McKesson Corporation is a leading healthcare services and information technology company that operates through four main segments, focusing on the distribution of pharmaceutical and medical products, which account for the majority of its revenues . The company distributes branded, generic, specialty, biosimilar, and over-the-counter pharmaceutical drugs and healthcare-related products in the United States, and provides practice management, technology, clinical support, and business solutions to specialty practices . McKesson also addresses medication access and affordability challenges, offers medical-surgical supply distribution, and operates internationally in Canada and Europe .
- U.S. Pharmaceutical - Distributes branded, generic, specialty, biosimilar, and over-the-counter pharmaceutical drugs and other healthcare-related products in the United States, and provides practice management, technology, clinical support, and business solutions to community-based oncology and other specialty practices .
- Prescription Technology Solutions (RxTS) - Addresses medication access, affordability, and adherence challenges by connecting patients, pharmacies, providers, pharmacy benefit managers, health plans, and biopharma companies, offering prescription price transparency, benefit insight, dispensing support services, and third-party logistics .
- Medical-Surgical Solutions - Provides medical-surgical supply distribution, logistics, and other services to healthcare providers, including physician offices, surgery centers, nursing homes, hospital reference labs, and home health care agencies, offering national brand medical-surgical products and McKesson's own line of products .
- International - Includes operations in Canada and Europe, providing non-U.S.-based drug distribution services, specialty pharmacy, retail, and infusion care services, with Canadian operations delivering medicines, supplies, and information technology solutions, and European operations focusing on distribution and services in Norway .
You might also like
| Name | Position | External Roles | Short Bio | |
|---|---|---|---|---|
Brian S. Tyler Executive | Chief Executive Officer | Board Member at Republic Services, Inc., IFPW, IFPW Foundation, CEOs Against Cancer | CEO since April 2019, over 25 years at McKesson, extensive leadership roles, Ph.D. in Economics. | View Report → |
Britt J. Vitalone Executive | Executive Vice President and Chief Financial Officer | None | CFO since January 2018, previously held various financial leadership roles at McKesson. | |
LeAnn B. Smith Executive | Executive Vice President and Chief Human Resources Officer | None | Joined McKesson in 2021, previously at Walmart, appointed EVP and CHRO in December 2022. | |
Michele Lau Executive | Executive Vice President and Chief Legal Officer | None | Rejoined McKesson as EVP and Chief Legal Officer on January 1, 2024, extensive legal experience. | |
Thomas L. Rodgers Executive | Executive Vice President, Chief Strategy and Business Development Officer | None | EVP since June 2020, previously Senior VP and Managing Director of McKesson Ventures. | |
Dominic J. Caruso Board | Director | Board member at Kyndryl Holdings, Inc., Trustee of Cystic Fibrosis Foundation | Director since September 2018, retired CFO of Johnson & Johnson, extensive financial expertise. | |
Donald R. Knauss Board | Director | Board member at University of San Diego, Kellanova, Target Corporation | Director since 2014, retired from The Clorox Company, extensive leadership experience. | |
James H. Hinton Board | Director | Operating Partner at Welsh, Carson, Anderson & Stowe | Director since 2022, extensive healthcare operations experience. | |
Kathleen Wilson-Thompson Board | Director | Board member at Tesla, Inc., Wolverine World Wide, Inc., Chair of University of Michigan Alumni Association, NAACP Foundation | Director since 2022, retired EVP and CHRO of Walgreens Boots Alliance, extensive HR experience. | |
Kevin Ozan Board | Director | Board member at Cineworld, The Hershey Company | Director since January 2024, retired from McDonald's Corporation, extensive financial leadership experience. | |
Linda P. Mantia Board | Director | Board member at Ceridian HCM Holding Inc., Maple Leaf Foods Inc., Sunnybrook Health Sciences Centre | Director since 2020, significant experience in financial services and corporate strategy. | |
Maria Martinez Board | Director | Board member at Cue Health Inc. | Director since 2019, former EVP and COO at Cisco Systems, recognized for leadership in technology. | |
Richard H. Carmona Board | Director | Chief of Health Innovations at Canyon Ranch, Inc., Board member at Herbalife Nutrition Ltd., Better Therapeutics, Inc. | Director since 2021, former U.S. Surgeon General, extensive public health and academic experience. | |
Susan R. Salka Board | Director | Member of Women Business Leaders, Women Corporate Directors Foundation, Editorial Advisory Board of Directors & Boards Magazine | Director since 2014, significant leadership experience in healthcare services. | |
W. Roy Dunbar Board | Director | Board member at Duke Energy Corp., Johnson Controls International plc, SiteOne Landscape Supply, Inc. | Director since 2022, former CEO of Network Solutions, extensive technology and operations experience. |
- With the acquisition of Rx Savings Solutions aiming to provide price transparency to employers and employees, how does McKesson plan to leverage this capability to impact drug pricing or influence drug utilization patterns, and what is the long-term strategic vision for integrating this asset into your overall strategy?
- Given the evolving landscape of U.S. retail pharmacies and the closures of many stores, would McKesson consider changing its domestic strategy by owning a virtual pharmacy to capitalize on emerging opportunities, despite previous beliefs about customer conflict and operational challenges?
- As oncology care shifts towards value-based models, how is McKesson adapting its services to support providers in this transition, and what specific initiatives or partnerships are you pursuing to facilitate success in value-based oncology care?
- In light of competitive pressures from companies serving both acute care facilities and alternate sites, especially with large integrated delivery networks (IDNs) owning both assets, how does McKesson plan to address potential market changes and growth opportunities, and is there a need to rethink your approach to the medical distribution market?
- Considering your expansion into specialties like retina and ophthalmology through acquisitions, does McKesson have plans to build comprehensive platforms in other specialty areas similar to your oncology platform, and how do you evaluate the potential for achieving similar success outside of oncology?
Research analysts who have asked questions during MCKESSON earnings calls.
Charles Rhyee
TD Cowen
4 questions for MCK
Daniel Grosslight
Citigroup
4 questions for MCK
Eric Percher
Nephron Research
4 questions for MCK
Lisa Gill
JPMorgan Chase & Co.
4 questions for MCK
Allen Lutz
Bank of America
3 questions for MCK
Elizabeth Anderson
Evercore ISI
3 questions for MCK
George Hill
Deutsche Bank
3 questions for MCK
Kevin Caliendo
UBS
3 questions for MCK
Brian Tanquilut
Jefferies
2 questions for MCK
Eric Coldwell
Robert W. Baird & Co.
2 questions for MCK
Erin Wilson Wright
Morgan Stanley
2 questions for MCK
Michael Cherny
Leerink Partners
2 questions for MCK
Stephen Baxter
Wells Fargo & Company
2 questions for MCK
Erin Wright
Morgan Stanley
1 question for MCK
Stephen Baxter
Wells Fargo
1 question for MCK
Competitors mentioned in the company's latest 10K filing.
| Company | Description |
|---|---|
Considered one of the largest competitors in distribution, wholesaling, and logistics in the pharmaceutical distribution environment in which the U.S. Pharmaceutical and International segments operate. | |
Considered one of the largest competitors in distribution, wholesaling, and logistics in the pharmaceutical distribution environment in which the U.S. Pharmaceutical and International segments operate. |
| Customer | Relationship | Segment | Details |
|---|---|---|---|
CVS Health Corporation | Pharmaceutical distribution partner; extended to June 2027. | All | Revenue: 28% of total consolidated revenues ($308,951 million ) = $86,506 million. Accounts Receivable: 24% of net trade accounts receivable ($21,622 million ) = $5,189 million. |
Notable M&A activity and strategic investments in the past 3 years.
| Company | Year | Details |
|---|---|---|
PRISM Vision Holdings | 2025 | McKesson will acquire an 80% controlling interest in PRISM Vision Holdings for approximately $850 million (cash and debt), with physicians retaining 20%. The acquisition is strategically aimed at expanding McKesson’s retina and ophthalmology services and is expected to be accretive to earnings post-closing. |
Community Oncology Revitalization Enterprise Ventures (Core Ventures) | 2024 | McKesson signed an agreement to acquire a 70% controlling interest in Core Ventures for approximately $2.49 billion in cash, to enhance its oncology platform and integrate the business into its U.S. Pharmaceutical segment, pending regulatory approvals including an FTC review. |
Compile, Inc. | 2024 | Acquired on January 4, 2024, Compile, Inc. is a healthcare data platform that strengthens McKesson’s data capabilities and supports its growth in oncology and biopharma by providing integrated, centralized commercial insights. |
Rx Savings Solutions, LLC | 2022 | Completed on November 1, 2022, the acquisition of Rx Savings Solutions involved an upfront payment of approximately $600 million plus up to $275 million contingent on performance, expanding McKesson's biopharma and payer services within its Prescription Technology Solutions segment. |
Genospace | 2022 | Completed on October 31, 2022, the acquisition of Genospace enhances McKesson’s oncology data and analytics capabilities—especially in precision medicine and clinical trial matching—through a joint venture (with McKesson holding a 51% controlling interest) integrated into the U.S. Pharmaceutical segment. |
Recent press releases and 8-K filings for MCK.
- $24M Series A oversubscribed led by FPV Ventures, with participation from McKesson Ventures, bringing total funding to $35M.
- Capital will support expansion into oncology, scaling a national network of surgeon-owned, AI-powered surgery centers, and advancing OathOS.
- OathOS replaces disparate scheduling, billing, and reporting tools with a unified AI platform that automates the entire surgical journey.
- In its first 12 months, Oath partnered with 150+ surgeons, delivering up to 80% cost savings, a < 0.25% complication rate, and 98.5% patient satisfaction.
- InspiroGene by McKesson released its 2025 Cell and Gene Therapy Report, finding that 60% of oncologists are very familiar with CGTs (up from 55% in 2024) and the average number of patients treated annually increased from 17 to 25.
- Persistent barriers remain: 66% of oncologists and patients view CGTs as “too experimental,” while payers—although 80% see them as safe and effective—cite high upfront costs and limited long-term data; 60% support innovative payment models to mitigate risks.
- The number of qualified U.S. CGT treatment centers was flat year-over-year from 2024 to 2025, indicating slow expansion into community settings.
- The CGT pipeline expanded with 178 oncology-focused drug candidates entering late-stage development in the past year, and emerging early results in lupus, diabetes, and heart failure.
- McKesson reiterated its four strategic pillars: focus on people & culture; expand oncology & multi-specialty and biopharma services; strengthen North American pharmaceutical distribution; and modernize its portfolio of assets.
- For fiscal 2026, the company raised adjusted operating profit growth to 10–14% and EPS to $38.05–38.55, driven by strong specialty performance and disciplined treasury management.
- Segment guidance includes North American Pharma revenue growth of 10–14% and profit growth of 3–7%; Oncology & Multi-Specialty revenue 27–31% and profit 49–53%; Prescription Technology Solutions revenue 9–13% and profit 11–15%; Medical-Surgical profit at the low end of 2–6%.
- Long-term targets are adjusted operating profit CAGRs of 5–8% (North American Pharma), 13–16% (Oncology & Multi-Specialty) and 10–13% (Prescription Technology Solutions), with an updated EPS growth goal of 13–16%.
- Disciplined portfolio management since FY 2020 drove a 9% adjusted operating profit CAGR to over $6 billion, ROIC up 1800 bps, EPS CAGR 17%, $17 billion in share repurchases (reducing shares 19%) and a 13% dividend CAGR since FY 2021.
- McKesson is reorganizing into three core segments—North American Pharmaceutical, Oncology & Multi-specialty, and Prescription Technology Solutions—to simplify operations and focus on high-growth, high-margin businesses.
- Fiscal 2026 guidance was raised, with consolidated adjusted operating profit growth of 10%–14% and adjusted EPS of $38.50–$38.55 (+15%–17% y/y).
- The Medical Surgical Solutions unit is planned for a tax-free separation via IPO by 2027, with a subsequent spin- or split-off to preserve McKesson’s investment-grade rating.
- Since FY20, McKesson’s adjusted operating profit has grown from $3.8 billion to over $6 billion, adjusted EPS CAGR is 17%, and ROIC is up 1,800 bps, all on a balance sheet leveraged at ~2.5×.
- Revised fiscal 2026 outlook includes 10–14% adjusted operating profit growth and 15–17% adjusted EPS growth to $38.05–$38.55, or 17–19% excluding venture gains.
- New segment structure—North American Pharmaceutical, Oncology & Multi-Specialty, and Prescription Technology Solutions—is expected to generate $5.7–$5.9 billion in adjusted operating profit, focusing on high-growth, high-margin businesses.
- Portfolio optimization includes the planned spin-off of Medical-Surgical Solutions by H2 2027, sale of Norway operations, and strategic acquisitions like Florida Cancer Specialists and Prism Vision Group to accelerate oncology and biopharma services growth.
- Since fiscal 2020, McKesson transformed its portfolio—exiting non-core businesses—and achieved a 9% CAGR in adjusted operating profit, 17% CAGR in adjusted EPS, and a 1800 bps increase in ROIC on over $6 billion of operating profit.
- McKesson reaffirmed its four strategic pillars—people and culture, supply-chain resilience, disciplined portfolio management, and oncology/biopharma services—and expects 10% CAGR in adjusted operating profit and 17% CAGR in adjusted EPS through fiscal 2026 based on current outlook.
- A new reporting structure will comprise North American Pharmaceutical, Oncology & Multi-Specialty, and Prescription Technology Solutions segments; Norway operations reclassified as held for sale, and a tax-free spin-off of Medical-Surgical Solutions is targeted by H2 2027.
- Fiscal 2026 consolidated guidance was raised to 10–14% adjusted operating profit growth and $38.05–38.55 adjusted EPS (15–17% growth), with detailed segment revenue and profit growth outlooks reflecting strong specialty and acquisition contributions.
- Since FY 2021, McKesson has deployed $4.2 B in organic investments and $6.3 B in M&A, returned $16.6 B via share repurchases, and generated robust free cash flow while improving ROIC by 1800 bps.
- McKesson raised its fiscal 2026 adjusted EPS guidance to $38.05–$38.55, surpassing analysts’ expectations.
- Company lifted its long-term adjusted EPS growth target to 13–16% from 12–14%, driven by strong performance in oncology, multispecialty care, and biopharma solutions.
- Strategic priorities include strengthening North American pharmaceutical distribution, expanding oncology and biopharma services, and optimizing the portfolio to enhance operating leverage and capital efficiency.
- Despite 17.8% three-year revenue growth and a leading >90% U.S. pharmaceutical wholesale market share, McKesson carries risks from high leverage and a 1.26% operating margin.
- During Investor Day, McKesson raised and narrowed its Fiscal 2026 Adjusted EPS guidance to $38.05–$38.55 from $37.10–$37.90.
- The company increased its long-term Adjusted EPS growth target to 13%–16%, up from 12%–14%.
- Introduced segment-level operating profit growth targets: North American Pharmaceutical 5%–8%, Oncology & Multispecialty 13%–16%, Prescription Technology Solutions 10%–13%.
- Emphasized strategic priorities including strengthening North American Pharmaceutical distribution, modernizing the portfolio, and expanding oncology, multispecialty, and biopharma services platforms.
- McKesson will report under four new segments—North American Pharmaceutical, Oncology & Multispecialty, Prescription Technology Solutions, and Medical-Surgical Solutions—with Norwegian operations included in Other, effective Q2 FY 2026 to reflect CEO resource and performance allocation.
- The company furnished retrospective quarterly segment data for Q1–Q4 FY 2025 and Q1 FY 2026, plus annual results for FY 2025 and FY 2024, in Exhibit 99.1.
- These segment changes did not require restatement of consolidated financial statements or historical earnings per share.
- McKesson announced in May 2025 its intention to spin off Medical-Surgical Solutions and entered an agreement on August 4, 2025 to sell its Norwegian businesses.
- Executive meeting on June 9, 2025: McKesson executives met with investors and analysts to discuss growth strategies, operational performance, and market trends.
- Revised financial outlook: The company increased its full-year Adjusted EPS guidance range to $36.90–$37.70 and reaffirmed its effective tax rate guidance of 17%–19% for FY 2026.