McKesson Corporation Reports 18% Revenue Growth to $95.3 Billion in Latest Quarter

McKesson Corporation reported significant financial performance improvements in its latest quarterly filing, with revenues reaching $95.3 billion for the three months ended December 31, 2024, an increase of 18% compared to $80.9 billion in the same period last year. For the nine months ended December 31, 2024, revenues also rose by 15% to $268.2 billion from $232.6 billion. The company’s net income attributable to McKesson Corporation for the quarter was $879 million, up from $589 million a year earlier, while net income for the nine-month period decreased slightly to $2.0 billion from $2.2 billion. Diluted earnings per share increased to $6.95 for the quarter, compared to $4.42 in the prior year.

The financial results reflect a notable shift in operating expenses, which decreased by 18% to $2.1 billion for the quarter, primarily due to a reduction in selling, distribution, general, and administrative expenses. The company recorded restructuring charges of $32 million for the quarter and $213 million for the nine months, as part of ongoing initiatives to enhance operational efficiency. Additionally, McKesson completed the divestiture of its Canadian retail operations, resulting in a $666 million charge to remeasure the assets and liabilities of the disposed group.

Strategically, McKesson has been active in expanding its portfolio, announcing the acquisition of a controlling interest in PRISM Vision Holdings for approximately $850 million, which is expected to enhance its U.S. Pharmaceutical segment. The company also onboarded a new strategic partner within this segment during the nine months ended December 31, 2024. Furthermore, McKesson has been involved in various antitrust legal settlements, receiving $31 million and $184 million for the three and nine months ended December 31, 2024, respectively.

Operationally, McKesson's U.S. Pharmaceutical segment saw a revenue increase of 19% for the quarter, driven by higher volumes from retail national account customers and growth in specialty pharmaceuticals. The Prescription Technology Solutions segment also reported a 14% revenue increase, attributed to higher technology service revenues. However, the Medical-Surgical Solutions segment experienced a slight decline in revenue for the quarter, reflecting lower volumes in primary care. The International segment reported a 6% revenue increase, bolstered by higher pharmaceutical distribution volumes in Canada.

Looking ahead, McKesson anticipates continued growth driven by market demand and strategic acquisitions. The company remains focused on improving operational efficiencies and managing its litigation liabilities, particularly related to opioid-related claims, which totaled $6.4 billion as of December 31, 2024. McKesson's management expressed confidence in the company's ability to navigate these challenges while maintaining a strong financial position, supported by robust cash flow and access to capital markets.