On May 8, 2025, McKesson Corp (MCK, Financial) released its 8-K filing detailing the financial results for the fourth quarter and fiscal year ending March 31, 2025. The company reported impressive growth, with consolidated revenues reaching $90.8 billion for the fourth quarter, marking a 19% increase from the previous year. This performance was below the analyst estimate of $94,297.05 million for the quarter. McKesson's earnings per diluted share (EPS) for the quarter stood at $10.01, surpassing the estimated EPS of $9.48.

Company Overview

McKesson Corp is a leading pharmaceutical wholesaler in the U.S., engaged in sourcing and distributing branded, generic, and specialty pharmaceutical products to various healthcare providers. Alongside Cencora and Cardinal Health, McKesson accounts for over 90% of the U.S. pharmaceutical wholesale industry. The company also operates in Canada and supplies medical-surgical products and technology solutions for pharmacies.

Performance and Challenges

McKesson's strong performance in the fourth quarter and full year was driven by growth in the U.S. Pharmaceutical segment, particularly due to increased prescription volumes and the distribution of specialty products, including oncology. However, the company faces challenges such as potential legal disputes and regulatory changes, which could impact its operations and financial results.

Financial Achievements

For the full fiscal year 2025, McKesson reported consolidated revenues of $359.1 billion, a 16% increase from the previous year. The company's full-year EPS was $25.72, exceeding the annual estimate of $24.67. McKesson's adjusted earnings per diluted share for the year were $33.05, reflecting a 20% increase. These achievements underscore McKesson's strong operational execution and strategic focus on high-growth areas such as oncology and biopharma solutions.

Key Financial Metrics

McKesson's cash flow from operations was $6.1 billion, with a free cash flow of $5.2 billion. The company returned $3.5 billion to shareholders through stock repurchases and dividends. These metrics highlight McKesson's robust financial health and its ability to generate significant cash flow, which is crucial for sustaining growth and shareholder returns.

Strategic Initiatives and Outlook

McKesson announced its intention to separate its Medical-Surgical Solutions segment into an independent company, aiming to enhance strategic opportunities and operational focus. This move is expected to unlock value for shareholders and allow McKesson to concentrate on higher growth areas. The company has set a fiscal 2026 adjusted EPS guidance range of $36.75 to $37.55, indicating a forecasted growth of 11% to 14% compared to the prior year.

McKesson delivered strong fourth quarter performance reporting revenue growth of 19% and Adjusted Earnings per Diluted Share growth of 64%. This marks another year of strong financial results, above our long-term targets, underpinned by operational execution against our strategic priorities, and disciplined and focused capital deployment," said Brian Tyler, chief executive officer.

Conclusion

McKesson Corp's robust financial performance in fiscal 2025, driven by strategic growth in key segments, positions the company well for future success. The planned separation of the Medical-Surgical Solutions segment and continued focus on high-margin areas like oncology and biopharma solutions are expected to drive sustainable growth and shareholder value in the coming years.

Explore the complete 8-K earnings release (here) from McKesson Corp for further details.