McKesson (MCK) FY2026: Revenue $403B and GAAP EPS +49%, But Underlying Operating Profit Grew ~10–19%
All figures from McKesson's Form 10-K for the fiscal year ended March 31, 2026, and the company's May 7, 2026 fourth-quarter and full-year earnings release. Dollars in U.S. currency.
McKesson's fiscal 2026 GAAP diluted EPS rose 49.2% to $38.38 — but the operating business improved at roughly one-fifth of that pace. Revenue crossed $403.4 billion (+12.4%) and operating income leapt from $4,422 million to $6,212 million, yet a $480 million net gain on the Norway divestiture, a $210 million LIFO credit, and the absence of the prior year's $667 million Canadian remeasurement charge together account for the bulk of the swing. Strip the one-offs out of both years and underlying operating income grew roughly 10%. That gap matters because McKesson is simultaneously rebuilding itself — buying majority stakes in oncology and ophthalmology practices, selling Norway, and preparing to separate Medical-Surgical Solutions with Apollo as a minority partner — while running a business whose gross margin is only 3.6% and shrinking.
1. Consolidated Balance Sheet
1-1. Principal asset movements
| Item | FY2025 ($M) | FY2026 ($M) | Change % |
|---|---|---|---|
| Cash and cash equivalents | 5,691 | 3,975 | −30.2 |
| Receivables, net | 25,643 | 27,985 | +9.1 |
| Inventories, net | 23,001 | 24,207 | +5.2 |
| Property, plant and equipment, net | 2,502 | 2,668 | +6.6 |
| Goodwill | 10,022 | 11,316 | +12.9 |
| Intangible assets, net | 1,464 | 4,079 | +178.6 |
| Total assets | 75,140 | 82,323 | +9.6 |
The single loudest line is intangible assets, which nearly tripled. That is the accounting footprint of two acquisitions completed inside fiscal 2026: an approximately 80% controlling interest in PRISM Vision for about $850 million in cash (completed April 2, 2025) and an approximately 70% controlling interest in Core Ventures, the business services arm of Florida Cancer Specialists, for about $2.49 billion in cash (completed June 2, 2025). Cash used for acquisitions, net of cash acquired, was $3,340 million against just $24 million a year earlier. Amortization is already responding — total amortization of $473 million in FY2026 versus $394 million in FY2025, of which the acquisition-related portion that management's adjusted EPS excludes rose from $226 million to $276 million. That charge will keep climbing for years as the newly recognized intangibles are amortized over their useful lives: a non-cash drag on GAAP earnings, but one that runs off rather than lasting forever.
