McKesson Corporation
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Item 1. Business.
INDEX TO BUSINESS
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General
McKesson Corporation together with its subsidiaries (collectively, the “Company,” “McKesson,” “we,” “our,” or “us” and other similar pronouns), which traces its business roots to 1833, is a diversified healthcare services leader dedicated to advancing health outcomes for patients everywhere. Our teams partner with biopharma companies, care providers, pharmacies, manufacturers, governments, and others to deliver insights, products, and services to help make quality care more accessible and affordable.
The Company’s fiscal year begins on April 1 and ends on March 31. Unless otherwise noted, all references in this document to a particular year refer to the Company’s fiscal year. The Company was incorporated on July 7, 1994 in the State of Delaware.
Our Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, and amendments to those reports filed or furnished pursuant to Section 13(a) or 15(d) of the Securities Exchange Act of 1934 (the “Exchange Act”), are available free of charge on the Company’s website (www.mckesson.com under the “Investors — Financials — SEC Filings” caption) as soon as reasonably practicable after such material is electronically filed with, or furnished to, the Securities and Exchange Commission (“SEC”). The content on any website referred to in this Annual Report on Form 10-K (“Annual Report”) is not incorporated by reference into this report, unless expressly noted otherwise. The SEC maintains a website that contains reports, proxy and information statements, and other information regarding issuers, including the Company, that file electronically with the SEC. The address of the website is www.sec.gov.
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McKESSON CORPORATION
Business Segments
Commencing in the second quarter of fiscal 2026, we implemented a new segment reporting structure which resulted in four reportable segments: North American Pharmaceutical, Oncology & Multispecialty, Prescription Technology Solutions, and Medical-Surgical Solutions. Our former Norwegian operations were included in Other. All prior segment information has been recast to reflect the Company’s new segment structure and current period presentation.
Our North American Pharmaceutical segment distributes branded, generic, specialty, biosimilar and over-the-counter (“OTC”) pharmaceutical drugs, and other healthcare-related products to customers in the United States (“U.S.”) and Canada. In addition, the segment sells financial, operational, and clinical solutions to pharmacies (retail, hospital, alternate sites) and provides consulting, outsourcing, technological, and other services. The U.S. distribution operations were previously included in the former U.S. Pharmaceutical reportable segment, and the Canadian operations were previously included in the former International reportable segment.
Our Oncology & Multispecialty segment includes provider solutions that encompass specialty drug distribution, group purchasing organizations, infusion services, direct to patient pharmacy capabilities, InspiroGene™ cell and gene therapy services, technology solutions, practice consulting services, and vaccine distribution. In addition, the segment supports the U.S. Oncology Network, one of the largest networks of physician-led, integrated, community-based oncology practices dedicated to advancing high-quality, evidence-based cancer care in the U.S. The segment also includes PRISM Vision Holdings, LLC (“PRISM Vision”); which drives patient outcomes in a retina and ophthalmology setting. Combined with Sarah Cannon Research Institute (“SCRI”) and our technology business, Ontada, this segment provides research, insights, technologies, and services that address and improve cancer and specialty care. This segment was previously reflected in the former U.S. Pharmaceutical reportable segment.
Our Prescription Technology Solutions segment helps solve medication access, affordability, and adherence challenges for patients by working across healthcare to connect patients, pharmacies, providers, pharmacy benefit managers, health plans, and biopharma companies. Prescription Technology Solutions serves our biopharma and life sciences partners, delivering innovative solutions that help people get the medicine they need to live healthier lives. Prescription Technology Solutions offers technology services, which includes electronic prior authorization, prescription price transparency, benefit insight, dispensing support services, and patient enrollment, in addition to third-party logistics and wholesale distribution support designed to benefit stakeholders.
Our Medical-Surgical Solutions segment is a leading provider of medical-surgical supplies, laboratory equipment, and pharmaceutical distribution, logistics, and other services to non-acute settings in the U.S. These include healthcare providers operating in ambulatory care environments, such as physician offices, surgery centers, and hospital reference labs, as well as extended care settings, including nursing homes, hospice and home health care agencies, government markets, and online marketplaces and retailers. This segment offers more than 270,000 national brand medical-surgical products as well as its own line of more than 4,000 high-quality products through a network of distribution centers in the U.S. During fiscal 2026, we announced our intention to separate this segment into an independent company. As a part of the separation strategy, on April 20, 2026, we announced a definitive agreement under which funds managed by affiliates of Apollo Global Management, Inc. (“Apollo Funds”) will acquire approximately 13% minority ownership interest in our Medical‑Surgical Solutions segment through an investment of approximately $1.25 billion in the segment’s convertible preferred equity. This transaction is subject to regulatory approvals and customary closing conditions.
Our former Norwegian operations, which provided distribution and services to wholesale and retail customers in Norway where we owned, partnered, or franchised with retail pharmacies, were included in Other. During fiscal 2026, we completed the sale of our businesses in Norway. Refer to Financial Note 2, “Business Acquisitions and Divestitures,” to the consolidated financial statements included in this Annual Report for more information.
North American Pharmaceutical Segment:
Our North American Pharmaceutical segment provides distribution and logistics services for branded, generic, specialty, biosimilar, and OTC pharmaceutical drugs along with other healthcare-related products to customers in the U.S. and Canada. This business provides solutions and services to pharmacies, hospitals, pharmaceutical manufacturers, physicians, payors, and patients. We also source generic pharmaceutical drugs through our ClarusONE Sourcing Services LLP joint venture with Walmart Inc. (“ClarusONE”).
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Financial statements
data from SEC XBRL filings. Values are as-reported; restatements supersede originals. Values reported in .
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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.
INDEX TO MANAGEMENT’S DISCUSSION AND ANALYSIS
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GENERAL
Management’s discussion and analysis of financial condition and results of operations, referred to as the “Financial Review,” is intended to assist the reader in the understanding and assessment of significant changes and trends related to the results of operations and financial position of McKesson Corporation together with its subsidiaries (collectively, the “Company,” “McKesson,” “we,” “our,” or “us,” and other similar pronouns). This discussion and analysis should be read in conjunction with the condensed consolidated financial statements and accompanying financial notes in Item 1 of Part I of this Quarterly Report on Form 10-Q (“Quarterly Report”) and in Item 8 of Part II of our Annual Report on Form 10-K for the fiscal year ended March 31, 2026 previously filed with the Securities and Exchange Commission (the “SEC”) on May 8, 2026 (“2026 Annual Report”).
Our fiscal year begins on April 1 and ends on March 31. Unless otherwise noted, all references to a particular year refer to our fiscal year.
Certain statements in this report constitute forward-looking statements. See “Cautionary Notice About Forward-Looking Statements” included in this Quarterly Report.
Overview of Our Business:
We are a diversified healthcare services leader dedicated to advancing health outcomes for patients everywhere. Our teams partner with biopharma companies, care providers, pharmacies, manufacturers, governments, and others to deliver insights, products, and services to help make quality care more accessible and affordable.
We implemented a new segment reporting structure commencing in the second quarter of fiscal 2026, which resulted in four reportable segments: North American Pharmaceutical, Oncology & Multispecialty, Prescription Technology Solutions, and Medical-Surgical Solutions. Our former Norwegian operations were included in Other. All prior segment information has been recast to reflect our new segment structure and current period presentation. Our organizational structure also includes Corporate, which consists of income and expenses associated with administrative functions and projects, as well as the results of certain investments. The factors for determining the reportable segments include the manner in which management evaluates the performance of the Company combined with the nature of individual business activities. We evaluate the performance of our reportable segments on a number of measures, including revenues and operating profit before interest expense and income taxes.
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The following summarizes our four reportable segments. Refer to Financial Note 13, “Segments of Business,” to the accompanying condensed consolidated financial statements included in this Quarterly Report for further information regarding our reportable segments.
•North American Pharmaceutical segment provides distribution and logistics services for branded, generic, specialty, biosimilar, and over-the-counter pharmaceutical drugs along with other healthcare-related products to customers in the United States (“U.S.”) and Canada. In addition, the segment sells financial, operational, and clinical solutions to pharmacies (retail, hospital, alternate sites) and provides consulting, outsourcing, technological, and other services.
•Oncology & Multispecialty segment includes provider solutions that encompass specialty drug distribution, group purchasing organizations, infusion services, direct to patient pharmacy capabilities, cell and gene therapy services with InspiroGene, technology solutions, practice consulting services, and vaccine distribution. In addition, the segment supports The U.S. Oncology Network, one of the largest networks of physician-led, integrated, community-based oncology practices dedicated to advancing high-quality, evidence-based cancer care in the U.S., and includes PRISM Vision Holdings, LLC (“PRISM Vision”), which drives patient outcomes in a retina and ophthalmology setting. Combined with Sarah Cannon Research Institute and our technology business, Ontada, this segment provides research, insights, technologies, and services that address and improve cancer and specialty care.
•Prescription Technology Solutions segment combines automation and our ability to navigate the healthcare ecosystem to connect patients, pharmacies, providers, pharmacy benefit managers, health plans, and biopharma companies to address patients’ medication access, affordability, and adherence challenges. Prescription Technology Solutions offers technology services, which includes electronic prior authorization, prescription price transparency, benefit insight, dispensing support services, and patient enrollment, in addition to third-party logistics, and wholesale distribution support across various therapeutic categories and temperature ranges to biopharma customers throughout the product lifecycle.
•Medical-Surgical Solutions segment provides medical-surgical, laboratory, and pharmaceutical distribution, logistics, and other services to U.S. healthcare providers operating in the non-acute settings. These include ambulatory care environments, such as physician offices, surgery centers, and hospital reference labs, as well as extended care settings, including nursing homes, hospice and home health care agencies, government facilities, and online marketplaces and retailers. This segment offers national brand medical-surgical products as well as our own line of more than 4,000 high-quality products through a network of distribution centers within the U.S. During fiscal 2026, we announced our intention to separate this segment into an independent company. As a part of the separation strategy, on June 1, 2026, we completed a transaction under which funds managed by affiliates of Apollo Global Management, Inc. (“Apollo Funds”) acquired an approximately 13% minority ownership interest in our Medical‑Surgical Solutions segment through an investment of approximately $1.25 billion in the segment’s convertible preferred equity. We recognized a redeemable noncontrolling interest associated with the divested portion of the Medical‑Surgical Solutions segment. We retain operating control and majority ownership of Medical-Surgical Solutions and continue to consolidate this segment into our consolidated financial statements.
Executive Summary:
The following summary provides highlights and key factors that impacted our business, operating results, financial condition, and liquidity for the three months ended June 30, 2026, as well as other material developments:
•For the three months ended June 30, 2026 compared to the prior year, revenues increased by 8%, gross profit increased by 12%, total operating expenses increased by 5%, and other income, net increased by 3%. Refer to the “Overview of Consolidated Results” section below for an analysis of these changes;
•Diluted earnings per common share attributable to McKesson Corporation decreased to $5.15 from $6.25 for the three months ended June 30, 2026 compared to the respective prior year period;
•In the first quarter of 2027, certain of our subsidiaries within the Medical-Surgical Solutions segment entered into, and then amended, a syndicated credit agreement for: a $750 million principal senior secured term loan due in 2031, a $250 million principal senior secured term loan due in 2028; a $2.25 billion senior secured term loan due 2032, for total proceeds received, net of discounts and debt offering expenses, of $3.2 billion; and a $1.0 billion senior secured revolving credit facility scheduled to mature in April 2031. Refer to Financial Note 8, “Debt and Financing Activities,” to the accompanying condensed consolidated financial statements in this Quarterly Report for additional information;
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•On April 24, 2026, we terminated our 2022 revolving credit facility and our 364-Day credit facility and entered into a new Credit Agreement (the “2026 Credit Facility”) that provides a syndicated $5.0 billion senior unsecured credit facility. The 2026 Credit Facility matures in 2031. Refer to Financial Note 8, “Debt and Financing Activities,” to the accompanying condensed consolidated financial statements in this Quarterly Report for additional information;
•As a part of our intention to separate our Medical-Surgical Solutions business into an independent company, on June 1, 2026, Apollo Funds invested approximately $1.25 billion for convertible preferred equity of Medical-Surgical Solutions business to acquire an approximately 13% interest in the business;
•On April 29, 2026, our Board of Directors (the “Board”) approved the Company to repurchase up to an additional $5.0 billion shares of common stock;
•During the three months ended June 30, 2026, we returned $2.6 billion of cash to shareholders through $2.5 billion of common stock repurchases and $102 million of dividend payments. The total remaining authorization outstanding for repurchases of the Company’s common stock at June 30, 2026 was $5.2 billion; and
•On July 21, 2026, the Board raised our quarterly dividend from $0.82 to $0.94 per share of common stock.
Trends and Uncertainties:
Government Policies
As described in “Item 1. Government Regulation” and “Item 1A - Risk Factors” in Part I of our 2026 Annual Report, our industry is highly regulated and is subject to risks and uncertainty caused by the volume and speed of changes to regulatory policies. Changes in regulatory posture and law may result in significant changes in healthcare policy, government funding of healthcare costs, and other laws affecting our operations, but the ultimate outcomes are difficult to predict.
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RESULTS OF OPERATIONS
Overview of Consolidated Results:
| (Dollars in millions, except per share data) | Three Months Ended June 30, | |||||||||||||||||||||||||||||||||
| 2026 | 2025 | Change | ||||||||||||||||||||||||||||||||
| Revenues | $ | 105,380 | $ | 97,827 | 8 | % | ||||||||||||||||||||||||||||
| Gross profit | 3,685 | 3,279 | 12 | |||||||||||||||||||||||||||||||
| Gross profit margin | 3.50 | % | 3.35 | % | 15 | bp | ||||||||||||||||||||||||||||
| Total operating expenses | $ | (2,366) | $ | (2,243) | 5 | % | ||||||||||||||||||||||||||||
| Total operating expenses as a percentage of revenues | 2.25 | % | 2.29 | % | (4) | bp | ||||||||||||||||||||||||||||
| Other income, net | $ | 66 | $ | 64 | 3 | % | ||||||||||||||||||||||||||||
| Interest expense | (77) | (49) | 57 | |||||||||||||||||||||||||||||||
| Income before income taxes | 1,308 | 1,051 | 24 | |||||||||||||||||||||||||||||||
| Income tax expense | (276) | (220) | 25 | |||||||||||||||||||||||||||||||
| Reported income tax rate | 21.1 | % | 20.9 | % | 20 | bp | ||||||||||||||||||||||||||||
| Net income | 1,032 | 831 | 24 | |||||||||||||||||||||||||||||||
| Net income attributable to noncontrolling interests | (418) | (47) | 789 | |||||||||||||||||||||||||||||||
| Net income attributable to McKesson Corporation | $ | 614 | $ | 784 | (22) | % | ||||||||||||||||||||||||||||
| Diluted earnings per common share attributable to McKesson Corporation | $ | 5.15 | $ | 6.25 | (18) | % | ||||||||||||||||||||||||||||
| Weighted-average diluted common shares outstanding | 119.2 | 125.5 | (5) | % | ||||||||||||||||||||||||||||||
Any percentage changes displayed above which are not meaningful are displayed as zero percent.
bp - basis point
Revenues
Revenues increased for the three months ended June 30, 2026 compared to the same prior year period, primarily due to market growth in our North American Pharmaceutical segment, including higher volumes from institutional healthcare providers and retail national account customers. Market growth includes growing drug utilization and newly launched products, partially offset by branded pharmaceutical price decreases and branded to generic drug conversion. Revenue growth was also favorably impacted by growth in our Oncology & Multispecialty segment primarily due to higher specialty pharmaceutical sales.
Gross Profit
Gross profit increased for the three months ended June 30, 2026 compared to the same prior year period primarily due to growth in our North American Pharmaceutical segment, including higher volumes from retail national account customers and institutional healthcare providers, and growth in our Oncology & Multispecialty segment, driven by growth of specialty pharmaceuticals and the addition of providers in practice management.
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Total Operating Expenses
A summary of the components of our total operating expenses for the three months ended June 30, 2026 and 2025 is as follows:
•Selling, distribution, general, and administrative expenses (“SDG&A”): consists of personnel costs, transportation costs, depreciation and amortization, lease costs, professional fee expenses, administrative expenses, provision for bad debts and related recoveries, remeasurement charges to fair value less costs to sell, and other general charges.
•Claims and litigation charges, net: These charges include adjustments for estimated probable settlements related to our controlled substance monitoring and reporting, and opioid-related claims, as well as any applicable income items or credit adjustments due to subsequent changes in estimates. Legal fees to defend claims, which are expensed as incurred, are included within SDG&A.
•Restructuring, impairment, and related charges, net: Charges recorded under this component include those incurred for programs in which we change our operations, the scope of a business undertaken by our business units, or the manner in which that business is conducted, as well as long-lived asset impairments.
| Three Months Ended June 30, | ||||||||||||||||||||||||||||||||||
| (Dollars in millions) | 2026 | 2025 | Change | |||||||||||||||||||||||||||||||
| Selling, distribution, general, and administrative expenses | $ | 2,264 | $ | 2,196 | 3 | % | ||||||||||||||||||||||||||||
| Claims and litigation charges, net | (34) | — | — | |||||||||||||||||||||||||||||||
| Restructuring, impairment, and related charges, net | 136 | 47 | 189 | |||||||||||||||||||||||||||||||
| Total operating expenses | $ | 2,366 | $ | 2,243 | 5 | % | ||||||||||||||||||||||||||||
| Percent of revenues | 2.25 | % | 2.29 | % | (4) | bp | ||||||||||||||||||||||||||||
Any percentage changes displayed above which are not meaningful are displayed as zero percent.
bp - basis point
For the three months ended June 30, 2026, total operating expenses increased and total operating expenses as a percentage of revenues decreased compared to the same prior year period. Total operating expenses were impacted by the following significant items:
•SDG&A for the three months ended June 30, 2026 increased due to increased operating expenses to support higher volumes and includes net charges of $68 million related to our planned separation of the Medical-Surgical Solutions business;
•SDG&A for the three months ended June 30, 2025 includes a provision for bad debts of $189 million related to the bankruptcy of our customer Rite Aid Corporation (including certain of its subsidiaries, “Rite Aid”).
•Claims and litigation charges, net primarily consists of a credit of $34 million for the three months ended June 30, 2026 related to our estimated liability for opioid-related claims as discussed in more detail in Financial Note 11, “Commitments and Contingent Liabilities,” to the accompanying condensed consolidated financial statements included in this Quarterly Report;
•Restructuring, impairment, and related charges, net were $136 million and $47 million for the three months ended June 30, 2026 and 2025, respectively, as discussed below under “Restructuring Initiatives”;
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Goodwill Impairment
We evaluate goodwill for impairment on an annual basis in the first fiscal quarter, and at an interim date if indicators of potential impairment exist. The annual impairment testing performed in fiscal 2027 and fiscal 2026 did not indicate any impairment of goodwill, and no goodwill impairment charges were recorded during the three months ended June 30, 2026 and 2025. However, other risks, expenses, and future developments, such as government actions, increased regulatory uncertainty, and material changes in key market assumptions, limit our ability to estimate projected cash flows, which could adversely affect the fair value of various reporting units in future periods.
For additional disclosure of our policy regarding goodwill, refer to the “Critical Accounting Estimates” section within Item 7 - Management’s Discussion and Analysis of Financial Condition and Results of Operations in Part II of our 2026 Annual Report.
Restructuring Initiatives
We recorded restructuring, impairment, and related charges of $136 million and $47 million for the three months ended June 30, 2026 and 2025, respectively. These charges were included in “Restructuring, impairment, and related charges, net” in the Condensed Consolidated Statements of Operations.
During the first quarter of fiscal 2027, we approved multi-year initiatives within Corporate to further optimize its operating model and align certain enterprise support functions with our long-term strategic priorities. These initiatives include organizational changes, process enhancements, and the implementation of automation solutions designed to improve efficiency and productivity. We anticipate total charges of approximately $230 million to $310 million, consisting primarily of severance and employee-related costs and exit-related costs. We recorded immaterial charges associated with these initiatives during the first quarter of fiscal 2027. These programs are expected to be substantially complete by the end of fiscal 2028.
During the fourth quarter of fiscal 2026, we approved an initiative within our Prescription Technology Solutions segment to increase operational efficiencies and cost optimization efforts, with the intent of aligning with our long-term strategy. This initiative includes headcount reductions, the exit or downsizing of certain facilities, and other costs. We anticipate total charges between $200 million and $250 million, consisting primarily of employee severance and other employee-related costs, and facility and other exit-related costs, including long-lived asset impairments. We recorded charges of $61 million in the first quarter of fiscal 2027 associated with this initiative, which primarily includes asset impairments as well as severance and other employee-related costs. This program is anticipated to be substantially complete by the end of fiscal 2029.
During the second quarter of fiscal 2025, we approved enterprise-wide initiatives to modernize and accelerate our technology service operating model, which were intended to improve business continuity, compliance, operating efficiency and advance investments to streamline the organization. These initiatives include cost reduction efforts and support other rationalization efforts within Corporate, and the Medical-Surgical Solutions and North American Pharmaceutical segments to help realize long-term sustainable growth. We anticipate total charges related to these initiatives of $650 million to $700 million, consisting primarily of employee severance and other employee-related costs as well as facility, exit, and other related costs, including long-lived asset impairments. These programs are anticipated to be substantially complete in fiscal 2028. We recorded charges of $45 million and $38 million for the three months ended June 30, 2026 and 2025, respectively, related to these initiatives, which primarily includes facility exit and other related costs as well as severance and other employee-related costs.
Refer to Financial Note 3, “Restructuring, Impairment, and Related Charges, Net,” to the accompanying condensed consolidated financial statements included in this Quarterly Report for further information on our restructuring initiatives.
Other Income, Net
Other income, net was flat for the three months ended June 30, 2026 compared to the same prior year period.
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Interest Expense
Interest expense increased for the three months ended June 30, 2026 compared to the same prior year period due to interest from increased average balances of the Company’s loan portfolio in fiscal 2027, primarily driven by the MMS Credit Agreement. Interest expense may fluctuate based on timing, amounts, and interest rates of term debt repaid and new term debt issued, as well as amounts incurred associated with financing fees. Refer to Financial Note 8, “Debt and Financing Activities,” to the accompanying condensed consolidated financial statements included in this Quarterly Report for more information.
Income Tax Expense
For the three months ended June 30, 2026 and 2025, we recorded income tax expense of $276 million and $220 million, respectively. Our income tax rates were 21.1% and 20.9% for the three months ended June 30, 2026 and 2025, respectively. Fluctuations in our reported income tax rates are primarily due to changes in our business mix of earnings among various taxing jurisdictions and discrete tax items recognized in the quarters. Refer to Financial Note 4, “Income Taxes,” to the accompanying condensed consolidated financial statements included in this Quarterly Report for more information.
Net Income Attributable to Noncontrolling Interests
Net income attributable to noncontrolling interests for the three months ended June 30, 2026 and 2025 primarily represents the proportionate results of third-party equity interests in ClarusONE Sourcing Services LLP, Vantage Oncology Holdings, LLC, and SCRI Oncology, LLC.
Noncontrolling interests with redemption features, such as put rights, that are not solely within our control are considered redeemable noncontrolling interests, primarily related to our acquisitions of Core Ventures and PRISM Vision and sale of an approximately 13% noncontrolling interest in our Medical-Surgical Solutions business. On a quarterly basis, we determine the redemption value of the redeemable noncontrolling interests, which resulted in an adjustment to redemption value for the redeemable noncontrolling interests for the three months ended June 30, 2026 recorded within “Net income attributable to noncontrolling interests”.
Refer to Financial Note 5, “Redeemable Noncontrolling Interests and Noncontrolling Interests,” to the accompanying condensed consolidated financial statements included in this Quarterly Report for more information on changes to our redeemable noncontrolling interests and noncontrolling interests during the first three months of fiscal 2027.
The increase in net income attributable to noncontrolling interests was primarily driven by higher volumes in our ClarusONE joint venture and contributions from Core Ventures. Net income attributable to noncontrolling interest was also impacted by charges of $293 million for Medical-Surgical Solutions and $81 million for Core Ventures to remeasure the respective redeemable noncontrolling interests to redemption value.
Net Income Attributable to McKesson Corporation
Net income attributable to McKesson Corporation was $614 million and $784 million for the three months ended June 30, 2026 and 2025, respectively. Diluted earnings per common share attributable to McKesson Corporation was $5.15 and $6.25 for the three months ended June 30, 2026 and 2025, respectively. Our diluted earnings per share includes the cumulative effects of share repurchases during each period.
Weighted-Average Diluted Common Shares Outstanding
Diluted earnings per common share was calculated based on a weighted-average number of shares outstanding of 119.2 million and 125.5 million for the three months ended June 30, 2026 and 2025, respectively. Weighted-average diluted shares outstanding for the three months ended June 30, 2026 decreased from the same prior year period primarily due to the cumulative effect of share repurchases, as discussed in the “Share Repurchases Plans” section of this Financial Review.
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Overview of Segment Results:
Segment Revenues:
| Three Months Ended June 30, | ||||||||||||||||||||||||||||||||
| (Dollars in millions) | 2026 | 2025 | Change | |||||||||||||||||||||||||||||
| Segment revenues | ||||||||||||||||||||||||||||||||
| North American Pharmaceutical | $ | 86,773 | $ | 82,729 | 5 | % | ||||||||||||||||||||||||||
| Oncology & Multispecialty | 14,222 | 10,658 | 33 | |||||||||||||||||||||||||||||
| Prescription Technology Solutions | 1,566 | 1,434 | 9 | |||||||||||||||||||||||||||||
| Medical-Surgical Solutions | 2,819 | 2,701 | 4 | |||||||||||||||||||||||||||||
| Other | — | 305 | (100) | |||||||||||||||||||||||||||||
| Total revenues | $ | 105,380 | $ | 97,827 | 8 | % | ||||||||||||||||||||||||||
Any percentage changes displayed above which are not meaningful are displayed as zero percent.
North American Pharmaceutical
Three Months Ended June 30, 2026 vs. 2025
North American Pharmaceutical revenues for the three months ended June 30, 2026 increased $4.0 billion or 5% compared to the same prior year period. Within the segment, sales in the U.S. increased $3.7 billion primarily due to higher volumes from institutional and retail national account customers partially offset by branded pharmaceutical price decreases and branded to generic drug conversions.
Oncology & Multispecialty
Three Months Ended June 30, 2026 vs. 2025
Oncology & Multispecialty revenues for the three months ended June 30, 2026 increased $3.6 billion or 33% compared to the same prior year period primarily driven by higher specialty pharmaceutical sales in provider solutions.
Prescription Technology Solutions
Three Months Ended June 30, 2026 vs. 2025
Prescription Technology Solutions revenues for the three months ended June 30, 2026 increased $132 million or 9% compared to the same prior year period primarily due to increased volumes from third-party logistics.
Medical-Surgical Solutions
Three Months Ended June 30, 2026 vs. 2025
Medical-Surgical Solutions revenues for the three months ended June 30, 2026 increased $118 million or 4% compared to the same prior year period. Within the segment, sales to extended care customers increased $79 million and sales to ambulatory care customers increased $35 million driven by underlying business growth.
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Other Segment Expense, Segment Operating Profit and Corporate Expenses, Net:
| Three Months Ended June 30, | ||||||||||||||||||||||||||||||||||
| (Dollars in millions) | 2026 | 2025 | Change | |||||||||||||||||||||||||||||||
Other segment expense, net (1) | ||||||||||||||||||||||||||||||||||
North American Pharmaceutical (2) | $ | 85,870 | $ | 82,135 | 5 | % | ||||||||||||||||||||||||||||
| Oncology & Multispecialty | 13,897 | 10,446 | 33 | |||||||||||||||||||||||||||||||
Prescription Technology Solutions (3) | 1,340 | 1,181 | 13 | |||||||||||||||||||||||||||||||
Medical-Surgical Solutions (4) | 2,697 | 2,480 | 9 | |||||||||||||||||||||||||||||||
| Other | — | 292 | (100) | |||||||||||||||||||||||||||||||
| Total other segment expense, net | $ | 103,804 | $ | 96,534 | 8 | % | ||||||||||||||||||||||||||||
| Segment operating profit | ||||||||||||||||||||||||||||||||||
| North American Pharmaceutical | $ | 903 | $ | 594 | 52 | % | ||||||||||||||||||||||||||||
| Oncology & Multispecialty | 325 | 212 | 53 | |||||||||||||||||||||||||||||||
| Prescription Technology Solutions | 226 | 253 | (11) | |||||||||||||||||||||||||||||||
| Medical-Surgical Solutions | 122 | 221 | (45) | |||||||||||||||||||||||||||||||
| Other | — | 13 | (100) | |||||||||||||||||||||||||||||||
| Subtotal | 1,576 | 1,293 | 22 | |||||||||||||||||||||||||||||||
Corporate expenses, net (5) | (191) | (193) | (1) | |||||||||||||||||||||||||||||||
| Interest expense | (77) | (49) | 57 | |||||||||||||||||||||||||||||||
| Income before income taxes | $ | 1,308 | $ | 1,051 | 24 | % | ||||||||||||||||||||||||||||
| Segment operating profit margin | ||||||||||||||||||||||||||||||||||
| North American Pharmaceutical | 1.04 | % | 0.72 | % | 32 | bp | ||||||||||||||||||||||||||||
| Oncology & Multispecialty | 2.29 | 1.99 | 30 | |||||||||||||||||||||||||||||||
| Prescription Technology Solutions | 14.43 | 17.64 | (321) | |||||||||||||||||||||||||||||||
| Medical-Surgical Solutions | 4.33 | 8.18 | ||||||||||||||||||||||||||||||||
Recent insider activity
| Date | Insider | Role | Action | Shares | Price | Value |
|---|---|---|---|---|---|---|
| 2026-08-10 | Lerman Bradley E | Director | Sell | -301 | $892.33 | -$268,590 |
| 2026-07-07 | TYLER BRIAN S. | Chief Executive Officer | Sell | -8,463 | $793.56 | -$6,715,898 |
| 2026-06-17 | TYLER BRIAN S. | Chief Executive Officer | Sell | -8,463 | $775.13 | -$6,559,925 |
| 2026-06-09 | TYLER BRIAN S. | Chief Executive Officer | Sell | -4,929 | $763.00 | -$3,760,827 |
| 2026-06-05 | Rutledge Napoleon B JR | SVP, Controller & CAO | Sell | -133 | $764.00 | -$101,612 |
| 2026-06-02 | Rodgers Thomas L | EVP, Chief Strategy & BDO | Sell | -699 | $735.27 | -$513,954 |
| 2026-06-01 | Rodgers Thomas L | EVP, Chief Strategy & BDO | Sell | -123 | $735.50 | -$90,466 |
| 2026-06-01 | Smith LeAnn B | EVP & Chief HR Officer | Sell | -1,810 | $735.50 | -$1,331,255 |
| 2026-05-26 | Lau Michele | EVP and Chief Legal Officer | Sell | -3,550 | $761.09 | -$2,701,870 |
| 2026-05-26 | Rodgers Thomas L | EVP, Chief Strategy & BDO | Sell | -2,388 | $761.09 | -$1,817,483 |
Source: SEC Form 4 filings.
Next expected filings
- ~2026-11-05 10-Q expected by 2026-11-09 (in 81 days)
- ~2027-02-03 10-Q expected by 2027-02-07 (in 171 days)
- ~2027-05-08 10-K expected by 2027-05-29 (in 265 days)
- ~2027-08-04 10-Q expected by 2027-08-08 (in 353 days)
Predicted from historical filing cadence; not an SEC commitment.
Recent SEC filings
- 2026-08-05 10-Q Quarterly Report
- 2026-08-05 8-K Earnings Release; Financial Statements and Exhibits
- 2026-07-01 8-K Officer/Director Change; Regulation FD Disclosure; Financial Statements and Exhibits
- 2026-06-12 8-K Material Agreement Entered; Material Financial Obligation; Financial Statements and Exhibits
- 2026-06-12 DEF 14A Proxy Statement
- 2026-05-08 10-K Annual Report
- 2026-05-07 8-K Earnings Release; Financial Statements and Exhibits
- 2026-04-28 8-K Material Agreement Entered; Material Agreement Terminated; Material Financial Obligation; Financial Statements and Exhibits
- 2026-04-06 8-K Material Agreement Entered; Material Financial Obligation; Financial Statements and Exhibits
- 2026-03-05 8-K Officer/Director Change; Financial Statements and Exhibits
- 2026-02-04 10-Q Quarterly Report
- 2026-02-04 8-K Earnings Release; Financial Statements and Exhibits
- 2025-11-06 10-Q Quarterly Report
- 2025-11-05 8-K Earnings Release; Financial Statements and Exhibits
- 2025-09-18 8-K Earnings Release; Other Events; Financial Statements and Exhibits