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November 14, 2025 • 3 min read
McKesson Corp., a pivotal force in pharmaceutical distribution and healthcare services, recently provided a detailed look into its financial health with its second-quarter fiscal 2026 report. An analysis of the company's latest 10-Q filing reveals a period of significant revenue growth and a dramatic surge in profitability, driven by strong operational performance and favorable comparisons to the prior year.
For the quarter ending September 30, 2025, McKesson reported impressive top-line growth, with total revenues climbing 10% to $103.2 billion from $93.7 billion in the same period last year. This growth underscores the company's expanding scale and essential role in the healthcare supply chain.
The bottom-line results were even more striking. Net income attributable to McKesson soared to $1.11 billion, a 361% increase from the prior year's $241 million. This translated to diluted earnings per share (EPS) of $8.92, a significant leap from $1.87 a year ago. A major factor in this profit expansion was a 20% year-over-year decrease in total operating expenses.
To better visualize how McKesson's revenues from its various business segments translate into profit, the following flow diagram breaks down the quarterly income statement.
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A closer look at McKesson's business segments reveals the sources of its strong performance.
North American Pharmaceutical: The company's largest segment, responsible for distributing pharmaceuticals across North America, saw revenues increase 8% to $86.5 billion. Its operating profit more than doubled to $852 million from $347 million last year, driven by growth in its specialty pharmaceutical business and higher overall volumes.
Oncology & Multispecialty: This key growth engine delivered a 32% jump in revenues to $12.0 billion. The segment's expansion is fueled by higher volumes from specialty providers and contributions from recent strategic acquisitions, such as Community Oncology Revitalization Enterprise Ventures (Core Ventures). Operating profit grew by a healthy 66% to $332 million.
Medical-Surgical Solutions: While revenues in this segment were flat at $2.9 billion, its operating profit surged 142% to $220 million. This remarkable increase is largely due to a more favorable comparison with the prior year. The same quarter last year included $144 million in severance and employee-related costs, which significantly depressed its results. The absence of this charge in the current quarter highlights a return to more normalized profitability rather than a fundamental shift in the segment's core operations.
Prescription Technology Solutions (RxTS): This high-margin segment, which provides technology and connectivity solutions to pharmacies and biopharma companies, continued its steady growth. Revenues rose 9% to $1.4 billion, while operating profit climbed 19% to $244 million, reflecting its strong operational efficiency.
McKesson has been actively deploying capital to fuel future growth, spending $3.4 billion on acquisitions in the first six months of its fiscal year.
The company also continues to return substantial capital to its shareholders. Over the past six months, McKesson repurchased $1.4 billion of its common stock and recently boosted its quarterly dividend. With $6.1 billion remaining under its share repurchase authorization, buybacks are expected to remain a central component of its capital allocation strategy.
In summary, McKesson's second-quarter results depict a company with solid underlying momentum. While the headline profit figures are amplified by comparison to a prior year impacted by significant one-off costs, the core business performance is robust. Strategic investments in high-growth areas like oncology are yielding results, and the company is signaling confidence through its aggressive share repurchase program. McKesson is effectively leveraging its scale while expanding into higher-margin services, positioning it for continued success in the dynamic healthcare industry.
Last updated: November 14, 2025