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Income Taxes (Tables) | 12 Months Ended
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Mar. 31, 2026
Income Tax Disclosure [Abstract] |
Schedule of Income (Loss) From Continuing Operations Before Income Taxes |
| Years Ended March 31,
(In millions) | 2026 |  | 2025 |  | 2024
Income from continuing operations before income taxes |  |  |  |  |
U.S. | $ | 4,300 |  |  | $ | 3,735 |  |  | $ | 2,597 |
Foreign | 1,901 |  |  | 624 |  |  | 1,192 |
Income from continuing operations before income taxes | $ | 6,201 |  |  | $ | 4,359 |  |  | $ | 3,789 |
Schedule of Income Tax Expense (Benefit) Related to Continuing Operations | Income tax expense related to continuing operations consists of the following:
| Years Ended March 31,
(In millions, except percentages) | 2026 |  | 2025 |  | 2024
Current |  |  |  |  |
Federal | $ | 437 |  |  | $ | 552 |  |  | $ | 867 |
State | 217 |  |  | 182 |  |  | 231 |
Foreign | 218 |  |  | 254 |  |  | 134 |
Total current | 872 |  |  | 988 |  |  | 1,232 |
Deferred |  |  |  |  |
Federal | 248 |  |  | 102 |  |  | (360) |
State | 57 |  |  | 5 |  |  | (133) |
Foreign | (75) |  |  | (217) |  |  | (110) |
Total deferred | 230 |  |  | (110) |  |  | (603) |
Income tax expense | $ | 1,102 |  |  | $ | 878 |  |  | $ | 629 |
Reported income tax rate | 17.8 | % |  | 20.1 | % |  | 16.6 | %
Schedule of Reconciliation Between Effective Tax Rate on Income From Continuing Operations and Statutory Tax Rate | The following table presents a reconciliation of the U.S. federal statutory income tax rate to the Company’s effective tax rate for the year ended March 31, 2026, in accordance with ASU 2023-09.
| Year Ended March 31, 2026 |  |
(In millions, except percentages) | Amount |  | Percent |  |
U.S. federal statutory tax rate | $ | 1,302 |  |  | 21.0 | % |  |
State and local income taxes, net of federal income tax effect (1) | 213 |  |  | 3.4 |  |  |
Foreign tax effects |  |  |  |  |
Luxembourg |  |  |  |  |
Valuation allowance release | (119) |  |  | (1.9) |  |  |
Other | 2 |  |  | 0.0 |  |  |
Germany |  |  |  |  |
Divestiture of investment | (99) |  |  | (1.6) |  |  |
Other foreign jurisdictions | (26) |  |  | (0.4) |  |  |
Effect of cross-border tax laws (2) | (30) |  |  | (0.5) |  |  |
Tax credits (2) | (27) |  |  | (0.4) |  |  |
Nontaxable or nondeductible items | (21) |  |  | (0.3) |  |  |
Changes in unrecognized tax benefits (2) | 65 |  |  | 1.0 |  |  |
Other adjustments |  |  |  |  |
Liquidation of investment | (158) |  |  | (2.5) |  |  |
Effective tax rate | $ | 1,102 |  |  | 17.8 | % |  |
(1)State income taxes in California, Illinois, New Jersey, Oregon and Pennsylvania represented the majority (greater than 50%) of the tax effect within this category. (2)Reconciling items are presented on a gross basis, except for cross-border tax effects, tax credits and changes in unrecognized tax benefits (“UTBs”). Income tax expense related to continuing operations for the years ended March 31, 2025 and 2024, prior to the adoption of ASU 2023-09, is reconciled from the U.S. federal statutory income tax rate to the Company’s effective income tax rate as follows:
|  |  | Years Ended March 31,
(In millions) |  |  | 2025 |  | 2024
Income tax expense at federal statutory rate |  |  | $ | 915 |  |  | $ | 796 |
State income taxes, net of federal tax benefit |  |  | 145 |  |  | 104 |
Tax effect of foreign operations |  |  | (25) |  |  | (16) |
Foreign-derived intangible income |  |  | (83) |  |  | (67) |
Unrecognized tax benefits and settlements |  |  | 91 |  |  | 116 |
Net tax benefit on intellectual property repatriation and sales |  |  | (258) |  |  | (104) |
Canadian disposal transaction loss |  |  | 140 |  |  | — |
Valuation allowance release |  |  | — |  |  | (157) |
Share-based compensation |  |  | (42) |  |  | (37) |
Other, net |  |  | (5) |  |  | (6) |
Income tax expense |  |  | $ | 878 |  |  | $ | 629 |
Schedule of Deferred Tax Balances | Deferred tax balances consisted of the following:
| March 31,
(In millions) | 2026 |  | 2025
Assets |  |  |
Receivable allowances | $ | 69 |  |  | $ | 136 |
Opioid-related litigation and claims | 623 |  |  | 680 |
Compensation and benefit-related accruals | 333 |  |  | 287 |
Loss and credit carryforwards | 996 |  |  | 847 |
Lease obligations | 429 |  |  | 423 |
Other | 194 |  |  | 236 |
Subtotal | 2,644 |  |  | 2,609 |
Less: valuation allowance | (769) |  |  | (644) |
Total assets | 1,875 |  |  | 1,965 |
Liabilities |  |  |
Inventory valuation and other assets | (2,008) |  |  | (2,139) |
Fixed assets | (303) |  |  | (4) |
Lease right-of-use assets | (432) |  |  | (434) |
Other | (30) |  |  | (50) |
Total liabilities | (2,773) |  |  | (2,627) |
Net deferred tax liability | $ | (898) |  |  | $ | (662) |
Long-term deferred tax asset | $ | 432 |  |  | $ | 367 |
Long-term deferred tax liability | (1,330) |  |  | (1,029) |
Net deferred tax liability | $ | (898) |  |  | $ | (662) |
Schedule of Cash Paid for Income Taxes | Cash paid for income taxes, net of refunds received, by jurisdiction pursuant to the disclosure requirements of ASU 2023‑09 for the year ended March 31, 2026 was as follows:
| Year Ended March 31,
(In millions) | 2026
U.S. Federal | $ | 839 |
U.S. States | 131
Foreign |
Canada | 114
United Kingdom | 103
Others | 24
Total cash taxes paid, net of refunds | $ | 1,211 |
Schedule of Gross Unrecognized Tax Benefits | The following table summarizes the activity related to the Company’s gross unrecognized tax benefits for the last three fiscal years:
| Years Ended March 31,
(In millions) | 2026 |  | 2025 |  | 2024
Unrecognized tax benefits at beginning of period | $ | 1,532 |  |  | $ | 1,463 |  |  | $ | 1,399 |
Additions based on tax positions related to prior years | 30 |  |  | 33 |  |  | 10 |
Reductions based on tax positions related to prior years | (5) |  |  | (43) |  |  | (2) |
Additions based on tax positions related to current year | 36 |  |  | 97 |  |  | 64 |
Reductions based on settlements | — |  |  | (13) |  |  | (8) |
Reductions based on the lapse of the applicable statutes of limitations | (20) |  |  | (7) |  |  | (2) |
Exchange rate fluctuations | 1 |  |  | 2 |  |  | 2 |
Unrecognized tax benefits at end of period | $ | 1,574 |  |  | $ | 1,532 |  |  | $ | 1,463 |

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