Executive Summary
McKesson delivered robust top-line growth in QQ3 2025 with Revenue of USD 95.294 billion, up 17.8% year-over-year (YoY) and 1.75% quarter-over-quarter (QoQ). Management’s results reflect sustained demand across its diversified platform (US Pharmaceutical, International Medical-Surgical Solutions, and RxTS), underpinned by scale advantages and ongoing investments in technology-enabled solutions. However, the quarter is characterized by meaningful cash flow headwinds and a stressed balance sheet: operating cash flow was negative (USD -2.383 billion), free cash flow was negative (USD -2.579 billion), and working capital swings were material (change in working capital of USD -4.185 billion with accounts receivable down USD 5.65 billion and other working capital effects of USD -3.796 billion). Net income reached USD 0.879 billion with an EPS of USD 6.98 (diluted USD 6.94), but the company carries a negative reported stockholders’ equity (USD -3.084 billion) and a leveraged liquidity profile (current ratio 0.884, quick ratio 0.476, cash ratio 0.0219). While EBITDA stood at USD 1.446 billion with an EBITDA margin of about 1.52%, the cash flow dynamics and balance sheet stress mark an important overhang for near-term value realization. The absence of explicit forward-looking guidance in the data requires investors to focus on execution of cash conversion improvements, working capital discipline, and debt maturity management as key near-term catalysts.
Key Performance Indicators
QoQ: 111.76% | YoY:96.47%
QoQ: 264.73% | YoY:49.24%
QoQ: 273.26% | YoY:56.85%
Key Insights
Revenue: USD 95,294,000,000; YoY +17.80%; QoQ +1.75%
Gross Profit: USD 3,284,000,000; YoY +8.31%; QoQ +1.11%; Gross Margin: 3.45%
Operating Income: USD 1,224,000,000; YoY +96.47%; QoQ +111.76%; Operating Margin: 1.28%
Net Income: USD 879,000,000; YoY +49.24%; QoQ +264.73%; Net Margin: 0.92%
EBITDA: USD 1,446,000,000; EBITDA Margin: 1.52%
EPS (GAAP): USD 6.98; Diluted EPS: USD 6.94; Weighted Avg Shares: 126.0 million
Cash Flow: Net cash provided by operating activities USD (2,383,000,000); Capex ...
Financial Highlights
Revenue: USD 95,294,000,000; YoY +17.80%; QoQ +1.75%
Gross Profit: USD 3,284,000,000; YoY +8.31%; QoQ +1.11%; Gross Margin: 3.45%
Operating Income: USD 1,224,000,000; YoY +96.47%; QoQ +111.76%; Operating Margin: 1.28%
Net Income: USD 879,000,000; YoY +49.24%; QoQ +264.73%; Net Margin: 0.92%
EBITDA: USD 1,446,000,000; EBITDA Margin: 1.52%
EPS (GAAP): USD 6.98; Diluted EPS: USD 6.94; Weighted Avg Shares: 126.0 million
Cash Flow: Net cash provided by operating activities USD (2,383,000,000); Capex USD (196,000,000); Free Cash Flow USD (2,579,000,000)
Balance Sheet: Total Assets USD 71.081 billion; Total Liabilities USD 73.785 billion; Total Stockholders’ Equity USD (3.084) billion; Current Ratio 0.884; Quick Ratio 0.476; Cash and Cash Equivalents USD 1.131 billion; Net Receivables USD 25.831 billion; Inventory USD 23.837 billion; Total Debt USD 9.757 billion; Net Debt USD 8.626 billion
Liquidity & Leverage: Current ratio below 1; Negative equity; Debt-to-capitalization implied by data elevated; Leverage and liquidity risk notable despite large asset base.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
95.29B |
17.80% |
1.75% |
| Gross Profit |
3.28B |
8.31% |
1.11% |
| Operating Income |
1.22B |
96.47% |
111.76% |
| Net Income |
879.00M |
49.24% |
264.73% |
| EPS |
6.98 |
56.85% |
273.26% |
Key Financial Ratios
operatingProfitMargin
1.35%
operatingCashFlowPerShare
$-18.91
freeCashFlowPerShare
$-19.91
dividendPayoutRatio
10.5%
Management Commentary
No earnings call transcript provided for QQ3 2025. Consequently, no management quotes or theme-based highlights can be extracted from the transcript data available in this dataset.
Forward Guidance
No explicit forward guidance is embedded in the provided data. Given the revenue trajectory and strategic initiatives (notably RxTS and international distribution expansions), the long-term revenue growth potential remains intact. Near term, investors should monitor management’s ability to convert topline growth into cash flow, stabilize working capital, and address the negative equity and liquidity profile. Key factors to watch: (1) cash flow generation and working capital optimization (DSO/DSO/DSO dynamics, receivables turnover), (2) debt maturities and near-term financing needs, and (3) ongoing cost controls and efficiency initiatives that could restore margin and ROIC over time.