What impacted McKesson's operating income in Q1 2025?

McKesson's operating income in Q1 2025 was not impacted by any specific event or factor, as the company's operating income for that quarter is not available. However, we can infer some potential factors that could have influenced McKesson's operating income based on the available data and news articles.

1. Revenue Increase: McKesson reported an 18% increase in revenues to $95.3 billion for the three months ended December 31, 2024, compared to the same period in the previous year. This increase was primarily driven by higher volumes from retail national account customers and growth in specialty pharmaceuticals. The gross profit for the quarter increased by 4% to $3.3 billion, with a gross profit margin of 3.45%. This suggests that McKesson's operating income in Q1 2025 may have been positively impacted by this revenue growth and improved gross profit.
2. Cost Optimization Initiatives: The company's operating profit increased by 4% to $294 million in Q3 2025, driven by operational efficiencies from cost optimization initiatives. Although this information is from Q3 2025, it indicates that McKesson has been implementing cost-saving measures that could have a positive impact on operating income. It is reasonable to assume that similar initiatives may have been in place or continued in Q1 2025, potentially contributing to a positive operating income.
3. Working Capital Changes: McKesson reported a net cash outflow from operating activities of $1.7 billion for the nine months ended December 31, 2024, compared to a cash inflow of $167 million in the prior year period. This change was primarily due to changes in working capital, including increases in receivables and inventories. These working capital changes could have an impact on operating income, with negative effects on cash flow but potentially positive effects on revenue and profitability if managed efficiently.

In conclusion, while specific data on McKesson's operating income in Q1 2025 is not available, it is likely that the company's revenue growth, particularly in specialty pharmaceuticals, and cost optimization initiatives had a positive impact on operating income. The changes in working capital may have also influenced the operating income, albeit with some negative effects on cash flow.