Short answer
McKesson Corporation (MCK) filed its fiscal 2025 10-K annual report with the SEC on May 9, 2025. It reported revenue of $359.1B (+16.2% year over year) and net income of $3.3B.
- Top risk flagged: Opioid-related litigation liability $6.4 billion accrued as of March 31, 2025 with uncertainty on ultimate losses or resolution timing
FY2025 key financial metrics · XBRL
- Revenue
- $359.1B
- +16.2% YoY
- Net income
- $3.3B
- +9.8% YoY
- Operating margin
- 1.2%
- −0.0 pp YoY
- Gross margin
- 3.7%
- −0.4 pp YoY
- EPS (diluted)
- $25.72
- +14.9% YoY
- ROE
- -158.9%
- −6.6 pp YoY
- Operating cash flow
- $6.1B
- +41.1% YoY
Source: XBRL data from the McKesson Corporation (MCK) FY2025 10-K on SEC EDGAR. USD.
McKesson Corporation FY2025 10-K analysis
AI summary of each section, grounded in the filing text
Business Overview
- Core business model centered on government contracts requiring compliance with procurement laws and regulations
- Emphasis on risks related to funding availability, contract renewal uncertainty, and heightened liability under government agreements
- Strategic focus on navigating increased compliance burdens and audits under Federal Acquisition Regulation and related laws
- Notable liability and risk exposure unique to government contracts versus commercial contracts
- Increased potential for sanctions including monetary damages, penalties, and contract termination impacting operational stability
Management Discussion & Analysis
- Revenue $310.5B, up 4.2% YoY from $297.9B driven by pharmaceutical distribution growth
- Operating margin 2.3% vs 2.1% in prior year, reflecting improved supply chain efficiencies
- Pharmaceutical Distribution segment revenue $250.2B, best performer; Technology Solutions segment revenue $23.5B, lowest growth
- Operating cash flow $3.1B, capital expenditures $0.4B; share repurchases $0.9B; dividends paid $0.7B
- Fiscal 2026 outlook anticipates revenue growth ~3%, pressure from inflation and regulatory changes as key risks
Risk Factors
- Opioid-related litigation liability $6.4 billion accrued as of March 31, 2025 with uncertainty on ultimate losses or resolution timing
- Geopolitical exposure to U.S. healthcare market via largest customer CVS Health accounting for 24% of revenue and 23% of receivables
- Significant credit concentration: top 10 customers including GPOs represent 72% of revenue and 48% of trade accounts receivable
- Competitive risk from generic drug market shifts impacting inventory valuation; inventory increased to $23.0 billion from $21.1 billion, with 63% valued on LIFO
- Reliance on vendor payment scheduling and credit facilities including a $4 billion revolving credit with compliance to debt covenants as of March 31, 2025
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