MCK 8-K: Smart Summary

McKesson Corporation reported fiscal 2026 third quarter results for the quarter ended December 31, 2025, with consolidated revenues of $106.2B, up 11% year-over-year. The company raised and narrowed its fiscal 2026 Adjusted Earnings per Diluted Share guidance range to $38.80 to $39.20. McKesson also closed the sale of its Norwegian retail and distribution businesses to NorgesGruppen on January 30, 2026.

• Revenues: $106.2B, +11% YoY (Q3); $307.1B YTD, +15% YoY
• Gross profit: $3.7B, +12% YoY (Q3); $10.5B YTD, +8% YoY
• Operating income: $1.6B, +32% YoY (Q3); $4.1B YTD, +43% YoY
• Net income attributable to McKesson: $1.2B, +35% YoY (Q3); $3.1B YTD, +51% YoY
• GAAP EPS (diluted): $9.59, +$2.64 (+38%) YoY (Q3); $24.73 YTD, +57% YoY
• Adjusted EPS (diluted, Non-GAAP): $9.34, +16% YoY (Q3); $27.46 YTD, +20% YoY
• Adjusted Earnings (Non-GAAP): $1.2B, +14% YoY (Q3); $3.4B YTD, +16% YoY
• Cash flow from operations: $1.2B (Q3); $2.7B YTD (vs. ($1.7B) prior-year YTD, +264%)
• Free Cash Flow (Non-GAAP): $1.1B (Q3); $2.2B YTD (vs. ($2.2B) prior-year YTD, +197%)
• Diluted weighted-average shares outstanding: 123.7 million, -2% YoY (Q3)

• North American Pharmaceutical: Q3 revenues $88.3B, +9% YoY; Adjusted Segment Operating Profit $872M, +6% YoY; driven by increased prescription volumes and specialty product distribution
• Oncology & Multispecialty: Q3 revenues $13B, +37% YoY; Adjusted Segment Operating Profit $366M, +57% YoY; driven by growth in provider solutions and specialty distribution, including acquisition contributions
• Prescription Technology Solutions: Q3 revenues $1.5B, +9% YoY; Adjusted Segment Operating Profit $277M, +18% YoY; driven by higher demand for access solutions
• Medical-Surgical Solutions: Q3 revenues $3B, +1% YoY; Adjusted Segment Operating Profit $265M, -10% YoY; driven by lower volumes in physician office settings and lower illness incidence
• Other: Q3 revenues $335M, +18% YoY; Adjusted Segment Operating Profit $28M, +155% YoY

• Cash and cash equivalents: $3B at December 31, 2025, vs. $5.7B at March 31, 2025
• Long-term debt: $5.4B at December 31, 2025, vs. $4.5B at March 31, 2025; current portion $1.1B
• Proceeds from issuances of long-term debt (YTD): $2B; repayments of long-term debt (YTD): $1.2B
• Share repurchases (YTD): $2.1B (first nine months of fiscal 2026); total shareholder returns YTD: $2.4B including $2.1B of common stock repurchases and $280M of dividend payments
• Dividends declared per share: $0.82 in Q3, +15% YoY; $2.35 YTD, +15% YoY
• Capital expenditures (Q3): $175M; YTD: $560M

• Brian Tyler, chief executive officer
  • "McKesson delivered another strong quarter, extending the momentum we've built across the enterprise and demonstrating the impact of our disciplined execution. Our results highlight the strength of our core distribution businesses and the meaningful progress we are making against our strategic priorities."
  • "As a result of our third quarter performance and operating momentum, we are raising and narrowing our guidance range for fiscal 2026 Adjusted Earnings per Diluted Share to $38.80 to $39.20. These strong outcomes reflect the power of our platforms and the dedication and commitment of Team McKesson, whose focus enables us to execute consistently and deliver high-quality results."

• Fiscal 2026 Adjusted EPS guidance raised and narrowed to $38.80–$39.20, from prior range of $38.35–$38.85
• Guidance range implies 17% to 19% growth compared to prior year
• Guidance includes $0.09 related to year-to-date gains associated with McKesson Ventures' equity investments
• McKesson does not provide forward-looking GAAP EPS guidance due to inability to quantitatively reconcile to GAAP without unreasonable effort
• Additional modeling considerations to be provided in the earnings call presentation