McKesson Medical-Surgical Solutions Revenue Rises 5% to $3.1 Billion
Key Facts
McKesson’s Medical-Surgical Solutions segment revenue rose 5% year over year to $3.1 billion in the quarter ended Sept. 30, 2026, according to results for the second quarter of its 2027 fiscal year. The company attributed the increase to growth in its extended care and alternate site channels. The segment reported operating profit of $164 million for the quarter. Adjusted operating profit, however, fell 10%, reflecting a different trajectory for profitability than for revenue. The performance comes as McKesson continues to prepare for the segment’s separation, after completing Apollo’s investment in it during June.
The segment’s revenue for the six months ended Sept. 30 increased by $268 million, or 5%, compared with the same period a year earlier. Sales to extended care customers rose by $170 million during the period, while sales to alternate site customers increased by $84 million. The figures show the two channels’ contributions to revenue growth since the start of the fiscal period. Operating profit in the quarter, however, was affected by factors related to the planned separation and the alternate site business. McKesson said the decline in segment profit was primarily linked to $42 million in separation-related costs, along with a lower contribution from the alternate site business, partly offset by a higher contribution from extended care.
For the six months ended Sept. 30, separation-related costs associated with the segment totaled $87 million and were a key reason for the decline in its operating profit compared with the same period a year earlier, according to McKesson’s report. The proposed separation segment operates within the U.S. health care supply chain, distributing medical and surgical products, laboratory equipment and pharmaceuticals, and providing logistics services to care providers in non-acute settings. That gives the business a scope beyond medical supply distribution alone. In June, the company said Apollo funds had invested $1.25 billion in the segment’s convertible preferred stock. In exchange for the investment, Apollo received an approximately 13% minority stake, while the segment’s total value was estimated at about $13 billion.
McKesson retained operational control and a majority stake in the segment after Apollo’s investment, and said it would continue to consolidate its results in its financial reporting. The investment therefore did not transfer management of the business to Apollo, but gave the fund a minority stake through convertible shares. The company had announced its intention to separate the business, but had not finalized the transaction’s structure or completion date in its annual filing. The filing said the separation could take place through a distribution, a share exchange or a combination of the two. It also made completion subject to requirements including a tax opinion, registration with the U.S. Securities and Exchange Commission, government approvals and board approval.
McKesson outlined in its investor presentation principles it said would guide the creation of the standalone company, including value creation, capital allocation, strategic alignment, transparency, discipline and focus. The company did not specify a final form or firm date for the separation in its annual filing, as execution remains subject to the stated approvals and procedures. In a step concerning the business’s future identity, McKesson disclosed on Aug. 5 that Wellverse would be the segment’s future name. The company said it expects to begin using the name and brand in February 2027. That date applies to the name and brand, while the annual filing did not specify a date for completing the segment’s separation.