, from $6.4 billion at March 31, 2025. This reduction reflects ongoing settlements and payments made related to various agreements with governmental entities, Native American tribes, and certain non-governmental plaintiffs.

McKesson has demonstrated effective expense management, with total operating expenses remaining flat for the quarter and decreasing by 6% for the nine months year-over-year. This is supported by ongoing initiatives to modernize its technology service operating model and streamline organizational efforts, aimed at improving operating efficiency and realizing long-term sustainable growth.