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MCK

McKesson Corporation

MCK

McKesson Corporation • NYSE
$881.12 ▼ -0.29% (-2.59)
Market Cap $110.14 B
52w High $895.58
52w Low $558.13
Dividend Yield 3.28%
P/E 27.55
Volume 362.54K
Outstanding Shares 125.00M

Income Statement

Period Revenue Operating Expense Net Income Net Profit Margin Earnings Per Share EBITDA
Q2-2026 $103.15B ▲ $2.074B ▼ $1.11B ▲ 1.076% ▲ $8.95 ▲ $1.469B ▲
Q1-2026 $97.827B ▲ $2.243B ▲ $784M ▼ 0.801% ▼ $6.28 ▼ $1.257B ▼
Q4-2025 $90.823B ▼ $1.884B ▼ $1.26B ▲ 1.387% ▲ $10.06 ▲ $1.711B ▲
Q3-2025 $95.294B ▲ $1.933B ▼ $879M ▲ 0.922% ▲ $6.98 ▲ $1.446B ▲
Q2-2025 $93.651B $2.401B $241M 0.257% $1.87 $775M

Balance Statement

Period Cash & Short-term Total Assets Total Liabilities Total Equity
Q2-2026 $4.109B ▲ $84.16B ▲ $84.738B ▲ $-1.739B ▲
Q1-2026 $2.418B ▼ $81.311B ▲ $82.174B ▲ $-1.967B ▲
Q4-2025 $5.691B ▲ $75.14B ▲ $76.834B ▲ $-2.074B ▲
Q3-2025 $1.131B ▼ $71.081B ▼ $73.785B ▼ $-3.084B ▼
Q2-2025 $2.509B $72.429B $75.071B $-3.017B

Cash Flow Statement

Period Net Income Cash From Operations Cash From Investing Cash From Financing Net Change Free Cash Flow
Q2-2026 $1.21B ▲ $2.42B ▲ $-24M ▲ $-961M ▼ $1.426B ▲ $2.531B ▲
Q1-2026 $784M ▼ $-918M ▼ $-3.564B ▼ $1.176B ▲ $-3.273B ▼ $-1.029B ▼
Q4-2025 $1.306B ▲ $7.748B ▲ $-224M ▼ $-2.855B ▼ $4.674B ▲ $7.47B ▲
Q3-2025 $928M ▲ $-2.383B ▼ $-136M ▲ $1.298B ▲ $-1.229B ▼ $-2.579B ▼
Q2-2025 $287M $2.1B $-286M $-1.599B $207M $1.882B

Revenue by Products

Product Q3-2025Q4-2025Q1-2026Q2-2026
MedicalSurgical Solutions Segment
MedicalSurgical Solutions Segment
 $2.95Bn ▲$2.85Bn ▼$2.70Bn ▼$2.95Bn ▲
Prescription Technology Solutions
Prescription Technology Solutions
 $1.37Bn ▲$1.34Bn ▼$1.43Bn ▲$1.38Bn ▼
International Segment
International Segment
 $3.86Bn ▲$3.46Bn ▼$3.74Bn ▲$0 ▼
US Pharmaceutical Segment
US Pharmaceutical Segment
 $87.11Bn ▲$83.17Bn ▼$89.95Bn ▲$0 ▼

Five-Year Company Overview

Income Statement

Income Statement McKesson’s income statement shows a business built on very large volumes with thin but steadily improving margins. Revenue has climbed consistently over the last five years, reflecting strong demand and share gains in drug distribution and specialty services. Gross profit has grown along with revenue, suggesting the company is maintaining its pricing power and efficiency despite competitive and regulatory pressures. Operating profit and net income have improved meaningfully after a choppy year earlier in the period that likely reflected one‑time charges or settlements. Earnings per share have risen strongly over time, helped by both higher profits and a shrinking share count. Overall, profitability now looks solid for a distributor, but the business remains sensitive to small changes in margin given the massive revenue base.

Balance Sheet

Balance Sheet The balance sheet shows a large, asset‑heavy distribution platform funded with a mix of debt and negative reported equity. Total assets have grown steadily, driven by working capital and the need to support a huge flow of medicines through the system. Cash levels are healthy for day‑to‑day operations and have generally trended up. Debt has stayed fairly stable rather than ballooning, indicating a controlled use of borrowing. The negative equity position is notable and is likely the result of substantial share repurchases and past charges rather than ongoing operating weakness. This accounting picture does mean there is less of a traditional equity cushion, so investors typically pay close attention to liquidity, cash generation, and the company’s ability to service its obligations.

Cash Flow

Cash Flow Cash flow is a major strength. McKesson regularly converts its accounting profits into solid operating cash, and this has generally improved over time. Free cash flow has been consistently positive, showing that the core business generates more cash than it needs for basic investment in facilities and systems. Capital spending is modest relative to the scale of the company, reflecting the efficiency of its distribution model and heavy use of process technology rather than large, one‑off projects. This combination of steady cash inflow and relatively low capital intensity provides management with flexibility for debt repayment, buybacks, and strategic investments, though it also raises expectations to allocate that cash wisely.

Competitive Edge

Competitive Edge McKesson operates in an oligopolistic U.S. drug distribution market where a handful of players handle the vast majority of volume. Its scale, extensive logistics network, and integrated technology systems give it considerable bargaining power and make it difficult for smaller rivals to compete. High switching costs are a key part of its moat. Pharmacies, hospitals, and clinics build their ordering, inventory management, and even clinical workflows around McKesson’s systems. Shifting to a different distributor can be disruptive and risky, so relationships tend to be long‑term. Deep ties with both manufacturers and providers, plus a strong presence in high‑value specialty and oncology drugs, reinforce its entrenched position. Risks exist in the form of regulatory scrutiny, reimbursement pressure, and the constant need to keep costs extremely low in a thin‑margin business. However, the company’s size and integration into the healthcare system give it a durable competitive footing.

Innovation and R&D

Innovation and R&D McKesson’s “R&D” is less about lab science and more about technology, data, and process innovation. The company has invested heavily in analytics platforms that help providers manage costs and improve supply chains, as well as tools that help drug makers understand real‑world patient and physician behavior. Its oncology‑focused technologies, including specialized electronic health records and the Ontada platform, position McKesson not just as a distributor but as a data and insights partner in the development and delivery of cancer treatments. Automation and robotics in distribution centers, along with investments in AI and secure cloud‑based systems, aim to keep error rates extremely low while boosting efficiency. The strategic emphasis on oncology, specialty drugs, and data‑driven services suggests that future growth is expected to come from higher‑value, tech‑enabled offerings rather than basic volume alone. Execution risk is present, but the direction aligns well with long‑term healthcare trends.

Summary

Overall, McKesson looks like a mature, system‑critical healthcare distributor that has successfully translated its scale into steady growth and improving profitability after some earlier volatility. The income statement shows expanding earnings on rising revenue, while cash flows are strong and consistently positive. The balance sheet features stable debt but negative equity, likely reflecting aggressive capital returns and historic charges rather than a weak current franchise, which puts more focus on ongoing cash generation and risk management. Competitively, McKesson benefits from a powerful moat built on scale, logistics, embedded technology, and high switching costs in an industry with only a few major players. At the same time, it is actively reshaping itself around specialty pharmaceuticals, oncology, and data‑rich technology solutions, using innovation in analytics and automation to move up the value chain. Key things to watch going forward include its ability to sustain margins in a low‑spread business, keep investing in technology and specialty services, manage regulatory and reimbursement pressures, and continue translating its dominant position into durable, high‑quality cash flows.

NEWS

November 5, 2025 · 4:10 PM UTC

McKesson Corporation Reports Fiscal 2026 Second Quarter Results and Raises Full Year Adjusted EPS Guidance

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October 30, 2025 · 8:00 AM UTC

McKesson Corporation Declares Quarterly Dividend

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October 20, 2025 · 8:37 AM UTC

Citius Oncology Signs U.S. Distribution Agreement with McKesson to Support LYMPHIR™ Commercial Launch

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September 23, 2025 · 8:00 AM UTC

McKesson Corporation Highlights Strategic Growth Strategies and Unveils Updated Long-term Financial Targets at Investor Day

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September 18, 2025 · 8:00 AM UTC

McKesson Announces New Organizational Structure

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