How does McKesson (MCK) make money?

McKesson (MCK) generates revenue primarily from North American Pharmaceutical Segment, which accounted for 67.5% of total revenue in TTM through Q1 2026. The company reported $403B in revenue and converted 1.2% of it into net profit, equivalent to roughly $4.76B in net income — what's left after the cost of revenue, operating expenses, interest, and income taxes.

What is the gross profit margin of McKesson (MCK)?

McKesson (MCK) reported a gross profit margin of 3.6% in TTM through Q1 2026, equivalent to $14.6B in gross profit on $403B in revenue. Gross margin measures how much of each dollar of revenue remains after the direct cost of producing or delivering the product — a higher figure typically signals pricing power, scale, or a less capital-intensive business model.

What is the operating profit margin of McKesson (MCK)?

McKesson (MCK) reported an operating profit margin of 1.6% in TTM through Q1 2026, equivalent to $6.37B in operating income. Operating margin captures profitability after research & development, sales & marketing, and general & administrative expenses — but before interest, taxes, and one-off items — and is the cleanest single read on the underlying business's efficiency.

What is the net profit margin of McKesson (MCK)?

McKesson (MCK) reported a net profit margin of 1.2% in TTM through Q1 2026, equivalent to $4.76B in net income. Net margin is the bottom-line share of revenue that survives every expense — operating costs, interest, and income taxes — and is the figure that flows directly into earnings per share.

Is McKesson (MCK) profitable?

Yes. McKesson (MCK) reported $4.76B in net income for TTM through Q1 2026, with a net profit margin of 1.2%. The company earned more from its operations than it paid out in costs, interest, and income taxes, leaving positive earnings on the bottom line.

How much does McKesson (MCK) spend on capital expenditures?

McKesson (MCK) spent $219M on capital expenditures (CapEx) during TTM through Q1 2026, roughly 0.1% of total revenue. CapEx represents long-lived investment in property, equipment, data centres, and other physical infrastructure, and is subtracted from operating cash flow to arrive at free cash flow.

How much free cash flow does McKesson (MCK) generate?

McKesson (MCK) generated $5.94B in free cash flow during TTM through Q1 2026, a free-cash-flow margin of 1.5%. Free cash flow is the cash left after capital expenditures and represents the discretionary pool the company can use to pay dividends, repurchase shares, repay debt, or fund acquisitions without raising external capital.

What is the effective tax rate of McKesson (MCK)?

McKesson (MCK) had an effective tax rate of 17.8% in TTM through Q1 2026. The effective rate is the actual share of pre-tax income paid as income taxes and can differ materially from the statutory rate due to foreign earnings mix, tax credits (such as R&D), share-based compensation deductions, and one-off discrete items.

What are the main business segments of McKesson (MCK)?

McKesson (MCK) reports revenue across 8 reportable product segments, led by North American Pharmaceutical Segment at 67.5% of total revenue in TTM through Q1 2026. See the revenue-by-segment table on this page for the full breakdown and how each segment feeds into the income-statement waterfall above.

How McKesson Makes Money: 2026 Visual Revenue Map

McKesson (MCK) Income Statement Flow — TTM through Q1 2026

Calculated from the four most recent reported quarters, ending March 31, 2026 (reported May 8, 2026).

McKesson discloses geographic revenue only in annual filings. to view the full breakdown.

McKesson (MCK) Revenue by Product Segment — TTM through Q1 2026

Aggregated from the four quarterly disclosures behind this TTM. Minor differences vs the company's annual filing can occur if reported segments changed mid-year.

Revenue contribution by product segment for McKesson (MCK), TTM through Q1 2026.
Segment	Revenue (USD)	% of total
North American Pharmaceutical Segment	$272B	67.5%
U.S. Pharmaceutical Segment	$72.8B	18%
Oncology And Multispecialty Segment	$39.2B	9.7%
Medical-Surgical Solutions Segment	$9.31B	2.3%
Prescription Technology Solutions Segment	$4.7B	1.2%
International Segment	$3.02B	0.7%
Prescription Technology Solutions	$1.16B	0.3%
Segment Reporting, Reconciling Item, Excluding Corporate Nonsegment	$844M	0.2%
Total	$403B	100%

North American Pharmaceutical Segment$272B
U.S. Pharmaceutical Segment$72.8B
Oncology And Multispecialty Segment$39.2B
Medical-Surgical Solutions Segment$9.31B
Prescription Technology Solutions Segment$4.7B
International Segment$3.02B
Prescription Technology Solutions$1.16B
Segment Reporting, Reconciling Item, Excluding Corporate Nonsegment$844M
Total$403B

Revenue Breakdown — TTM through Q1 2026

In TTM through Q1 2026, McKesson (MCK) reports revenue across 8 reportable product segments; the largest segment was North American Pharmaceutical Segment at 67.5%, followed by U.S. Pharmaceutical Segment (18%) and Oncology And Multispecialty Segment (9.7%).

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