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    Stephen Baxter • Wells Fargo

    Stephen Baxter's questions to Mckesson Corp (MCK) leadership

    Stephen Baxter's questions to Mckesson Corp (MCK) leadership • Q4 2025

    Question

    Stephen Baxter of Wells Fargo asked for clarification on the drivers behind the significant year-over-year decline in SG&A expenses and the slower gross profit growth observed in the quarter.

    Answer

    CFO Britt Vitalone explained that the primary driver for the SG&A decline was the divestiture of the Canadian Rexall and Well.ca retail businesses. He attributed the slower gross profit growth to a combination of business mix and the impact of those same divestitures, while highlighting the company's overall success in generating operating leverage.

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    Stephen Baxter's questions to Molina Healthcare Inc (MOH) leadership

    Stephen Baxter's questions to Molina Healthcare Inc (MOH) leadership • Q3 2024

    Question

    Stephen Baxter from Wells Fargo asked if the negative pressure from Medicaid acuity shifts has now stabilized or if it's expected to continue into Q4. He also sought to understand what is enabling states to provide large rate updates so quickly given the dynamic claims environment.

    Answer

    CFO Mark Keim explained that some redetermination pressure carried into Q3 due to weighted average math and a couple of states extending their processes, but he does not view these as sustaining dynamics, projecting a more normalized trend for Q4. President and CEO Joe Zubretsky stated that the state rate-setting process itself hasn't changed; it always accounts for acuity shifts. The current shift is simply more dramatic and high-profile, prompting states to react accordingly within their established models.

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