McKesson Corporation (MCK): Business Model Canvas [Dec-2025 Updated]

As someone who's spent the last decade leading analyst teams, I can tell you McKesson Corporation's business model right now isn't just about moving boxes; it's a calculated pivot. You see the sheer scale in the FY2025 U.S. Pharmaceutical distribution revenue of $327.72 B, but the real story is the strategic push into higher-margin specialty services, supported by $5.2 billion in Free Cash Flow that same year. I've mapped out the nine essential blocks-from their massive distribution network to their growing Prescription Technology Solutions fees-so you can see exactly where this healthcare giant is placing its bets for the next decade. Dive in below for the precise breakdown.

McKesson Corporation (MCK) - Canvas Business Model: Key Partnerships

You're looking at the core relationships McKesson Corporation relies on to move product and services in late 2025. These aren't just vendor lists; they are the structural anchors of their distribution and specialty health platforms.

Biopharma manufacturers for drug sourcing and distribution.

McKesson Corporation partners with biopharma companies across the spectrum, from large manufacturers to smaller biotech firms, to distribute a wide array of therapies. This includes handling specialty medications, branded drugs, plasma products, generics, and complex cell and gene therapies. The company works constantly with these partners to understand evolving service needs, which can range from core distribution to special handling and cold chain logistics for specific products. McKesson is also a member of the Duke-Margolia ReVAMP Drug Supply Chain Consortium, which focuses on creating policies for a reliable drug supply chain via advanced manufacturing.

• Partnerships cover distribution for specialty medications, branded drugs, cell and gene therapies, plasma products, and generics.
• The U.S. Pharmaceutical Segment generated $327.72 billion in revenue for fiscal year 2025.
• The company's overall consolidated revenue for fiscal year 2025 was $359.05 billion.

Large national retail pharmacy chains and health systems (e.g., Optum contract).

Distribution agreements with major players are critical, especially as prescription volume shifts to alternate care sites. McKesson Corporation has a long-standing relationship with CVS Health, having signed an agreement in principle to extend its pharmaceutical distribution partnership through June 2027. The company also secured a recent contract win with Optum, which is strictly pharmaceutical-related. Growth in the U.S. Pharmaceutical business for fiscal 2025 was driven by increased prescription volumes from retail national customers. McKesson also continues to expand its oncology platform, which includes The US Oncology Network, welcoming groups like Illinois CancerCare and Tennessee Cancer Specialists in the past year, adding 118 providers.

• Growth in the U.S. Pharmaceutical unit revenue for fiscal 2025 was 17.6%.
• The U.S. Pharmaceutical Segment Operating Profit saw an increase of 17% in the fourth quarter of fiscal 2025, driven by higher volumes from retail national account customers.

Group Purchasing Organizations (GPOs) for collective buying power.

McKesson Corporation supports partners through its Specialty and Retail Group Purchasing Organizations (GPOs) to enhance efficiency and negotiate pricing. These GPOs help partners manage costs, especially in the specialty and pharmaceutical space.

Technology and data partners for digital health solutions.

McKesson leverages its technology and insights business, Ontada, to integrate data services with distribution. A key partnership is with the Centers for Medicare & Medicaid Services (CMS), where McKesson's Practice Insights tool, powered by Ontada and utilizing the iKnowMed EHR, was named a Qualified Clinical Data Registry (QCDR) for the ninth consecutive year in 2025. Furthermore, McKesson is building out clinical capabilities through a strong joint venture with Sarah Cannon Research Institute. The company is also collaborating with three mid-sized biotech firms to centralize clinical trial logistics data.

Nonprofits like Angels for Change to fortify the supply chain.

McKesson Corporation is a founding partner of the nonprofit Angels for Change (A4C), which advocates to end drug shortages. This partnership includes Project GOLD, which aims to create an emergency buffer stock of essential chemotherapy drugs prone to shortages. The McKesson Foundation provided a grant to A4C in July 2022 to help expand its operations. Drug shortages are a massive problem; a June 2025 survey indicated they cost US hospitals roughly $900 million and 20 million hours of labor annually. Since 2022, A4C has helped patients access more than 750,000 medicines.

• McKesson is a founding partner of Angels for Change since its inception in 2019.
• Project GOLD pilot members include McKesson, Cencora, and Fresenius Kabi.
• McKesson received the inaugural Drug Shortage Guardian Award from A4C.

McKesson Corporation (MCK) - Canvas Business Model: Key Activities

You're looking at the core engine of McKesson Corporation as of late 2025, which is heavily focused on its foundational role in drug distribution while aggressively expanding into higher-margin specialty areas. Here's the quick math on what drives their operations.

Wholesale distribution of pharmaceuticals across North America remains the bedrock. This activity is primarily housed within the U.S. Pharmaceutical Segment, which generated $327.72 billion in revenue for the full fiscal year ended March 31, 2025, representing a 17.6% increase year-over-year. This single segment accounted for nearly 92% of McKesson Corporation's total consolidated revenue of $359.1 billion in fiscal 2025. McKesson's scale means it delivers about a third of all pharmaceutical products used or consumed in North America.

The network supporting this distribution is vast:

• Connects over 50,000 pharmacies.
• Reaches approximately 985,000 providers.
• Its Health Mart franchise ranked highest in a J.D. Power study for brick-and-mortar chain drugstores.

Specialty drug distribution and oncology practice management represent a key growth vector, often integrated within the U.S. Pharmaceutical segment or the newly highlighted Oncology & Multispecialty segment. For the quarter ended September 2025, the Oncology & Multispecialty segment recorded revenues of $12.04 billion, a year-over-year increase of 31.5%. This segment's adjusted operating profit reached $397 million for that same quarter. This focus is supported by strategic capital deployment, such as the announced acquisition of a controlling stake in Core Ventures for $2.49 billion, expected to close in June 2025.

Operating Prescription Technology Solutions (RxTS) for patient access is the technology-driven component. For the full fiscal year 2025, the Prescription Technology Solutions segment generated $5.22 billion in revenue, up 9.37% from $4.77 billion in fiscal 2024. In the second quarter of fiscal 2025, this segment posted revenues of $1.3 billion and an adjusted segment operating profit of $218 million. Activity here is driven by increased prescription volumes in third-party logistics and technology services, including continued volume growth in prior authorization requests.

Portfolio optimization, like the planned Medical-Surgical separation, signals a strategic shift toward higher-growth areas. McKesson announced its intent to separate the Medical-Surgical Solutions segment on May 8, 2025. For the fiscal year ended March 31, 2025, this segment generated $11.4 billion in revenue, representing only about 3.2% of the total company revenue. Growth for this unit was minimal, with revenue up only 1% versus fiscal 2024, while its operating profit was $773 million. Management expects the separated Medical-Surgical Solutions segment to grow revenue between 2% and 6% in fiscal 2026.

Investing in digital capabilities, including automation and AI is evidenced by specific technology-focused acquisitions and modernization efforts. For instance, the company completed the $850 million acquisition of an 80% interest in PRISM Vision Holdings in April 2025 to enhance practice management solutions. Furthermore, McKesson is actively investing in modernizing its distribution network using automated technologies, such as automated storage and retrieval systems and automated picking systems, to boost productivity and quality.

You can see the segment revenue contribution for the full fiscal year 2025 here:

The full-year 2025 performance included generating $6.1 billion in cash flow from operations and $5.2 billion in Free Cash Flow. Finance: draft the Q3 FY2026 capital expenditure forecast by next Tuesday.

McKesson Corporation (MCK) - Canvas Business Model: Key Resources

You're looking at the core assets that make McKesson Corporation an indispensable part of the U.S. healthcare infrastructure. These aren't just assets; they are the moat that protects their business.

Massive, resilient North American distribution network

McKesson Corporation's scale in distribution is hard to overstate. This network is the engine for their largest business segment, U.S. Pharmaceutical, which accounted for nearly 92% of the company's full-year revenue in Fiscal Year 2025. The company's consolidated revenues for FY2025 hit $359.1 billion.

The physical reach is staggering. McKesson Corporation delivers about one-third of all pharmaceutical products used or consumed in North America. Operationally, this means they ship drugs up to seven days a week, covering 95% of the US population for next-day delivery. The customer base relying on this network is vast, serving over 40,000 pharmacy locations across the U.S. alone.

The sheer scope of this distribution capability is a primary Key Resource:

• Delivers to over 40,000 U.S. pharmacy locations.
• Serves roughly 16,000 health system sites.
• Moves nearly one in every three pharmaceutical units in America.

Proprietary technology platforms for practice management and supply chain

McKesson Corporation embeds technology directly into the delivery and management of care, moving beyond simple logistics. This is crucial for driving efficiency and capturing higher-margin services. The company is actively transforming its model to focus on tech-enabled healthcare services.

For practice management, especially in oncology, McKesson leverages platforms that streamline operations and data reporting. For instance, Practice Insights℠, a performance analytics tool powered by its Ontada business, was named a Qualified Clinical Data Registry (QCDR) by the Centers for Medicare & Medicaid Services (CMS) for the ninth consecutive year in 2025.

This technology suite allows providers utilizing the iKnowMed℠ electronic health record to efficiently submit data directly for MIPS (Merit-based Incentive Payment System) quality measures. Furthermore, the Ontada platform itself is key for generating real-world data (RWD) and real-world evidence (RWE) that can be commercialized with biopharma partners.

Specialty provider solutions and the differentiated oncology platform

McKesson Corporation has built an integrated platform in Oncology & Specialty that combines distribution with high-value services. This focus is a major driver for future growth, with the segment projecting adjusted operating profit growth of 49% to 53% for Fiscal Year 2026.

Key components of this differentiated platform include:

• The US Oncology Network: Supports more than 2,750 independent, community-based providers.
• Ontada: A McKesson business dedicated to oncology, focused on RWD, RWE, and provider technology.
• Sarah Cannon Research Institute (SCRI): Actively enrolling patients in over 700 clinical trials as of late 2025.
• Acquisitions: The acquisition of a controlling interest in Florida Cancer Specialists & Research Institute LLC's Core Ventures was completed in June 2025, expanding the network.

The community oncology market itself is estimated to hold $115 billion.

Financial capital, with $5.2 billion in Free Cash Flow for FY2025

The company's financial strength is evident in its cash generation for the fiscal year ended March 31, 2025. This capital is vital for strategic deployment, including shareholder returns and acquisitions.

Here's the quick math on how that Free Cash Flow was derived:

During the fiscal year, McKesson returned $3.5 billion to shareholders via stock repurchases of $3.1 billion and dividends of $345 million.

McKesson Ventures portfolio for strategic equity investments

McKesson Ventures acts as a strategic investment arm, targeting companies that catalyze and benefit from key changes in the healthcare ecosystem. As of late 2024, the portfolio included 36 invested companies.

The portfolio has produced significant exits and growth:

• 3 unicorns.
• 2 IPOs, including GRAIL (NASDAQ, June 2024) and Amwell.
• 14 acquisitions.

Recent co-investments in 2025 include the Series A round for Oath Surgical in October 2025, and the Series B round for Lumata Health in May 2025. The financial impact is recognized, as net gains associated with McKesson Ventures' equity investments were specifically excluded when establishing the base for the fiscal 2026 Adjusted EPS growth guidance.

Finance: draft 13-week cash view by Friday.

McKesson Corporation (MCK) - Canvas Business Model: Value Propositions

You're looking at the core value McKesson Corporation (MCK) delivers across its segments as of late 2025. This isn't just about moving boxes; it's about integrated healthcare services underpinning massive scale.

Best-in-class distribution efficiency and supply chain reliability.

The sheer scale of the U.S. Pharmaceutical segment demonstrates this reliability. For the fiscal year ended March 31, 2025, McKesson Corporation reported total revenues of $359.05 billion, up 16.2% from the prior year. The U.S. Pharmaceutical unit was the engine, bringing in $327.72 billion, marking a 17.6% increase over fiscal 2024. This growth was fueled by increased prescription volumes from major retail national account customers and specialty product distribution. The company is focused on maintaining this operational strength, updating its long-term growth target for the U.S. Pharmaceutical Segment Operating Profit to a range of 6% to 8%. That's a commitment to efficiency baked into the long-term plan.

Here's a quick look at the financial scale supporting this distribution value proposition for the full fiscal year 2025:

Improving medication access and affordability for patients.

McKesson Corporation quantifies its impact on patient affordability through its biopharma services platform. In the year leading up to the fourth quarter of fiscal 2025, this platform achieved significant patient support. The efforts resulted in helping patients save over $10 billion on brand and specialty medications. Furthermore, the technology and services helped prevent 12 million prescriptions from being abandoned due to affordability issues, and facilitated patient access to medicine more than 100 million times. The Prescription Technology Solutions Segment saw its Adjusted Segment Operating Profit increase by 22% in the third quarter of fiscal 2025, directly driven by growth in these access and affordability solutions.

Integrated solutions for community-based oncology and specialty practices.

The company is actively expanding its specialty footprint through strategic acquisitions. McKesson Corporation completed the acquisition of an 80% interest in Prism Vision Holdings LLC for $850 million last month (prior to May 2025 earnings). Additionally, an agreement was signed to acquire a 70% ownership stake in Core Ventures for $2.49 billion, which is expected to close in June 2025. This focus on integrated oncology and specialty platforms is showing up in segment results; the U.S. Pharmaceutical Segment Adjusted Segment Operating Profit increased 14% in Q3 FY2025, driven by growth in specialty product distribution to providers and health systems. The company also supports community providers with differentiated offerings, including nine oncology-specific quality measures through its Practice Insights℠ tool.

Broad portfolio of over 245,000 medical and pharmaceutical products.

While the exact total portfolio size for late 2025 isn't explicitly cited, the breadth is evident in segment performance and private label offerings. The U.S. Pharmaceutical segment revenue growth of 17.6% in FY2025 is supported by the distribution of a vast array of products. As a concrete example of portfolio depth, the McKesson Brands private label offering includes over 5,000 products. The company is also actively managing its portfolio, announcing the intent to separate its Medical-Surgical Solutions unit to focus capital deployment on higher growth areas like Oncology and Biopharma Solutions.

Customized services and technology to improve provider operating efficiency.

Technology services are a key component of the value delivered to providers, helping them manage administrative burdens. McKesson Corporation's Practice Insights℠ performance analytics tool was named a Qualified Clinical Data Registry (QCDR) by the Centers for Medicare & Medicaid Services (CMS) for the ninth consecutive year in 2025. This designation allows providers using iKnowMed℠ to efficiently submit data directly for Merit-based Incentive Payment System (MIPS) quality measures, eliminating the need for a separate registry vendor. The Prescription Technology Solutions Segment saw revenues increase 14% in the third quarter of fiscal 2025, reflecting increased prescription volumes in its third-party logistics and technology services businesses. Point-of-care technologies are also key, enabling real-time data sharing for improved decision-making.

The Prescription Technology Solutions Segment delivered strong financial results in Q3 FY2025.

• Revenues: $1.4 billion, an increase of 14%
• Adjusted Segment Operating Profit: $235 million, an increase of 22%

Finance: draft 13-week cash view by Friday.

McKesson Corporation (MCK) - Canvas Business Model: Customer Relationships

You're looking at how McKesson Corporation (MCK) locks in its vast customer base, which is really about embedding itself so deeply into their operations that leaving becomes prohibitively complex. This isn't just about selling pills; it's about providing the essential infrastructure for healthcare delivery, especially through long-term, high-volume contracts.

Long-term, high-volume contracts with major national accounts.

The core relationship here is with major retail national account customers within the U.S. Pharmaceutical segment. This segment is the backbone, generating $327.72 Billion in revenue for fiscal year 2025, which accounted for 91.28% of the company's total revenue of $359.1 billion. Growth in this area, up 18% year-over-year for the segment in FY2025, was explicitly driven by higher volumes from these retail national account customers. Furthermore, the company is actively growing this base, evidenced by the onboarding of a new strategic partner within the U.S. Pharmaceutical segment during FY2025.

Here's a quick look at the scale of the key customer-facing segments in fiscal year 2025:

Dedicated account management and tailored service models.

For specialized customer groups, like oncology practices, McKesson Corporation deploys tailored models that go beyond simple distribution. This is seen in their focus on oncology and specialty platforms, where they are deploying capital to deepen relationships. For instance, the company completed the acquisition of an 80% interest in Prism Vision Holdings LLC for $850 million and agreed to buy a 70% stake in Core Ventures for $2.49 billion. These moves are strategic engagements designed to provide differentiated solutions directly to providers, ensuring retention by offering services that address complex care pathways.

Providing 24/7 technical support for practice management software.

The Prescription Technology Solutions segment is where this relationship is most evident in a software context. This segment generated $5.22 Billion in revenue in FY2025, with an Adjusted Segment Operating Profit of $235 million in the third quarter of that year. A key component is Practice Insights℠, an analytics tool powered by Ontada®, McKesson's technology business. This tool, which has been named a Qualified Clinical Data Registry (QCDR) by CMS for the ninth consecutive year, supports nine oncology-specific QCDR measures. This level of integration, allowing providers using iKnowMed℠ EHR to submit quality data directly to CMS, creates a sticky relationship by minimizing administrative burden for the customer.

Strategic engagement to ensure customer retention and growth.

The company signals its commitment to long-term customer value through its financial outlook. McKesson Corporation is reaffirming and updating its long-term Adjusted Earnings per Diluted Share growth target to 13% to 16%. This aggressive target is predicated on sustained operational momentum and disciplined execution across its differentiated assets, which directly translates to the value it promises to deliver to its customer base over the long haul. If onboarding takes 14+ days, churn risk rises, so speed in integrating new strategic partners is key.

Consulting and outsourcing services for pharmacies and providers.

The expansion into provider services acts as a significant relationship anchor. Beyond distribution, McKesson Corporation is actively building out its biopharma services platforms. The acquisition of Core Ventures, which provides administrative and advisory services to oncology practices at nearly 100 locations in Florida, is a prime example of an outsourcing/consulting play. Also, the Practice Insights tool helps providers manage quality reporting, which is essentially a consulting service delivered via technology, supporting measures like patient-reported outcomes for addressing health-related social needs.

Finance: draft 13-week cash view by Friday.

McKesson Corporation (MCK) - Canvas Business Model: Channels

You're looking at how McKesson Corporation gets its value proposition-the delivery of pharmaceuticals and healthcare products-into the hands of its customers. This is all about the physical and digital pathways they use, which are massive in scale.

Network of U.S. and Canadian pharmaceutical distribution centers.

McKesson Corporation supports a third of all medicine distribution across the U.S.. This physical backbone is extensive, designed for high-volume, regulated delivery.

• Network includes over 50 distribution centers across the U.S..
• The network moves a full range of pharmaceutical products-branded, generic, and specialty-to care settings nationwide.
• The International segment, which includes Canadian operations, generated $14.7 billion in revenue for fiscal year 2025.

Direct sales force to hospitals and institutional providers.

The results of this channel are clear in the segment performance. Growth in the distribution of specialty products to providers and health systems was a key driver for the U.S. Pharmaceutical segment's Adjusted Segment Operating Profit increase of 12% for the full fiscal year 2025. The U.S. Pharmaceutical segment, which includes sales to institutional providers, accounted for nearly 92% of the company's full-year revenue.

Prescription Technology Solutions (RxTS) digital platforms.

The Prescription Technology Solutions segment acts as a digital channel, connecting various stakeholders to improve medication access and affordability. For the third quarter of fiscal 2025, this segment generated $1.4 billion in revenue. The long-term Adjusted Segment Operating Profit growth target for RxTS is set between 10% to 13% annually.

This platform's reach is substantial, being integrated with:

• Most Electronic Health Records (EHRs).
• 50,000+ pharmacies.
• 950,000 providers.
• Supporting 650+ biopharma brands.

Medical-Surgical supply distribution to alternate care sites.

This channel involves distributing medical-surgical supplies and logistics services to places like clinics, surgical centres, and home health agencies. McKesson Corporation announced plans to separate this segment in May 2025. For fiscal year 2025, this Medical-Surgical Solutions business generated approximately $11.4 billion in revenue, representing about 3.2% of total company revenue. The business delivers over 245,000 branded medical-surgical products.

Specialty distribution channels for high-cost, complex drugs.

This is a high-growth focus area, often channeled through the company's oncology platform and specialty distribution network. Growth in the distribution of specialty products, including higher volumes in oncology, was a primary driver for the overall consolidated revenue increase of 16.2% in fiscal year 2025, reaching $359.05 billion. The newly defined Oncology & Multispecialty unit, which includes specialty drug distribution, has a long-term Adjusted Segment Operating Profit growth target of 13% to 16% annually, the fastest among the company's divisions.

Here's a quick math breakdown of the major revenue channels for the fiscal year ended March 31, 2025:

McKesson Corporation (MCK) - Canvas Business Model: Customer Segments

You're looking at McKesson Corporation's customer base as of late 2025, grounded in the financial structure reported for the fiscal year ended March 31, 2025, and the strategic segment realignment announced in September 2025.

The core of McKesson Corporation's business, the U.S. Pharmaceutical Segment, generated revenues of $327.72 B in fiscal year 2025, representing nearly 92% of the company's total consolidated revenue of $359.05 B for that year. This segment's growth was explicitly driven by volumes from key customer groups.

The customer base is segmented across several key areas, which are being formally grouped into new reportable segments effective in the second quarter of fiscal year 2026:

• Retail and community pharmacies in the U.S. and Canada. This group is a primary focus of the new North American Pharmaceutical segment. Growth in the U.S. Pharmaceutical Segment was driven by increased prescription volumes from retail national account customers.
• Hospitals and health systems (institutional healthcare providers). These providers are also served under the North American Pharmaceutical segment umbrella. Growth in adjusted segment operating profit was driven by distribution of specialty products to providers and health systems.
• Biopharma companies and drug manufacturers. These partners are connected through the Prescription Technology Solutions segment, which offers services across the product lifecycle.
• Community-based oncology and multispecialty physician practices. This group forms the basis of the new Oncology and Multispecialty segment. Growth was noted in the oncology platform and specialty product distribution.
• Government and extended care markets. The former Medical-Surgical Solutions segment served customers like nursing homes and home health care agencies, and the company also has agreements with government entities and agencies.

Customer concentration is a factor you need to watch. Sales to McKesson Corporation's single largest customer, CVS Health Corporation, accounted for approximately 24% of total consolidated revenues in fiscal 2025.

Here's a look at the revenue contribution from the segments that most directly map to these customer groups for the fiscal year ended March 31, 2025:

The growth drivers within the U.S. Pharmaceutical Segment for fiscal 2025 included:

• Increased prescription volumes from retail national account customers.
• Growth in the distribution of specialty products.
• Higher volumes in oncology.

For the Prescription Technology Solutions segment, revenue increased by 9%, driven by higher volumes in third-party logistics and technology services.

The International Segment, which includes Canadian operations, saw revenues of $14.72 B, an increase of 4%, largely due to higher pharmaceutical distribution volumes in Canada.

Finance: draft 13-week cash view by Friday.

McKesson Corporation (MCK) - Canvas Business Model: Cost Structure

The cost structure for McKesson Corporation is heavily weighted toward the direct costs associated with moving massive volumes of pharmaceuticals and medical supplies, complemented by significant ongoing investments in its technology backbone.

High cost of goods sold (COGS) due to the distribution model. The sheer scale of distribution means COGS is the dominant cost component. For the third quarter of fiscal 2025, consolidated revenues reached $95.3 billion. With a reported Gross Profit of $3.3 billion for that same quarter, the implied Cost of Goods Sold was approximately $92.0 billion. This high ratio of COGS to revenue is inherent to the wholesale distribution business.

Significant operating expenses, including $1.9 billion in Q3 2025. Operating expenses are substantial, reflecting the necessary infrastructure to support this distribution. In the third quarter of fiscal 2025, operating expenses were reported at $1.9 billion. This figure was driven by higher expenses supporting growth within the U.S. pharmaceutical segment. The company noted that the operating expense to gross profit ratio improved by over 250 basis points compared to the prior year, showing efficiency gains despite the absolute dollar increase.

For a clearer picture of the scale, here are some key cost-related financial figures from the fiscal year ended March 31, 2025:

Logistics and distribution network maintenance costs. Maintaining a reliable, expansive network is a non-negotiable cost. McKesson Corporation announced in October 2025 the expansion of its healthcare logistics network, deploying new automated distribution centers. These facilities integrate AI and robotics for real-time inventory tracking and predictive demand planning, which represents a significant capital and operational outlay to ensure supply reliability for hospitals and clinics across the U.S.

Technology investment spend to modernize the enterprise. The company deploys a substantial $1.5 billion annual Research and Development (R&D) budget to develop advanced solutions. This investment is a cornerstone of the growth strategy, focused on increasing operational efficiency and supporting value-based care models. Key technology costs support platforms like HealthOS, which integrates real-time data from over 80% of U.S. pharmacies.

Interest expense, anticipated at $255 million to $265 million for FY2025. The cost of financing operations and acquisitions factors into the structure. The anticipated interest expense for fiscal year 2025 is projected to fall within the range of $255 million to $265 million. This figure is tracked separately as Adjusted Interest Expense in non-GAAP reporting, which excludes transaction-related adjustments like those from cross-currency swaps.

Key components driving the cost base include:

• High cost of product acquisition (COGS).
• Operating expenses supporting U.S. Pharmaceutical segment growth.
• Investments to support future growth in technology services.
• Capital deployment for logistics automation and AI integration.
• Corporate expenses, which were $134 million in Q3 2025.

Finance: draft the Q1 2026 cash flow projection incorporating the FY2025 interest expense run-rate by next Tuesday.

McKesson Corporation (MCK) - Canvas Business Model: Revenue Streams

You're looking at the core engine of McKesson Corporation's revenue generation as of late 2025. Honestly, it's a story dominated by volume and scale in the U.S. pharmaceutical space, but with clear, high-growth pockets you need to watch.

The overall picture for fiscal year 2025 shows consolidated revenues hitting approximately $359.05 B, a significant jump of 16.22% from the prior year, showing the sheer scale of their distribution network.

Here is the breakdown of the primary revenue streams based on the fiscal year 2025 results:

The U.S. Pharmaceutical distribution segment remains the backbone, accounting for over 91% of the total. That $327.72 B figure represents a substantial 17.6% increase year-over-year, driven by increased prescription volumes from retail national customers.

Now, let's look closer at the growth drivers within these streams, especially where McKesson Corporation is focusing capital deployment. You see the clear emphasis on specialty care.

• Specialty drug distribution and related services: This is a high-growth area, with revenue growth in the U.S. Pharmaceutical segment specifically driven by higher volumes in specialty products, including oncology treatments.
• Prescription Technology Solutions (RxTS) fees: This segment generated $5.22 B in FY2025, showing a healthy growth rate of about 9.37% from the previous year.
• International distribution: Revenue reached $14.72 B, which was up about 4.18% from FY2024, despite currency headwinds.

The Medical-Surgical Solutions segment contributed $11.39 B to the top line. To be defintely clear, McKesson Corporation has signaled plans to spin off this Medical-Surgical Solutions unit, which accounted for about 3.2% of revenue in fiscal 2025, to concentrate capital on the core pharmaceutical and biopharma solutions businesses.

The revenue from Prescription Technology Solutions, at $5.22 B, is generated through fees associated with their technology offerings supporting pharmacies and providers. This stream is smaller but growing at a faster clip than the Medical-Surgical segment, which saw only a modest 0.65% revenue increase.

Finance: draft 13-week cash view by Friday.