Cardinal Health vs McKesson: Revenue, Profit and Business Model
Cardinal Health reported $254.2B of revenue in FY2026 and $1.7B of net income. McKesson reported $403.4B of revenue in FY2026 and — of net income.
Latest financial snapshot
Cardinal Health
- Latest revenue
- $254.2B (FY2026)
- Net income
- $1.7B
- Net margin
- 0.7%
- Revenue growth
- +7.7% a year, FY2017–FY2026
McKesson
- Latest revenue
- $403.4B (FY2026)
- Net income
- —
- Net margin
- 0.0%
- Revenue growth
- +14.3% a year, FY2024–FY2026
Financial summary
Cardinal Health
Cardinal Health combines very large revenue with thin margins. Fiscal 2026 revenue was $254.2 billion, up 14% from $222.6 billion in fiscal 2025, driven by brand and specialty drug volume from existing customers. GAAP operating earnings were $2.6 billion, GAAP diluted EPS was $7.23, and net earnings attributable to Cardinal Health were about $1.7 billion. Non-GAAP diluted EPS rose 37% to $11.26 ($10.95 excluding the IEEPA tariff refund). Operating cash flow was $5.2 billion and adjusted free cash flow was $5.0 billion. The company repurchased $1.4 billion of stock in fiscal 2026 and the board added $5.0 billion to the buyback authorization in August 2026. Fourth-quarter fiscal 2026 revenue was $63.7 billion, up 6%.
McKesson
McKesson reported fiscal 2026 revenue of $403.4 billion, up 12%, operating cash flow of $6.2 billion, and free cash flow of $5.4 billion. North American Pharmaceutical produced $336.7 billion of revenue; Oncology & Multispecialty produced $48.4 billion; Prescription Technology Solutions produced $5.8 billion; and Medical-Surgical Solutions produced $11.5 billion. Revenue should be read alongside segment profit and cash flow because distribution and retail represented about 98% of consolidated revenue but operate on thin margins.
Revenue and profit by year
Cardinal Health
| Year | Revenue | Net income | Margin | Growth | Source |
|---|---|---|---|---|---|
| FY2026 | $254.2B | $1.7B | 0.7% | +14.2% | Source |
| FY2025 | $222.6B | $1.6B | 0.7% | -1.9% | Source |
| FY2024 | $226.8B | $852M | 0.4% | +10.7% | Source |
| FY2023 | $205B | $330M | 0.2% | +13.0% | Source |
| FY2022 | $181.3B | -$938M | -0.5% | +11.6% | Source |
| FY2021 | $162.5B | $611M | 0.4% | +6.2% | Source |
| FY2020 | $152.9B | -$3.7B | -2.4% | +5.1% | Source |
| FY2019 | $145.5B | $1.4B | 0.9% | +6.4% | Source |
| FY2018 | $136.8B | $256M | 0.2% | +5.3% | Source |
| FY2017 | $130B | $1.3B | 1.0% | — | Source |
McKesson
| Year | Revenue | Net income | Margin | Growth | Source |
|---|---|---|---|---|---|
| FY2026 | $403.4B | — | 0.0% | +12.3% | Source |
| FY2025 | $359.1B | — | 0.0% | +16.2% | Source |
| FY2024 | $309B | — | 0.0% | — | Source |
Where the revenue comes from
Cardinal Health
- Pharmaceutical Distribution - Branded, Generic, and Specialty~92%
Product sales and fees from distributing branded, generic, and specialty drugs, plus services from specialty practice platforms. Fiscal 2026 segment revenue was $234.8 billion (up 15%) and segment profit was $2.8 billion (up 23%), driven by brand and specialty volume and generics program performance.
- Medical and Surgical Products Manufacturing and Distribution~5%
Sales of Cardinal Health-brand and national-brand medical, surgical, and laboratory products. Fiscal 2026 GMPD revenue was $12.7 billion and segment profit was $258 million, including a one-time $100 million IEEPA tariff refund benefit. Fiscal 2027 guidance calls for $200-$220 million of segment profit.
- Nuclear Pharmacy, at-Home Solutions, and Logistics~3%
Nuclear and Precision Health Solutions (radiopharmaceuticals), at-Home Solutions (direct-to-patient supplies), and OptiFreight Logistics. Together they generated $6.8 billion of fiscal 2026 revenue (up 26%) and $707 million of segment profit (up 37%), the highest margins in the company.
McKesson
- North American Pharmaceutical
Large majority
U.S. and Canadian drug wholesaling to retail, institutional and independent pharmacy customers, including Health Mart.
- Oncology & Multispecialty
Not separately estimated
Specialty distribution plus practice-management and data services for oncology, retina and other specialty practices.
- Prescription Technology Solutions
Small share of revenue
CoverMyMeds, Rx Savings Solutions and biopharma access and affordability programs; a higher-margin contributor to operating profit.
- Medical-Surgical Solutions
Single-digit share
Medical supplies and logistics for physician offices, long-term care and alternate care sites; being separated as Wellverse.
Business model and strategy
Cardinal Health
How it makes money
The business model is large, high-volume logistics divided into two segments: Pharmaceutical and Medical. In the Pharma segment, they buy billions of dollars of drugs from manufacturers (like Pfizer) and distribute them daily to tens of thousands of pharmacies and hospitals, taking a tiny markup.
Growth strategy
Cardinal Health's growth plan rests on three levers. First, specialty pharmaceuticals and physician practice platforms: it bought a 71% stake in GI Alliance for about $2.8 billion (announced November 2024) and funded The Specialty Alliance's roughly $1.9 billion acquisition of urology MSO Solaris Health (completed November 2025).
Competitive advantage
Cardinal Health's absolute competitive advantage is its large, unreplicable physical scale and deep regulatory entrenchment. Moving highly regulated, temperature-sensitive narcotics and biologics across the country overnight requires a large network of specialized distribution centers and specialized security protocols that take decades and billions of dollars to build.
McKesson
How it makes money
McKesson makes money primarily by purchasing and distributing pharmaceuticals and medical products to pharmacies, hospitals, health systems, and other providers. Distribution is a high-volume, thin-margin business, so purchasing terms, logistics efficiency, order accuracy, customer contracts, and working-capital management drive results.
Growth strategy
McKesson is concentrating capital on oncology, multispecialty care, and biopharma services, where provider relationships and specialty capabilities can grow faster than traditional wholesale distribution. It is also expanding prescription access and affordability services, completing its exit from Europe, and pursuing a separation of Medical-Surgical Solutions.
Competitive advantage
McKesson's advantage is the combination of distribution scale, regulated logistics, supplier and customer relationships, specialty capabilities, and nationwide infrastructure. Those assets are expensive and difficult to replicate, but large customers retain negotiating power and the core distribution model remains sensitive to small changes in pricing, product mix, and costs.
Questions about Cardinal Health vs McKesson
Which company has higher revenue — Cardinal Health, Inc. or McKesson Corporation?
Cardinal Health, Inc. reported $254.2B (FY2026), while McKesson Corporation reported $403.4B (FY2026). By last reported revenue, McKesson Corporation is the larger business, with Cardinal Health, Inc. reporting a smaller revenue base.
What is the market cap of Cardinal Health, Inc. vs McKesson Corporation?
Cardinal Health, Inc. has a market capitalisation of $56.0B. A public market cap figure for McKesson Corporation was not available (it may be privately held).
Which is more financially efficient — Cardinal Health, Inc. or McKesson Corporation?
Cardinal Health, Inc. generates $3.98M / employee in revenue per employee, while McKesson Corporation generates $9.38M / employee. McKesson Corporation shows higher revenue efficiency per headcount, though this reflects business model differences — capital-light software companies routinely outperform labour-intensive manufacturers on this metric.
How do Cardinal Health, Inc. and McKesson Corporation make money?
Cardinal Health, Inc. and McKesson Corporation generate revenue in fundamentally different ways. Cardinal Health, Inc.: The business model is large, high-volume logistics divided into two segments: Pharmaceutical and Medical. McKesson Corporation: McKesson makes money primarily by purchasing and distributing pharmaceuticals and medical products to pharmacies, hospitals, health systems, and other providers.
Is Cardinal Health, Inc. bigger than McKesson Corporation?
By last reported revenue, McKesson Corporation ($403.4B (FY2026)) is the larger company compared to Cardinal Health, Inc. ($254.2B (FY2026)). Revenue scale is one dimension of size — market capitalisation, employee count, and geographic reach are also relevant depending on the context.
Figures come from each company's filings and the sources linked beside them. Amounts reported in another currency are shown in US dollars at an approximate rate and marked with ~. Back to the Cardinal Health vs McKesson overview