How did McKesson's Distribution Solutions perform in 2025?

McKesson's Distribution Solutions performed robustly in 2025, driven by strategic focus and operational enhancements:

1. Revenue Growth: The U.S. Pharmaceutical segment led the growth, with a 19% increase in revenue, reaching $87.11 billion. This was primarily fueled by higher prescription volumes and strong performance in the oncology platform.
2. Adjusted Profitability: McKesson improved its adjusted operating profit to $1.5 billion, reflecting a 16% year-over-year increase. This was supported by operational leverage and capital allocation efficiencies.
3. Earnings Performance: The company reported earnings per diluted share (EPS) of $6.95, slightly below the estimated $7.30, but adjusted EPS of $8.03 exceeded expectations. This indicates robust profitability and strong operational performance.
4. Market Expansion and Acquisitions: McKesson's acquisition of an 80% controlling interest in PRISM Vision Holdings is a strategic move to enhance its leadership in community practice management and specialty solutions. This acquisition is expected to contribute positively to the company's growth and profitability over the next few years.
5. Financial Outlook: McKesson raised its adjusted EPS guidance for fiscal 2025 to a range of $32.55 to $32.95, indicating a 19% to 20% growth compared to the previous year. This optimistic outlook reflects confidence in the company's continued growth and profitability.

In summary, McKesson's Distribution Solutions performed exceptionally well in 2025, driven by strong revenue growth, improved profitability, and strategic acquisitions that are poised to enhance its market position and long-term value.