McKesson used its fiscal Q3 earnings call to underscore how investments in data, infrastructure, automation and artificial intelligence (AI) are contributing to sales and operating efficiency across its pharmaceutical distribution and specialty services businesses.

For the quarter ending Dec. 31, McKesson reported sales of $106.2 billion, up from $95.3 billion a year earlier, an 11% increase. Net income attributable to McKesson rose to $1.19 billion from $879 million, a 35% gain.

For the first nine months of the fiscal year, sales reached $307.1 billion, up 15% from $268.2 billion a year earlier. Year-to-date net income climbed 51% to $3.08 billion from $2.04 billion.

In its earnings release, CEO Brian Tyler pointed out broad momentum across the company.

“McKesson reported strong third quarter operational results with broad-based revenue growth of 18% and adjusted operating profit growth of 16%,” Tyler said. “Our performance reflects the strength and momentum across the enterprise.”

How McKesson grew sales in Q3

Tyler also emphasized the role of specialty services in the company’s strategy.

“We remain committed to our enterprise growth strategy, including our growth pillars within oncology and biopharma services. This strategy has enabled our strong results and is a foundation for balanced growth and value creation.”

On the earnings call, chief financial officer Britt Vitalone connected those results to enterprise modernization and the use of AI and data tools to improve productivity and customer experience while containing costs.

“We are modernizing the enterprise, and we’re investing in data and analytics, including the acceleration of several investments in cloud, networking, and infrastructure,” Vitalone said. “We’re also accelerating the use of AI to unlock the potential to deliver customer and foundational enhancements. … We’re using AI to improve the customer experience and improve productivity, including supply chain disruption, predictions, forecast accuracy algorithms, and fraud detection.”

Vitalone made those remarks while explaining how operating expenses increased only 2% year over year and how the operating expense-to-gross-profit ratio improved by more than 250 basis points.

Digital capabilities are most visible in McKesson’s Prescription Technology Solutions segment, where revenue increased 14% to $1.4 billion and operating profit rose 22% to $235 million. The business provides prior authorization, access and affordability and third-party logistics tools used by providers and pharmacies.

McKesson acquisition and expenditures

A key development in the quarter was McKesson’s agreement to acquire an 80% interest in PRISM Vision Holding for about $850 million. PRISM’s affiliated practices include 180 providers, 91 office locations and seven ambulatory surgery centers.

“With this transaction, we intend to develop a leading platform for retinal care, delivering differentiated solutions and value across providers, biopharma partners and patients,” Tyler said.

Executives said the approach mirrors how McKesson built its oncology ecosystem.

Through the U.S. Oncology Network, McKesson supports more than 2,750 providers across 640 sites in 31 states. That network is connected to the Sarah Cannon Research Institute, where patient accrual in clinical trials increased 25% last year and researchers participated in the development of 33 of 47 therapies approved by the U.S. Food and Drug Administration, according to the company.

During the quarter, McKesson invested $196 million in capital expenditures, much of it tied to distribution center capacity and technology and analytics upgrades. The company also completed the sale of its Canadian retail businesses and reiterated plans to exit remaining European operations.

Executives said those steps allow McKesson to focus resources on pharmaceutical distribution, specialty platforms, and technology-enabled services.

Across the call, leaders framed AI and digital investments not as experimental efforts but as tools already improving forecasting, supply chain visibility, fraud detection and productivity inside the company’s core operations.

Sign up

Sign up for a complimentary subscription to Digital Commerce 360 B2B News. It covers technology and business trends in the growing B2B ecommerce industry. Contact Mark Brohan, senior vice president of B2B and Market Research, at mark@digitalcommerce360.com. Follow him on Twitter @markbrohan. Follow us on LinkedIn, X (formerly Twitter), Facebook and YouTube.