McKesson(MCK) - 2026 Q2 - Quarterly Results

Financial Performance - McKesson reported record revenue of $103.2 billion for the second quarter, a 10% increase compared to the prior year[2]. - Adjusted Earnings per Diluted Share increased by 39% to $9.86, up from $7.07 in the previous year[8]. - The company raised its fiscal 2026 Adjusted Earnings per Diluted Share guidance by $0.30 to a range of $38.35 to $38.85, indicating 16% to 18% growth compared to the prior year[5][15]. - Net income attributable to McKesson Corporation for the second quarter was $1.11 billion, a significant increase from $241 million in the prior year[4]. - Revenues for the three months ended September 30, 2025, were $103,150 million, a 10% increase from $93,651 million in the same period of 2024[28]. - Net income attributable to McKesson Corporation for the three months ended September 30, 2025, was $1,110 million, representing a 361% increase compared to $241 million in the prior year[30]. - Diluted earnings per share for the three months ended September 30, 2025, reached $8.92, a 377% increase from $1.87 in the same quarter of 2024[30]. - Adjusted earnings (Non-GAAP) for the three months ended September 30, 2025, were $1,227 million, a 34% increase from $915 million in the same period of 2024[30]. - Total revenues for the six months ended September 30, 2025, were $200,977 million, a 16% increase from $172,934 million in the same period of 2024[37]. - Net income for the six months ended September 30, 2025, was $1,994 million, a 60% increase from $1,247 million in the same period of 2024[42]. Cash Flow and Investments - Cash flow from operations for the quarter was $2.4 billion, resulting in Free Cash Flow of $2.2 billion after capital expenditures of $196 million[9]. - Net cash provided by operating activities increased by 109% to $2,420 million for the three months ended September 30, 2025, compared to $720 million for the same period in 2024[44]. - Free Cash Flow (Non-GAAP) for the six months ended September 30, 2025, was $2,224 million, representing a 233% increase from $335 million in the same period of 2024[44]. - Net cash used in investing activities was $3,588 million for the six months ended September 30, 2025, compared to $373 million in the same period of 2024, indicating a significant increase in investment activity[44]. - The company reported a net decrease in cash, cash equivalents, and restricted cash of $1,847 million for the six months ended September 30, 2025, compared to a decrease of $2,074 million in the same period of 2024[44]. - Cash and cash equivalents at the end of the period were $4,004 million for the six months ended September 30, 2025, up from $2,509 million in the same period of 2024[42]. Segment Performance - The North American Pharmaceutical segment revenues reached $86.5 billion, an 8% increase driven by higher prescription transaction volumes[13]. - The Oncology & Multispecialty segment revenues grew by 32% to $12.0 billion, supported by increased provider and specialty distribution growth[13]. - North American Pharmaceutical segment revenues increased by 8% to $86,481 million from $80,018 million year-over-year[35]. - Operating profit for the North American Pharmaceutical segment rose by 146% to $852 million compared to $347 million in the prior year[35]. - The company reported an operating profit margin of 0.99% for the North American Pharmaceutical segment, up from 0.43%[35]. Shareholder Returns - The company returned $1.6 billion to shareholders in the first six months, including $1.4 billion in stock repurchases[10]. - The company declared dividends of $0.82 per common share, a 15% increase from $0.71 in the same quarter of 2024[28]. Strategic Initiatives - McKesson's strategic focus on oncology and multispecialty services continues to drive sustainable long-term growth[3]. - The company announced a definitive agreement to sell its retail and distribution businesses in Norway, subject to customary closing conditions[13]. Financial Adjustments and Non-GAAP Measures - Free Cash Flow (Non-GAAP) is defined as net cash from operating activities minus payments for property, plant, and equipment, with reconciliations provided in financial statements[59]. - The company believes Non-GAAP measures provide useful supplemental information for assessing operating performance and comparing financial results with industry peers[61]. - Management uses both GAAP and Non-GAAP measures for financial planning, resource allocation, and assessing business performance[62]. - Non-GAAP adjusted results should not be viewed as a substitute for GAAP financial results[62]. Liabilities and Restructuring - Total liabilities related to litigation increased by $657 million for the six months ended September 30, 2025, compared to $386 million in the same period of 2024[42]. - The company incurred pre-tax restructuring, impairment, and related charges of $110 million for the six months ended September 30, 2025, compared to $244 million in the same period of 2024[48]. - The company incurs restructuring charges related to operational changes, including employee severance and facility closure costs, which are not part of its underlying business[56].