Operating expense ratio decreased by 41 basis points to 2.07% amid 12% revenue growth.
Completed sale of Norway operations with a $480 million net gain and announced Med-Surg separation.
Board approved an additional $5.0 billion share repurchase authorization, totaling $7.7 billion.
Carries a $5.7 billion accrued liability for opioid-related litigation settlements.
The Fiscal 2026 10-K reveals a company at a strategic crossroads, attempting to trade low-margin wholesale volume for high-margin specialty services. While the financial results show a massive surge in diluted EPS to $38.38, the quality of these earnings is mixed, relying on significant divestiture gains and the unwind of legacy bankruptcy provisions. The overall impact of the filing is a blueprint for a leaner, more focused organization, but one that remains tethered to massive legal liabilities and high customer concentration. For investors, the primary tension lies between the execution of the Medical-Surgical spin-off and the management of the opioid settlement payments. If McKesson can successfully carve out its lower-growth assets and maintain its specialty care momentum, it may justify its transition to a 'healthcare compounder.' However, the sheer scale of the litigation liabilities and the volatility of the core distribution margins suggest that the path to sustained growth is fraught with systemic risk.