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Segments of Business | 6 Months Ended
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Sep. 30, 2025
Segment Reporting [Abstract] |
Segments of Business | Segments of Business Commencing in the second quarter of fiscal 2026, the Company implemented a new segment reporting structure which resulted in four reportable segments: North American Pharmaceutical, Oncology & Multispecialty, RxTS, and M edical-Surgical Solutions. The Company’s Norwegian operations have been classified as held for sale and are now included in Other as the Norway disposal group. All prior segment information has been recast to reflect the Company’s new segment structure and current period presentation. The organizational structure also includes Corporate, which consists of income and expenses associated with administrative functions and projects, and the results of certain investments. These segment changes reflect how the Company’s Chief Executive Officer, who is the chief operating decision maker (“CODM”), allocates resources and assesses performance beginning in the second quarter of fiscal 2026. The factors for determining the reportable segments include the manner in which management evaluates the performance of the Company combined with the nature of the individual business activities. The Company evaluates the performance of its operating segments on a number of measures, including revenues and operating profit before interest expense and income taxes. The CODM uses operating profit before interest expense and income taxes to assess performance and allocate resources for each reportable segment during the Company’s annual long-term planning process and through quarterly operating reviews focused on each segment’s results compared to the budget and rolling forecast. The CODM is regularly provided with budgeted or forecasted expense information for the segment and also uses consolidated expense information. Assets by segment are not a measure used to assess the performance of the Company by the CODM and thus are not reported in our disclosures. The North American Pharmaceutical segment provides distribution and logistics services for branded, generic, specialty, biosimilar and over-the-counter pharmaceutical drugs along with other healthcare-related products to wholesale and institutional customers in the U.S. and Canada. In addition, the segment sells financial, operational, and clinical solutions to pharmacies (retail, hospital, alternate sites) and provides consulting, outsourcing, technological, and other services. The U.S. distribution operations were previously included in the former U.S. Pharmaceutical reportable segment and the Canadian operations were previously included in the former International reportable segment. The Oncology & Multispecialty segment includes provider solutions that encompass specialty drug distribution, group purchasing organizations, infusion services, direct to patient pharmacy capabilities, cell and gene therapy services with InspiroGene, technology solutions, practice consulting services, and vaccine distribution. In addition, the segment supports one of the largest networks of physician-led, integrated, community-based oncology practices dedicated to advancing high-quality, evidence-based cancer care in the U.S. The segment also includes PRISM Vision, which drives patient outcomes in a retina and ophthalmology setting. Combined with Sarah Cannon Research Institute and our technology business, Ontada, this segment provides research, insights, technologies, and services that address and improve cancer and specialty care. This segment was previously reflected in the former U.S. Pharmaceutical reportable segment. The RxTS segment helps solve medication access, affordability, and adherence challenges for patients by working across healthcare to connect patients, pharmacies, providers, pharmacy benefit managers, health plans, and biopharma companies. RxTS serves our biopharma and life sciences partners, delivering innovative solutions that help people get the medicine they need to live healthier lives. RxTS offers technology services, which includes electronic prior authorization, prescription price transparency, benefit insight, and dispensing support services, in addition to third-party logistics and wholesale distribution support designed to benefit stakeholders. The Medical-Surgical Solutions segment provides medical-surgical supply distribution, logistics, and other services to healthcare providers, operating in ambulatory care environments, such as physician offices, surgery centers, and hospital reference labs, as well as extended care settings, including nursing homes and home health care agencies. This segment offers national brand medical-surgical products as well as McKesson’s own line of high-quality products through a network of distribution centers in the U.S. On May 8th, 2025, the Company announced its intention to separate this segment into an independent company. The Company’s Norwegian operations, which provide distribution and services to wholesale and retail customers in Norway where it owns, partners, or franchises with retail pharmacies, were previously included in the International reportable segment, but are now included in Other. During the six months ended September 30, 2025, the Company entered into a definitive agreement to sell its businesses in Norway. The transaction is subject to customary closing conditions, including receipt of required regulatory approvals. Refer to Financial Note 2, “Business Acquisitions and Divestitures,” for more information. Financial information relating to the Company’s reportable operating segments and reconciliations to the condensed consolidated totals was as follows:
| Three Months Ended September 30, |  | Six Months Ended September 30,
(In millions) | 2025 |  | 2024 |  | 2025 |  | 2024
Segment revenues (1) |  |  |  |  |  |  |
North American Pharmaceutical | $ | 86,481 |  |  | $ | 80,018 |  |  | $ | 169,210 |  |  | $ | 146,366 |
Oncology & Multispecialty | 12,044 |  |  | 9,157 |  |  | 22,702 |  |  | 17,938 |
Prescription Technology Solutions | 1,376 |  |  | 1,265 |  |  | 2,810 |  |  | 2,506 |
Medical-Surgical Solutions | 2,947 |  |  | 2,946 |  |  | 5,648 |  |  | 5,578 |
Other | 302 |  |  | 265 |  |  | 607 |  |  | 546 |
Total revenues | $ | 103,150 |  |  | $ | 93,651 |  |  | $ | 200,977 |  |  | $ | 172,934 |
Other segment expense, net (2) |  |  |  |  |  |  |
North American Pharmaceutical (3) | $ | 85,629 |  |  | $ | 79,671 |  |  | $ | 167,764 |  |  | $ | 145,317 |
Oncology & Multispecialty (4) | 11,712 |  |  | 8,957 |  |  | 22,158 |  |  | 17,590 |
Prescription Technology Solutions | 1,132 |  |  | 1,060 |  |  | 2,313 |  |  | 2,098 |
Medical-Surgical Solutions (5) | 2,727 |  |  | 2,855 |  |  | 5,207 |  |  | 5,295 |
Other | 274 |  |  | 252 |  |  | 566 |  |  | 516 |
Total other segment expense, net | $ | 101,474 |  |  | $ | 92,795 |  |  | $ | 198,008 |  |  | $ | 170,816 |
Segment operating profit |  |  |  |  |  |  |
North American Pharmaceutical | $ | 852 |  |  | $ | 347 |  |  | $ | 1,446 |  |  | $ | 1,049 |
Oncology & Multispecialty | 332 |  |  | 200 |  |  | 544 |  |  | 348 |
Prescription Technology Solutions | 244 |  |  | 205 |  |  | 497 |  |  | 408 |
Medical-Surgical Solutions | 220 |  |  | 91 |  |  | 441 |  |  | 283 |
Other | 28 |  |  | 13 |  |  | 41 |  |  | 30 |
Subtotal | 1,676 |  |  | 856 |  |  | 2,969 |  |  | 2,118 |
Corporate expenses, net (6) | (207) |  |  | (244) |  |  | (400) |  |  | (347) |
Interest expense | (74) |  |  | (78) |  |  | (123) |  |  | (153) |
Income before income taxes | $ | 1,395 |  |  | $ | 534 |  |  | $ | 2,446 |  |  | $ | 1,618 |
Segment depreciation and amortization (7) |  |  |  |  |  |  |
North American Pharmaceutical | $ | 32 |  |  | $ | 43 |  |  | $ | 64 |  |  | $ | 91 |
Oncology & Multispecialty | 71 |  |  | 37 |  |  | 113 |  |  | 75 |
Prescription Technology Solutions | 20 |  |  | 22 |  |  | 41 |  |  | 43 |
Medical-Surgical Solutions | 23 |  |  | 22 |  |  | 45 |  |  | 44 |
Other | 1 |  |  | 5 |  |  | 4 |  |  | 10 |
Corporate | 41 |  |  | 34 |  |  | 78 |  |  | 69 |
Total segment depreciation and amortization | $ | 188 |  |  | $ | 163 |  |  | $ | 345 |  |  | $ | 332 |
Segment expenditures for long-lived assets (8) |  |  |  |  |  |  |
North American Pharmaceutical | $ | 74 |  |  | $ | 66 |  |  | $ | 135 |  |  | $ | 96 |
Oncology & Multispecialty | 23 |  |  | 19 |  |  | 47 |  |  | 37 |
Prescription Technology Solutions | — |  |  | 3 |  |  | 1 |  |  | 7 |
Medical-Surgical Solutions | 32 |  |  | 42 |  |  | 57 |  |  | 93 |
Other | 4 |  |  | 4 |  |  | 5 |  |  | 9 |
Corporate | 63 |  |  | 84 |  |  | 140 |  |  | 143 |
Total segment expenditures for long-lived assets | $ | 196 |  |  | $ | 218 |  |  | $ | 385 |  |  | $ | 385 |
(1)Revenues from services on a disaggregated basis represent less than 1% of the North American Pharmaceutical segment’s total revenues, approximately 7% of the Oncology & Multispecialty segment’s total revenues, approximately 37% of the Prescription Technology Solutions segment’s total revenues, and less than 1% of the Medical-Surgical Solutions segment’s total revenues. The Company’s Norwegian operations are included in Other. Revenues for the four reportable segments are derived in the U.S and Canada. (2)Other segment expense, net includes cost of sales, total operating expenses, as well as other income, net, for the Company’s reportable segments. (3)The Company’s North American Pharmaceutical other segment expense, net includes the following: •a provision for bad debts of $189 million for the six months ended September 30, 2025 and a credit of $203 million for the three and six months ended September 30, 2024 related to the bankruptcy of the Company’s customer Rite Aid Corporation (including certain of its subsidiaries, “Rite Aid”). This charge was recorded within “Selling, distribution, general, and administrative expenses” in the Company’s Condensed Consolidated Statements of Operations; •cash receipts for the Company’s share of antitrust legal settlements were immaterial and $63 million for the three months ended September 30, 2025 and 2024, respectively, and $8 million and $153 million for the six months ended September 30, 2025 and 2024, respectively. These gains were recorded within “Cost of sales” in the Company’s Condensed Consolidated Statements of Operations; •a charge of $593 million for the three and six months ended September 30, 2024 to remeasure the assets and liabilities of the Canadian retail disposal group to fair value less costs to sell, as discussed in Financial Note 2, “Business Acquisitions and Divestitures;” •restructuring charges of $63 million and $65 million for the three and six months ended September 30, 2024, respectively, for restructuring initiatives as discussed in Financial Note 3, “Restructuring, Impairment, and Related Charges, Net;” and •a charge of $57 million for the six months ended September 30, 2024 related to the estimated liability for opioid-related claims, as discussed in Financial Note 11, “Commitments and Contingent Liabilities.” (4)The Company’s Oncology & Multispecialty other segment expense, net includes the following: •a net gain of $51 million for the three and six months ended September 30, 2025 related to the sale of an investment and market decisions, which was recorded within “Selling, distribution, general, and administrative expenses” in the Company’s Condensed Consolidated Statement of Operations; and •a loss of $43 million for the six months ended September 30, 2024 related to one of the Company’s equity method investments, which was recorded within “Other income, net” in the Company’s Condensed Consolidated Statement of Operations. (5)The Company’s Medical-Surgical Solutions other segment expense, net for the three and six months ended September 30, 2024 includes restructuring charges of $144 million related to a broad set of initiatives to drive operational efficiencies and increase cost optimization efforts as discussed in Financial Note 3, “Restructuring, Impairment, and Related Charges, Net.” (6)Corporate expenses, net includes the following: •a charge of $50 million for the three and six months ended September 30, 2024 related to the effect of accumulated other comprehensive loss components from the Canadian retail disposal group, as discussed in Financial Note 2, “Business Acquisitions and Divestitures;” •a net gain of $95 million for the six months ended September 30, 2024 related to the Company’s investments in equity securities of certain U.S. growth stage companies in the healthcare industry, as discussed in Financial Note 10, “Fair Value Measurements;” •a net charge of $51 million for the six months ended September 30, 2024 related to the estimated liability for opioid-related claims, as discussed in Financial Note 11, “Commitments and Contingent Liabilities;” and •restructuring charges of $38 million and $23 million for the three months ended September 30, 2025 and 2024, respectively, and charges of $67 million and $24 million for the six months ended September 30, 2025 and 2024, respectively, for restructuring initiatives as discussed in Financial Note 3, “Restructuring, Impairment, and Related Charges, Net.” (7)Amounts primarily consist of amortization of acquired intangible assets purchased in connection with business acquisitions and capitalized software for internal use as well as depreciation and amortization of property, plant, and equipment, net. (8)Long-lived assets consist of property, plant, and equipment, net and capitalized software. Long-lived assets by geographic areas were as follows:
(In millions) | September 30, 2025 |  | March 31, 2025
Long-lived assets |  |  |
United States | $ | 3,096 |  |  | $ | 2,877 |
Foreign | 261 |  |  | 306 |
Total long-lived assets | $ | 3,357 |  |  | $ | 3,183 |

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- Definition The entire disclosure for reporting segments including data and tables. 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