McKesson Q2 2025 Earnings Report
Key Takeaways
McKesson Corporation announced strong second-quarter results, with a 21% increase in consolidated revenues to $93.7 billion and a 13% increase in Adjusted Earnings per Diluted Share to $7.07. The company also raised its full-year adjusted EPS guidance to $32.40 to $33.00.
Consolidated revenues increased by 21% to $93.7 billion.
Adjusted Earnings per Diluted Share grew by 13% to $7.07.
Full-year Adjusted Earnings per Diluted Share guidance raised to $32.40 to $33.00.
Agreement announced to acquire a controlling interest in Florida Cancer Specialists & Research Institute LLC's Core Ventures.
McKesson
McKesson
McKesson Revenue by Segment
Forward Guidance
McKesson is raising and narrowing fiscal 2025 Adjusted Earnings per Diluted Share guidance to $32.40 to $33.00 from the previous range of $31.75 to $32.55.
Positive Outlook
- Fiscal 2025 Adjusted Earnings per Diluted Share guidance range raised to $32.40 to $33.00.
- Fiscal 2025 Adjusted Earnings per Diluted Share guidance range indicates 18% to 20% growth compared to prior year.
- Full year share repurchases target raised from $2.8 billion to $3.2 billion.
- Fiscal 2025 Adjusted Earnings per Diluted Share guidance includes $0.53 related to year-to-date gains associated with McKesson Ventures' equity investments.
- Company remains confident in its ability to deliver against its fiscal 2025 outlook, which is above the long-term targets previously provided.
Challenges Ahead
- McKesson does not provide forward-looking guidance on a GAAP basis.
- McKesson cannot reasonably forecast LIFO inventory-related adjustments.
- McKesson cannot reasonably forecast certain litigation loss and gain contingencies.
- McKesson cannot reasonably forecast restructuring, impairment and related charges.
- McKesson cannot reasonably forecast other adjustments, which are difficult to predict and estimate.
Revenue & Expenses
Visualization of income flow from segment revenue to net income