McKesson Corp

mckesson.com

What Do They Do?

Distributes medicines and other healthcare products to pharmacies, hospitals and other healthcare providers in the United States and Canada.

How Do They Make Money?

Most revenue comes from distributing pharmaceutical and medical products, with sales tied to delivery or pickup. Retail sales occur at the point of sale, while service revenue is earned as services are performed.

revenue

Segment	Share	How money arrives
North American Pharmaceutical Sold outright	83%	Sold outright
Oncology & Multispecialty	12%
Prescription Technology Solutions	1.4% FY2023: 1.6%
Medical-Surgical Solutions	2.9% FY2023: 4.0%

Who Are Their Customers?

Its customers include retail chains and community pharmacies, hospitals and other institutional providers, and pharmaceutical manufacturers and specialty practices. Group purchasing organizations act as purchasing agents for member hospitals, pharmacies and other healthcare providers.

Customers above 10% of revenue, FY2026

of revenue from three customers (24%, 11%, 10%)

Do Revenues Turn Into Profits?

Yes. It kept 1 cent of every revenue dollar as net income in FY2026 and turned 1 cent into free cash flow.

Operating income, FY2026

2% of revenue

▲ +40% vs FY2025 ($4.4B, 1%)

Net income, FY2026

1% of revenue

▲ +45% vs FY2025 ($3.3B, 1%)

Free cash flow, FY2026

1% of revenue

▲ +3% vs FY2025 ($5.5B, 2%)

How Are They Changing?

Since the FY2026 annual report

Latest quarter: Q1 FY2027, the three months to Jun 30, 2026

Revenue: ▲ +8%; vs $97.8B in Q1 FY2026
Net income: ▼ −22%; vs $784M in Q1 FY2026

North American Pharmaceutical share of revenue vs 84.6% in Q1 FY2026

Growing. Revenue grew 53% in 4 years, from $264B in FY2022 to $403.4B in FY2026, about 11% a year.

Ophthalmology and retina services The latest report includes PRISM Vision, a provider of general ophthalmology and retina management services, alongside the oncology and specialty-practice offerings described in the older report.

Norwegian operations sold The older report describes international distribution and services in Europe and Canada; the latest report says McKesson sold its Norwegian wholesale and retail operations.

Revenue over time

North American Pharmaceutical Oncology & Multispecialty Prescription Technology Solutions Medical-Surgical Solutions International U.S. Pharmaceutical

$500B$250B$0

FY2022 FY2023 FY2024 FY2025 FY2026

Who Do They Compete With?

Competes with Cencora and Cardinal Health

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