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Sep 30, 2021

McKesson Q2 2022 Earnings Report

McKesson reported strong second-quarter results, with revenue up 9% and adjusted EPS increasing by 28%.

Key Takeaways

McKesson Corporation reported strong second-quarter results for the period ended September 30, 2021. Total revenues increased by 9% driven by growth in the U.S. Pharmaceutical segment. Adjusted Earnings per Diluted Share increased by 28%. The company raised its fiscal 2022 Adjusted Earnings per Diluted Share guidance range to $21.95 to $22.55.

Total revenues increased 9% year-over-year to $66.6 billion.

Earnings per diluted share from continuing operations decreased to $1.71.

Adjusted Earnings per Diluted Share increased 28% year-over-year to $6.15.

Increased fiscal 2022 Adjusted Earnings per Diluted Share guidance range to $21.95 to $22.55.

Total Revenue
$66.6B
Previous year: $60.8B
+9.5%
EPS
$6.15
Previous year: $4.8
+28.1%
Gross Profit
$3.35B
Previous year: $3B
+11.7%
Cash and Equivalents
$2.15B
Previous year: $3.09B
-30.4%
Free Cash Flow
-$109M
Previous year: $919M
-111.9%
Total Assets
$63.6B
Previous year: $61.6B
+3.3%

McKesson

McKesson

McKesson Revenue by Segment

Forward Guidance

McKesson raised fiscal 2022 Adjusted Earnings per Diluted Share guidance to $21.95 to $22.55 from the previous range of $19.80 to $20.40 to reflect strong operating performance and increased contribution from the U.S. government's COVID-19 vaccine distribution, kitting, and storage programs.

Positive Outlook

  • $1.30 to $1.80 related to the U.S. government’s COVID-19 vaccine distribution, kitting, and storage programs
  • $0.50 to $0.75 related to COVID-19 tests and impairments for personal protective equipment and related products
  • $0.49 related to year-to-date gains or losses associated with McKesson Ventures’ equity investments
  • Strong operating performance
  • Increased contribution from the U.S. government's COVID-19 vaccine distribution, kitting, and storage programs.

Revenue & Expenses

Visualization of income flow from segment revenue to net income