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Mar 31, 2020

McKesson Q4 2020 Earnings Report

McKesson delivered strong Q4 2020 results, driven by revenue growth and strategic transformation.

Key Takeaways

McKesson reported a 12% increase in fourth-quarter revenues to $58.5 billion and an adjusted EPS of $4.27, a 16% increase year-over-year. The results reflect continued momentum and progress in McKesson's transformation towards becoming a more focused organization. The company generated $3.9 billion of free cash flow and successfully completed the exit of its investment in Change Healthcare.

Total revenues increased by 12% to $58.5 billion.

Earnings per diluted share increased to $5.82.

Adjusted Earnings per diluted share increased by 16% to $4.27.

McKesson completed the separation of its investment in Change Healthcare.

Total Revenue
$58.5B
Previous year: $52.4B
+11.6%
EPS
$4.27
Previous year: $3.69
+15.7%
Gross Profit
$3.34B
Previous year: $3.2B
+4.2%
Cash and Equivalents
$4.02B
Previous year: $2.98B
+34.7%
Free Cash Flow
$3.87B
Previous year: $3.78B
+2.4%
Total Assets
$61.2B
Previous year: $59.7B
+2.6%

McKesson

McKesson

McKesson Revenue by Segment

Forward Guidance

McKesson expects full-year fiscal 2021 Adjusted Earnings per diluted share of $13.95 to $14.75, which reflects anticipated headwinds in fiscal 2021 as a result of the COVID-19 pandemic and a continuation of disciplined, efficient capital deployment, including investments in the business. McKesson expects Adjusted Earnings per diluted share growth in the second half of fiscal 2021.

Revenue & Expenses

Visualization of income flow from segment revenue to net income