McKesson is one of the largest pharmaceutical distributors in North America, handling roughly one-third of all pharmaceuticals distributed across the continent. McKesson buys pharmaceuticals from manufacturers and distributes them to retail pharmacies, independent pharmacies, hospitals, health systems, and other care providers through 27 U.S. distribution centers. The core distribution business generates the vast majority of revenue but at thin margins — a structural feature of pharmaceutical distribution. McKesson earns on the spread between manufacturer and customer pricing, benefits from branded drug price increases (buying at old prices, selling at new), sources generics through ClarusONE (a joint venture with Walmart), and earns fee-for-service revenue from manufacturers. GLP-1 drugs have become a fast-growing revenue driver within distribution. Beyond distribution, McKesson has built two higher-margin platforms. The Oncology & Multispecialty segment is anchored by the U.S. Oncology Network, a community-based oncology practice network with over 3,400 providers, and also includes PRISM Vision (ophthalmology), the Sarah Cannon Research Institute (clinical research), and Ontada (oncology data and analytics). The Prescription Technology Solutions segment connects pharmacies, providers, and biopharma companies through electronic prior authorization, co-pay, and patient affordability programs. McKesson is actively separating its Medical-Surgical Solutions segment into an independent company, targeting an IPO in the second half of calendar 2027. McKesson allocates capital primarily to oncology and biopharma services acquisitions and to share repurchases, having returned approximately $23B to shareholders since FY20.