01—Abstract
Summary
Summary of the 10-Q filed February 4, 2026. Cited figures are marked; the original filing is the authoritative source.
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 $9.59a 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 billionb in common stock and increasing its quarterly dividend to $0.82 per share.
02—Key points
Key Highlights
- Revenues 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.
- Diluted 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.
- The 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.
- Gross profit increased by 12% for the quarter and 8% for the nine months, indicating improved profitability on sales.
- Total operating expenses remained flat year-over-year for the quarter and decreased by 6% for the nine months, demonstrating effective cost management.
- McKesson returned $2.4 billion to shareholders during the nine-month period through $2.1 billion in share repurchases and $280 million in dividend payments.
- The company's long-term litigation liabilities related to opioid claims decreased to $5.7 billion from $6.4 billion at the prior year-end.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q3 FY2026, McKesson Corp kept $0.01.
- Revenue$106.16B100.0%
- Cost of revenue−$102.47B96.5%
- Gross profit$3.69B3.5%
- Operating costs−$2.07B1.9%
- Operating income$1.62B1.5%
- Interest, other & tax−$433.0M0.4%
- Net income$1.19B1.1%
04—Financials
Financial Highlights
Figures from 10-QQ3 FY2026filed February 4, 2026Financial Statements
Q3 FY2026 against Q3 FY2025
| Line item | Q3 FY2026Q3 FY2025 | Change |
|---|---|---|
| Revenue | $106.16B$95.29B | +11.4% |
| Cost of Revenue | $102.47B$92.01B | +11.4% |
| Gross Profit | $3.69B$3.28B | +12.2% |
| SG&A Expenses | $2.03B$2.03B | +0.1% |
| Operating Expenses | $2.07B$2.06B | +0.3% |
| Operating Income | $1.62B$1.22B | +32.3% |
| Net Income | $1.19B$879.00M | +34.9% |
| EPS (Basic) | $9.63$6.98 | +38.0% |
| EPS (Diluted) | $9.59$6.95 | +38.0% |
| Shares Outstanding (Basic) | 123.20M126.00M | −2.2% |
| Shares Outstanding (Diluted) | 123.70M126.60M | −2.3% |
05—Questions
Frequently Asked Questions
What are the primary drivers of McKesson's revenue growth in this period?
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.
How have the recent acquisitions impacted McKesson's financial performance?
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.
What is the current status of McKesson's opioid litigation liabilities?
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.
How is McKesson managing its expenses and improving operational efficiency?
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.
06—Continue