McKesson Corporation (0JZU.L) Q3 2025 Earnings Report

McKesson delivered robust top-line growth in QQ3 2025 with Revenue of USD 95.294 billion, up 17.8% year-over-year (YoY) and 1.75% quarter-over-quarter (QoQ). Management’s results reflect sustained demand across its diversified platform (US Pharmaceutical, International Medical-Surgical Solutions, and RxTS), underpinned by scale advantages and ongoing investments in technology-enabled solutions. However, the quarter is characterized by meaningful cash flow headwinds and a stressed balance sheet: operating cash flow was negative (USD -2.383 billion), free cash flow was negative (USD -2.579 billion), and working capital swings were material (change in working capital of USD -4.185 billion with accounts receivable down USD 5.65 billion and other working capital effects of USD -3.796 billion). Net income reached USD 0.879 billion with an EPS of USD 6.98 (diluted USD 6.94), but the company carries a negative reported stockholders’ equity (USD -3.084 billion) and a leveraged liquidity profile (current ratio 0.884, quick ratio 0.476, cash ratio 0.0219). While EBITDA stood at USD 1.446 billion with an EBITDA margin of about 1.52%, the cash flow dynamics and balance sheet stress mark an important overhang for near-term value realization. The absence of explicit forward-looking guidance in the data requires investors to focus on execution of cash conversion improvements, working capital discipline, and debt maturity management as key near-term catalysts.