McKesson Corporation
0JZU.L
$796.92 -0.37%
Exchange: LSE | Sector: Healthcare | Industry: Medical Equipment Services
Q4 2025
Published: May 9, 2025

Earnings Highlights

  • Revenue of $90.82B up 19% year-over-year
  • EPS of $10.01 increased by 66.3% from previous year
  • Gross margin of 4.0%
  • Net income of 1.26B
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0JZU.L
McKesson Corporation

Executive Summary

McKesson reported a solid Q4’25 with revenue of $90.82 billion and net income of $1.26 billion, translating to diluted EPS of $10.01. The quarter demonstrated meaningful year-over-year growth in revenue (YoY +18.95%) but showed sequential pressure in the quarter-over-quarter comparison (QoQ -4.69%), suggesting typical seasonality and mix effects within a large healthcare distribution platform. Gross margin remained modest at ~4.01%, with operating margin around 1.75%, reflecting the low-margin, high-volume nature of pharmaceutical and medical-surgical distribution, along with ongoing investment in technology-enabled solutions. Free cash flow was robust at $7.47 billion driven by strong operating cash flow of $7.75 billion and disciplined capital expenditure of ~$278 million, enabling meaningful liquidity and flexible capital allocation (dividends and modest share repurchases). Net debt stood at approximately $1.70 billion against a cash balance of about $5.69 billion, underscoring solid liquidity despite a large asset base and significant non-cash intangibles. The balance sheet shows total assets of ~$75.14 billion against total liabilities of ~$76.83 billion and stockholders’ equity of approximately -$2.07 billion, highlighting the impact of heavy non-cash asset bases (goodwill and intangibles) and evolving capital structure. Management commentary specific to forward guidance was not provided in the available materials, thus forward guidance must be sourced from official filings or the earnings call transcript when released.

Key Performance Indicators

Revenue
Increasing
90.82B
QoQ: -4.69% | YoY: 18.95%
Gross Profit
Increasing
3.64B
4.01% margin
QoQ: 10.81% | YoY: 5.08%
Operating Income
Increasing
1.59B
QoQ: 29.98% | YoY: 15.96%
Net Income
Increasing
1.26B
QoQ: 43.34% | YoY: 59.29%
EPS
Increasing
10.06
QoQ: 44.13% | YoY: 66.28%

Revenue Trend

Margin Analysis

Historical Earnings Comparison

PeriodRevenue ($M)EPS ($)YoY GrowthReport
Q1 2026 97,827.00 6.25 +23.4% View
Q4 2025 90,823.00 10.01 +19.0% View
Q3 2025 95,294.00 6.94 +17.8% View
Q2 2025 93,651.00 1.86 +21.3% View
Q1 2025 79,283.00 7.00 +6.4% View