What it does
McKesson states that it delivers healthcare products, distribution, technology, and services through four reportable segments. North American Pharmaceutical distributes pharmaceutical drugs and healthcare-related products in the U.S. and Canada, alongside pharmacy services. Oncology & Multispecialty provides specialty distribution, provider services, research, technology, and practice-support offerings. Prescription Technology Solutions connects patients, pharmacies, providers, payers, and biopharma companies around medication access and related services. Medical-Surgical Solutions supplies non-acute and alternate-site U.S. healthcare providers with medical-surgical products, laboratory equipment, pharmaceutical distribution, logistics, and related services.
Source: McKesson Corporation Form 10-K for fiscal 2026, Item 1 — sec.gov
How it makes money
The company reports revenue through North American Pharmaceutical, Oncology & Multispecialty, Prescription Technology Solutions, and Medical-Surgical Solutions. North American Pharmaceutical was the largest reported segment in fiscal 2026, with $336.7 billion of revenue and 83.7% of revenue. Its activities include pharmaceutical distribution and logistics, plus services and solutions for pharmacies and other healthcare participants. Oncology & Multispecialty reported $48.4 billion of revenue, or 12.0% of revenue, from specialty distribution and provider-focused solutions. The other two segments provide prescription technology services and medical-surgical distribution and services, respectively. The filing says prior segment information was recast after a fiscal 2026 reporting-structure change.
| Segment | Revenue, FY2026 | Share | Change on the year |
|---|---|---|---|
| North American Pharmaceutical | $336.7 billion | 83.7% | 10.6% |
| Oncology & Multispecialty | $48.4 billion | 12.0% | 31.4% |
| Medical-Surgical Solutions | $11.5 billion | 2.86% | 1.12% |
| Prescription Technology Solutions | $5.8 billion | 1.44% | 11.3% |
Source: McKesson Corporation Form 10-K for fiscal 2026, Item 1 — sec.gov
Customers and geography
The company serves biopharma companies, care providers, pharmacies, manufacturers, governments, and other healthcare participants. Its North American Pharmaceutical operations serve the U.S. and Canada; Medical-Surgical Solutions serves U.S. non-acute and alternate-site providers. During fiscal 2026, the company states that its ten largest customers, including group purchasing organizations, represented approximately 73% of consolidated revenue. CVS Health Corporation represented approximately 24% of consolidated revenue, while the next two largest customers represented 11% and 10%. The filing states that substantially all of these concentrated revenues and related receivables were in North American Pharmaceutical.
| Segment | Revenue, FY2026 | Share | Change on the year |
|---|---|---|---|
| North American Pharmaceutical | $336.7 billion | 83.7% | 10.6% |
| Oncology & Multispecialty | $48.4 billion | 12.0% | 31.4% |
| Medical-Surgical Solutions | $11.5 billion | 2.86% | 1.12% |
| Prescription Technology Solutions | $5.8 billion | 1.44% | 11.3% |
Source: McKesson Corporation Form 10-K for fiscal 2026, Item 1 — sec.gov
Competition
McKesson states that it operates in highly competitive North American markets. The filing names Cencora, Inc. and Cardinal Health, Inc. as its primary competitors in distribution, wholesaling, and logistics, and says they also offer combinations of capabilities that compete with Oncology & Multispecialty. The company describes competition from full-line, short-line, and specialty distributors, manufacturers distributing directly, third-party logistics companies, payer organizations, specialty pharmacies, technology firms, and medical-supply distributors. The filing lists price, quality of service, product assortment, innovation, emerging-technology adoption, and sometimes customer convenience as primary competitive factors.
Source: McKesson Corporation Form 10-K for fiscal 2026, Item 1 — sec.gov
Key risks
- The filing states that the company experiences costly and disruptive legal disputes.
- It is subject to extensive, complex, challenging, and frequently changing healthcare, environmental, and other laws, including controlled-substance compliance requirements.
- The company states that cybersecurity incidents could significantly compromise technology systems or result in material data breaches.
- The adoption and use of AI in business operations exposes it to risks and uncertainties.
- Healthcare reform, including changes in pricing and reimbursement models, could adversely affect it.
- The company states that difficulties sourcing or selling products, and disruptions or changes in product supply, can adversely affect it.
Source: McKesson Corporation Form 10-K for fiscal 2026, Item 1A — sec.gov
People and operations
The company reports 43,000 employees as of fiscal 2026. The filing states that more than 43,000 employees worldwide included 1,400 part-time employees, with approximately 38,000 in the U.S., 5,000 in Canada, and 400 elsewhere. It also uses contractors or consultants for certain projects, processes, and operations. Within U.S. Pharmaceutical, the company operates through 27 U.S. distribution centers, including two strategic redistribution centers. Medical-Surgical Solutions distributes through a U.S. network of distribution centers. The filing does not state that the business is seasonal.
Source: McKesson Corporation Form 10-K for fiscal 2026, Item 1 — sec.gov