Healthcare · Profile from Healthcare Research Companion
McKesson Corporation
The oldest and largest US drug wholesaler. It began as a Manhattan import shop in 1833 and now moves roughly a third of the medicines dispensed in North America, with about $400bn of revenue on operating margins near 1.5%. Its history includes two of the most famous accounting frauds in American business (McKesson & Robbins in 1938, HBOC in 1999), a decade-long and mostly failed attempt to become a hospital software company, a European expansion it later unwound, and a multibillion-dollar opioid settlement. Since about 2020 it has had a narrower strategy: distribution as a cash engine, with oncology practice services and prescription-access software as the growth businesses.
At a glance
- Founded
- 1833, New York City, as Olcott & McKesson, a drug import and wholesale house on Maiden Lane
- Founders
- John Olcott and Charles McKesson; Daniel Robbins joined later (firm renamed McKesson & Robbins in the 1850s)
- Headquarters
- Irving (Las Colinas), Texas, since 2019; San Francisco for most of the twentieth century
- Ownership / structure
- Public company, NYSE: MCK. Merged with Foremost Dairies in 1967 (Foremost-McKesson), renamed McKesson in 1984; McKesson HBOC 1999–2001
- Leadership (2026)
- Brian Tyler, chair and CEO (CEO since April 2019); Kenny Cheung, CFO from 29 May 2026 (succeeding Britt Vitalone, CFO since 2018)
- Segments
- Reported from FY2026 as North American Pharmaceutical, Oncology & Multispecialty, Prescription Technology Solutions (RxTS) and Medical-Surgical Solutions (being separated as Wellverse)
- Payer and patient
- Customers are pharmacies (chains, independents, mail and specialty), hospitals, health systems, physician practices, manufacturers and, indirectly, PBMs and plans; patients rarely see the name
- Scale
- FY2025 (year to March 2025) revenue ~$359bn; FY2026 revenue ~$403bn (+12%), adjusted operating profit ~$6.5bn, adjusted EPS $39.11, free cash flow ~$5.4bn (reported); GAAP operating margin ~1.5%; one of the top ten US companies by revenue
- Capital / market cap
- Self-funded through operating cash flow and investment-grade debt; heavy share buybacks since the 2010s; market cap rose several-fold from 2020 to 2026 as earnings grew (non-affiliate equity value ~$95bn at 30 September 2025, per the FY2026 10-K)
- Signature moves (incl. failures)
- Founding (1833); Coster/Musica fraud (1938); HBOC merger and accounting fraud (1999); US Oncology and the oncology platform (2010–2025); Celesio and the European bet, later unwound (2014–2022); CoverMyMeds (2017); Change Healthcare JV and split-off (2017–2020); opioid enforcement and national settlement (2008–2022); Medical-Surgical separation (2025–26)
9 strategic moves analysed
Each one gets a full strategy file in the companion: context, the decision, the financing, what happened, and the lesson.
1833
Founding Olcott and McKesson
Founding
1938
Coster Musica Fraud
Restructuring (fraud exposure, trusteeship and reorganisation)
1999
HBOC Merger Fraud
Acquisition (merger), followed by accounting restatement and fraud
2010
US Oncology and Oncology Platform
Acquisition (with follow-on acquisitions, 2010–2025)
2014
Celesio Europe Bet and Exit
Acquisition, later divestiture
2017
Change Healthcare JV and Split Off
Joint venture, followed by IPO and split-off (spin-off)
2017
CoverMyMeds Acquisition
Acquisition
2022
National Opioid Settlement
Regulatory settlement (with earlier DEA/DOJ settlements in 2008 and 2017)
2025
Medical Surgical Separation
Spin-off / divestiture (separation into an independent company, with a private-equity minority investment)