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Segments of Business | 12 Months Ended
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Mar. 31, 2026
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, Prescription Technology Solutions, and M edical-Surgical Solutions. The Company’s former Norwegian operations are included in Other. 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 the Company’s 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 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 the U.S Oncology Network, 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 the 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 Prescription Technology Solutions 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. Prescription Technology Solutions serves the Company’s biopharma and life sciences partners, delivering innovative solutions that help people get the medicine they need to live healthier lives. This segment offers technology services, which includes electronic prior authorization, prescription price transparency, benefit insight, dispensing support services, and patient enrollment, in addition to third-party logistics and wholesale distribution support designed to benefit stakeholders. The Medical-Surgical Solutions segment is a leading provider of medical-surgical supplies, laboratory equipment and pharmaceutical distribution, logistics, and other services to non-acute settings in the U.S. These include 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, hospice and home health care agencies, government facilities and online marketplaces and retailers. This segment offers national brand medical-surgical products as well as its own line of more than 4,000 high-quality products through a network of distribution centers in the U.S. During fiscal 2026, the Company announced its intention to separate this segment into an independent company. As a part of the separation strategy, on April 20, 2026, the Company announced it had entered into a definitive agreement under which funds managed by affiliates of Apollo Global Management, Inc. (“Apollo Funds”) will acquire approximately 13% minority ownership interest in the Medical‑Surgical Solutions segment through an investment of approximately $1.25 billion in the segment’s convertible preferred equity. This transaction is subject to regulatory approvals and customary closing conditions. The Company’s former Norwegian operations, which provided distribution and services to wholesale and retail customers in Norway where it owned, partnered, or franchised with retail pharmacies, were included in Other. During fiscal 2026, the Company completed the previously announced transaction to sell its Norway disposal group. 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 consolidated totals was as follows:
| Years Ended March 31,
(In millions) | 2026 |  | 2025 |  | 2024
Segment revenues (1) |  |  |  |  |
North American Pharmaceutical | $ | 336,652 |  |  | $ | 304,507 |  |  | $ | 261,368 |
Oncology & Multispecialty | 48,423 |  |  | 36,862 |  |  | 30,490 |
Prescription Technology Solutions | 5,805 |  |  | 5,216 |  |  | 4,769 |
Medical-Surgical Solutions | 11,507 |  |  | 11,380 |  |  | 11,309 |
Other | 1,043 |  |  | 1,086 |  |  | 1,015 |
Total revenues | $ | 403,430 |  |  | $ | 359,051 |  |  | $ | 308,951 |
Other segment expense, net (2) |  |  |  |  |
North American Pharmaceutical (3) | $ | 332,994 |  |  | $ | 301,562 |  |  | $ | 259,030 |
Oncology & Multispecialty (4) | 47,274 |  |  | 36,095 |  |  | 29,783 |
Prescription Technology Solutions (5) | 4,761 |  |  | 4,341 |  |  | 3,934 |
Medical-Surgical Solutions (6) | 10,569 |  |  | 10,601 |  |  | 10,354 |
Other (7) | 453 |  |  | 1,032 |  |  | 958 |
Total other expense, net | $ | 396,051 |  |  | $ | 353,631 |  |  | $ | 304,059 |
Segment operating profit |  |  |  |  |
North American Pharmaceutical | $ | 3,658 |  |  | $ | 2,945 |  |  | $ | 2,338 |
Oncology & Multispecialty | 1,149 |  |  | 767 |  |  | 707 |
Prescription Technology Solutions | 1,044 |  |  | 875 |  |  | 835 |
Medical-Surgical Solutions | 938 |  |  | 779 |  |  | 955 |
Other | 590 |  |  | 54 |  |  | 57 |
Subtotal | 7,379 |  |  | 5,420 |  |  | 4,892 |
Corporate expenses, net (8) | (931) |  |  | (796) |  |  | (851) |
Interest expense | (247) |  |  | (265) |  |  | (252) |
Income before income taxes | $ | 6,201 |  |  | $ | 4,359 |  |  | $ | 3,789 |
Segment depreciation and amortization (9) |  |  |  |  |
North American Pharmaceutical | $ | 134 |  |  | $ | 155 |  |  | $ | 197 |
Oncology & Multispecialty | 240 |  |  | 148 |  |  | 137 |
Prescription Technology Solutions | 82 |  |  | 86 |  |  | 84 |
Medical-Surgical Solutions | 96 |  |  | 91 |  |  | 82 |
Other | 4 |  |  | 18 |  |  | 14 |
Corporate | 173 |  |  | 138 |  |  | 121 |
Total segment depreciation and amortization | $ | 729 |  |  | $ | 636 |  |  | $ | 635 |
Segment expenditures for long-lived assets (10) |  |  |  |  |
North American Pharmaceutical | $ | 334 |  |  | $ | 243 |  |  | $ | 159 |
Oncology & Multispecialty | 78 |  |  | 88 |  |  | 96 |
Prescription Technology Solutions | 4 |  |  | 11 |  |  | 31 |
Medical-Surgical Solutions | 94 |  |  | 163 |  |  | 159 |
Other | 10 |  |  | 17 |  |  | 13 |
Corporate | 225 |  |  | 337 |  |  | 229 |
Total segment expenditures for long-lived assets | $ | 745 |  |  | $ | 859 |  |  | $ | 687 |
(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 43% 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 former 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 include cost of sales, total operating expenses, and other income, net, for the Company’s reportable segments. (3)The Company’s North American Pharmaceutical other segment expense, net includes the following: •a credit of $210 million, a charge of $82 million, and a credit of $157 million for the years ended March 31, 2026, 2025, and 2024, respectively, related to the LIFO method of accounting for inventories. These amounts were recorded within “Cost of sales” in the Company’s Consolidated Statements of Operations; •cash receipts for the Company’s share of antitrust legal settlements were $23 million, $444 million, and $244 million for the years ended March 31, 2026, 2025, and 2024, respectively. These gains were recorded within “Cost of sales” in the Company’s Consolidated Statements of Operations; •a charge of $605 million for the year ended March 31, 2025 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;” •related to the bankruptcy of the Company’s customer Rite Aid Corporation (including certain of its subsidiaries, “Rite Aid”), the Company recognized a credit of $206 million for the year ended March 31, 2025 to reassess the previously reserved prepetition balance and a charge of $725 million for the year ended March 31, 2024 which primarily reflects the initial provision for bad debts. These were recorded within “Selling, distribution, general, and administrative expenses” in the Company’s Consolidated Statements of Operations; •restructuring charges of $59 million for the year ended March 31, 2025 for restructuring initiatives, as discussed in Financial Note 3, “Restructuring, Impairment, and Related Charges, Net;” and •charges of $57 million and $74 million for the years ended March 31, 2025 and 2024, respectively, related to the estimated liability for opioid-related claims, as discussed in Financial Note 17, “Commitments and Contingent Liabilities." (4)The Company’s Oncology & Multispecialty other segment expense, net includes the following: •charges of $96 million for the year ended March 31, 2026 related to the acquisition and integration of PRISM Vision and Core Ventures, which were recorded within “Selling, distribution, general, and administrative expenses” in the Company’s Consolidated Statement of Operations; •a net gain of $51 million for the year ended March 31, 2026 related to the sale of an investment and market decisions, which was recorded within “Selling, distribution, general, and administrative expenses” in the Company’s Consolidated Statement of Operations; and •a loss of $43 million for the year ended March 31, 2025 related to one of the Company’s equity method investments, which was recorded within “Other income, net” in the Company’s Consolidated Statement of Operations. (5)The Company’s Prescription Technology Solutions other segment expense, net includes gains of $78 million in fiscal 2024 resulting from fair value adjustments of the Company’s contingent consideration liability related to the RxSS acquisition, which were recorded within “Selling, distribution, general, and administrative expenses” in the Company’s Consolidated Statement of Operations. (6)The Company’s Medical-Surgical Solutions other segment expense, net includes the following: •charges of $25 million for the year ended March 31, 2026 related to the Company’s planned separation of its Medical‑Surgical Solutions segment, which were recorded within “Selling, distribution, general, and administrative expenses” in the Company’s Consolidated Statement of Operations; and •restructuring charges of $43 million and $204 million for the years ended March 31, 2026 and 2025, respectively, for restructuring initiatives, as discussed in Financial Note 3, “Restructuring, Impairment, and Related Charges, Net.” (7)The Company’s other segment expense, net for Other for the year ended March 31, 2026 includes a net gain of $503 million related to the sale of the Norway disposal group, as discussed in Financial Note 2, “Business Acquisitions and Divestitures.” (8)Corporate expenses, net, includes the following: •charges of $52 million for the year ended March 31, 2026 related to the Company’s planned separation of its Medical‑Surgical Solutions business, which were recorded within “Selling, distribution, general, and administrative expenses” in the Company’s Consolidated Statement of Operations; •a net charge of $23 million for the year ended March 31, 2026 related to the sale of our Norway disposal group as discussed in Financial Note 2, “Business Acquisitions and Divestitures;” •a charge of $87 million for the year ended March 31, 2025 related to the termination of the U.K. pension plan as discussed in Financial Note 13, “Pension Benefits;” •a charge of $62 million for the year ended March 31, 2025 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 $101 million and a net loss of $24 million for the years ended March 31, 2025 and 2024, respectively, 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 15, “Fair Value Measurements;” •net charges of $51 million and $73 million for the years ended March 31, 2025 and 2024, respectively, related to the estimated liability for opioid-related claims, as discussed in Financial Note 17, “Commitments and Contingent Liabilities;” •restructuring charges of $158 million, $68 million, and $64 million for the years ended March 31, 2026, 2025, and 2024, respectively, for restructuring initiatives, as discussed in Financial Note 3, “Restructuring, Impairment, and Related Charges, Net;” and •charges of $11 million, $14 million, and $35 million for the years ended March 31, 2026, 2025, and 2024, respectively, for opioid-related costs, primarily litigation expenses, which were recorded within “Selling, distribution, general, and administrative expenses” in the Company’s Consolidated Statements of Operations. (9)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. (10)Long-lived assets consist of property, plant, and equipment, net and capitalized software. Long-lived assets by geographic areas were as follows:
| March 31,
(In millions) | 2026 |  | 2025
Long-lived assets |  |  |
United States | $ | 3,177 |  |  | $ | 2,877 |
Foreign | 255 |  |  | 306 |
Total long-lived assets | $ | 3,432 |  |  | $ | 3,183 |

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