NYSE$MCK
McKesson Corp · Q1 2025 earnings
Q1 2025 earnings · · Investor relations
Briefing
McKesson's financial performance for Q1 2025 was reported, revenues increased by 6% and adjusted EPS increased by 8%.
McKesson Corporation reported a 6% increase in consolidated revenues, reaching $79.3 billion. Adjusted Earnings per Diluted Share increased by 8% to $7.88. The company raised its fiscal 2025 Adjusted Earnings per Diluted Share guidance range to $31.75 to $32.55.
- Consolidated revenues increased by 6% to $79.3 billion.
- Earnings per diluted share decreased by $0.02 to $7.00.
- Adjusted Earnings per Diluted Share increased by 8% to $7.88.
- Board approved a 15% increase to the quarterly dividend, to $0.71 per share and a $4.0 billion increase to the share repurchase program.
Headline financials
Revenue & EPS history
McKesson · Revenue · Quarterly
$79.3B
Revenue by segment
McKesson · $3.97B total across 2 segments · Q2 2024
- Medical-Surgical Solutions$2.83B-0.3%71.3%
- Prescription Technology Solutions$1.14B+12.0%28.7%
Forward guidance
McKesson is raising fiscal 2025 Adjusted Earnings per Diluted Share guidance to $31.75 to $32.55 from the previous range of $31.25 to $32.05.
Tailwinds
- Fiscal 2025 Adjusted Earnings per Diluted Share guidance range raised to $31.75 to $32.55
- Fiscal 2025 Adjusted Earnings per Diluted Share guidance range indicates 16% to 19% growth compared to prior year.
- First quarter revenues were $79.3 billion, an increase of 6% from a year ago, primarily driven by growth in the U.S. Pharmaceutical segment, resulting from increased prescription volumes, including higher volumes from specialty products, retail national account customers, and GLP-1 medications.
- First quarter Adjusted Earnings per Diluted Share was $7.88 compared to $7.27 a year ago, an increase of 8%, driven by pre-tax gains of $110 million associated with McKesson Ventures' equity investments within corporate expenses, compared to pre-tax losses of $7 million in the first quarter of fiscal 2024, and a lower share count, partially offset by a higher tax rate.
- The Board approved a 15% increase to the dividend, marking the eighth consecutive year of a dividend increase. The Board also authorized a $4.0 billion increase to the share repurchase program.
Headwinds
- First quarter results were impacted by lower contributions from access programs in our Prescription Technology Solutions segment, and slower growth, including customer mix and demand shifts, in our Medical-Surgical business.
- First quarter earnings per diluted share was $7.00 compared to $7.02 a year ago, a decrease of $0.02.
- During the first three months of the fiscal year, McKesson used cash from operations of $1.4 billion, a portion of which was used in support of onboarding new customers, and invested $167 million in capital expenditures, resulting in negative Free Cash Flow of $1.5 billion.
- McKesson does not provide forward-looking guidance on a GAAP basis
- The Company cannot reasonably forecast LIFO inventory-related adjustments, certain litigation loss and gain contingencies, restructuring, impairment and related charges, and other adjustments, which are difficult to predict and estimate.
Historical earnings impact
How earnings announcements have historically affected this stock's price.
Avg. return before/after earnings
Based on 20 quarterly earnings reports · overlaid with Q1 2025
+1.2%
Avg return
Earnings day
+0.6%
Avg return
5 days after
+1.1%
Avg return
30 days after
60%
44 / 73 earnings
Positive
+16.5%
Q3 2026
Best reaction
-21.7%
Q2 2017
Worst reaction
| Quarter | Report date | Reaction (Day 0) | +5 days | +30 days |
|---|---|---|---|---|
| Q4 2026 | +0.2% | -3.4% | +2.8% | |
| Q3 2026 | +16.5% | +13.8% | +11.8% | |
| Q2 2026 | +1.5% | +1.4% | -4.2% | |
| Q1 2026 | -5.8% | -6.4% | -2.3% | |
| Q4 2025 | +0.4% | -1.2% | +3.3% | |
| Q3 2025 | -1.2% | +0.6% | +6.1% | |
| Q2 2025 | +15.7% | +17.2% | +14.9% | |
| Q1 2025 | -10.9% | -10.3% | -17.9% | |
| Q4 2024 | +1.9% | +5.0% | +9.9% | |
| Q3 2024 | -2.5% | -2.4% | +4.1% | |
| Q2 2024 | -1.7% | +1.0% | +2.0% | |
| Q1 2024 | +7.4% | +4.2% | +1.8% | |
| Q4 2023 | +6.2% | +6.6% | +5.1% | |
| Q3 2023 | -3.2% | -5.4% | -8.7% | |
| Q2 2023 | +0.1% | +1.9% | -2.5% | |
| Q1 2023 | +0.8% | +3.7% | +8.6% | |
| Q4 2022 | +4.5% | +3.1% | -1.1% | |
| Q3 2022 | +4.1% | +5.2% | +9.7% | |
| Q2 2022 | +5.3% | +6.6% | +3.6% | |
| Q1 2022 | -3.3% | -4.6% | -0.1% | |
| Q4 2021 | +4.5% | +4.7% | +3.1% | |
| Q3 2021 | +1.0% | +1.9% | -4.1% | |
| Q2 2021 | +9.2% | +12.4% | +17.8% | |
| Q1 2021 | +4.6% | +1.2% | +4.1% | |
| Q4 2020 | +0.8% | +3.3% | +8.3% | |
| Q3 2020 | +5.7% | +8.6% | +0.8% | |
| Q2 2020 | -11.0% | -7.9% | -3.2% | |
| Q1 2020 | +4.0% | +1.5% | -3.0% | |
| Q4 2019 | +7.1% | +0.6% | +3.7% | |
| Q3 2019 | +1.9% | +5.4% | -0.4% | |
| Q2 2019 | -2.6% | +2.1% | -0.3% | |
| Q1 2019 | -7.1% | -5.8% | -2.8% | |
| Q4 2018 | -0.7% | -3.8% | +1.4% | |
| Q3 2018 | -5.7% | -9.7% | -11.2% | |
| Q2 2018 | -10.4% | -8.9% | -4.4% | |
| Q1 2018 | -2.3% | -3.1% | -11.3% | |
| Q4 2017 | +7.7% | +11.9% | +12.5% | |
| Q3 2017 | -6.6% | -7.6% | +1.7% | |
| Q2 2017 | -21.7% | -18.5% | -9.8% | |
| Q1 2017 | -1.4% | -2.1% | -6.9% | |
| Q4 2016 | +2.7% | — | — | |
| Q3 2016 | -6.4% | — | — | |
| Q2 2016 | -2.0% | — | — | |
| Q1 2016 | -4.1% | — | — | |
| Q4 2015 | +1.7% | — | — | |
| Q3 2015 | +5.7% | — | — | |
| Q2 2015 | -2.1% | — | — | |
| Q1 2015 | +2.2% | — | — | |
| Q4 2014 | +5.3% | — | — | |
| Q3 2014 | +0.7% | — | — | |
| Q2 2014 | +8.3% | — | — | |
| Q1 2014 | +5.4% | — | — | |
| Q4 2013 | +7.3% | — | — | |
| Q3 2013 | -2.3% | — | — | |
| Q2 2013 | +3.4% | — | — | |
| Q1 2013 | -1.0% | — | — | |
| Q4 2012 | -0.7% | — | — | |
| Q3 2012 | +3.0% | — | — | |
| Q2 2012 | +6.3% | — | — | |
| Q1 2012 | +0.7% | — | — | |
| Q4 2011 | -0.2% | — | — | |
| Q3 2011 | +2.3% | — | — | |
| Q2 2011 | +6.0% | — | — | |
| Q1 2011 | -0.7% | — | — | |
| Q4 2008 | +3.8% | — | — | |
| Q4 2010 | +3.8% | — | — | |
| Q3 2010 | -3.1% | — | — | |
| Q3 2009 | -3.1% | — | — | |
| Q2 2010 | -3.2% | — | — | |
| Q2 2009 | +8.9% | — | — | |
| Q1 2009 | +8.9% | — | — | |
| Q1 2010 | +8.9% | — | — | |
| Q4 2009 | +8.9% | — | — |
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