Contradictions Unveiled: McKesson's Q3 2025 Earnings Call Highlights Acquisition Strategies, Cost Optimizations, and Revenue Projections

These are the key contradictions discussed in McKesson's latest 2025 Q3 earnings call, specifically including: Botanical Labs acquisition strategy, MedSurg segment cost optimization programs, GLP-1 growth trends and expectations, and revenue expectations for the Medical-Surgical segment:



Revenue and Profit Growth:
- McKesson reported strong revenue growth of 18% to $95.3 billion and adjusted operating profit growth of 16% to $1.5 billion in Q3 of fiscal 2025.
- Growth was driven by solid double-digit increases in the U.S. Pharmaceutical and prescription technology solutions segments, led by higher volumes from retail national account customers and specialty product distribution.

U.S. Pharmaceutical Segment Performance:
- The U.S. Pharmaceutical segment saw revenue increase by 19% to $87.1 billion, with growth in specialty products and higher volumes in oncology and specialty provider settings.
- The increase was supported by strong demand in GLP-1 medications, which grew 45% from the previous year.

Medical Surgical Segment Challenges:
- Medical Surgical solutions segment experienced a 3% decline in revenues to $2.9 billion due to lower-than-expected volumes for seasonal vaccines and illness testing.
- This was attributed to a softer illness season, with fewer illnesses compared to previous years, impacting demand in primary care sites.

Strategic Acquisitions and Investments:
- McKesson announced the signing of a definitive agreement to acquire a controlling interest in PRISM Vision Holdings, with expectations of significant value creation in the retinal care sector.
- The acquisition aligns with McKesson's strategy to expand its specialty services platform, leveraging existing strengths in distribution and service capabilities.