Restructuring, Impairment, and Related Charges, Net

3 Months Ended

Jun. 30, 2026

Restructuring and Related Activities [Abstract]

Restructuring, Impairment, and Related Charges, Net

FY 2027 restructuring initiatives

During the first quarter of fiscal 2027, the Company approved multi-year initiatives within Corporate to further optimize its operating model and align certain enterprise support functions with the Company's long-term strategic priorities. These initiatives include organizational changes, process enhancements, and the implementation of automation solutions designed to improve efficiency and productivity. The Company anticipates total charges of approximately $230 million to $310 million, consisting primarily of severance and employee-related costs and exit-related costs. The Company recorded immaterial charges associated with these initiatives during the first quarter of fiscal 2027. These programs are expected to be substantially complete by the end of fiscal 2028.

FY 2026 restructuring initiatives

During the fourth quarter of fiscal 2026, the Company approved an initiative within its Prescription Technology Solutions segment to increase operational efficiencies and cost optimization efforts, with the intent of aligning with the Company’s long-term strategy. The initiative includes headcount reductions, the exit or downsizing of certain facilities, and other costs. The Company anticipates total charges between $200 million and $250 million, consisting primarily of employee severance and other employee-related costs, and facility and other exit-related costs, including long-lived asset impairments. The Company recorded $20 million of charges associated with this initiative in the fourth quarter of fiscal 2026, primarily related to asset impairments, as well as employee severance and other employee-related costs. This program is anticipated to be substantially complete by the end of fiscal 2029. For the three months ended June 30, 2026, the Company recorded charges of $61 million, which includes asset impairments, severance and other employee-related costs.

FY 2025 restructuring initiatives

During fiscal 2025, the Company approved enterprise-wide initiatives to modernize and accelerate the technology service operating model which were intended to improve business continuity, compliance, operating efficiency and advance investments to streamline the organization. These initiatives include cost reduction efforts and support other rationalization efforts within Corporate, and the Medical-Surgical Solutions and North American Pharmaceutical segments to help realize long-term sustainable growth. The Company anticipates total charges related to these initiatives of $650 million to $700 million, consisting primarily of employee severance and other employee-related costs as well as facility, exit, and other related costs, including long-lived asset impairments. Of this amount, $468 million of charges were recorded as of March 31, 2026. These programs are anticipated to be substantially complete in fiscal 2028. For the three months ended June 30, 2026 and 2025, the Company recorded charges of $45 million and $38 million related to these initiatives, which includes facility exit and other related costs, as well as severance and other employee-related costs.

The Company recorded total restructuring, impairment, and related charges, net of $136 million and $47 million for the three months ended June 30, 2026 and 2025, respectively. These charges were included in “Restructuring, impairment, and related charges, net” in the Condensed Consolidated Statement of Operations.

Restructuring, impairment, and related charges, net for the three months ended June 30, 2026 and 2025 consisted of the following:


	Three Months Ended June 30, 2026
(In millions)	North American Pharmaceutical (1)		Prescription Technology Solutions (1)		Medical-Surgical Solutions (1)		Corporate (1)		Total
Severance and employee-related costs, net	$	—	$	11	$	14	$	7	$	32
Exit and other-related costs (2)	1		10		9		37		57
Asset impairments and accelerated depreciation	1		40		—		6		47
Total	$	2	$	61	$	23	$	50	$	136

(1)Includes costs related to operational efficiencies and cost optimization efforts to support the Company’s North American Pharmaceutical segment, Prescription Technology Solutions segment, Medical-Surgical Solutions segment, and Corporate activities.

(2)Exit and other-related costs consist of accruals for costs to be incurred without future economic benefits, project consulting fees, and other exit costs expensed as incurred.


	Three Months Ended June 30, 2025
(In millions)	North American Pharmaceutical (1)		Medical-Surgical Solutions (1)		Corporate (1)		Total
Severance and employee-related costs, net	$	—	$	5	$	(1)	$	4
Exit and other-related costs (2)	1		12		28		41
Asset impairments and accelerated depreciation	—		—		2		2
Total	$	1	$	17	$	29	$	47

(1)Includes costs related to operational efficiencies and cost optimization efforts to support the Company’s North American Pharmaceutical segment, Medical-Surgical Solutions segment, and Corporate activities.

(2)Exit and other-related costs consist of accruals for costs to be incurred without future economic benefits, project consulting fees, and other exit costs expensed as incurred.

The following table summarizes the activity related to the liabilities associated with the Company’s restructuring initiatives for the three months ended June 30, 2026:


(In millions)	North American Pharmaceutical		Prescription Technology Solutions		Medical-Surgical Solutions		Corporate		Total
Balance, March 31, 2026 (1)	$	18	$	3	$	10	$	13	$	44
Restructuring, impairment, and related charges, net	2		61		23		50		136
Non-cash charges	(1)		(40)		—		(6)		(47)
Cash payments	(3)		—		(16)		(40)		(59)

Balance, June 30, 2026 (2)	$	16	$	24	$	17	$	17	$	74

(1)As of March 31, 2026, the total reserve balance was $44 million, of which $30 million was recorded within “Other accrued liabilities” and $14 million was recorded within “Other non-current liabilities” in the Company’s Condensed Consolidated Balance Sheet.

(2)As of June 30, 2026, the total reserve balance was $74 million, of which $51 million was recorded within “Other accrued liabilities” and $23 million was recorded within “Other non-current liabilities” in the Company’s Condensed Consolidated Balance Sheet.