MCK · 10-Q · 2026Q2 · Full report
Liquidity and Debt Position
MCKESSON CORP · 2026-08-05 · Importance 84 · Surprise 74 · From source text
Cash and cash equivalents increased to $5.164 billion at June 30, 2026, from $3.975 billion at March 31, 2026, while total assets increased to $88.330 billion from $82.323 billion. Total debt increased to $9.729 billion from $6.526 billion, including $8.432 billion of long-term debt and $1.297 billion of current maturities. On June 9, 2026, Medical-Surgical Solutions established a $2.25 billion senior secured Term Loan B due 2032 and received $2.2 billion of net proceeds, initially bearing interest at Adjusted Term SOFR plus 2.25%. On April 24, 2026, McKesson replaced its prior revolving facilities with a $5.0 billion senior unsecured revolving credit facility maturing in April 2031; no revolver or commercial-paper borrowings were outstanding at June 30, 2026, and the company was in compliance with its covenants.
Key facts
- The carrying value of the Company's long-term debt was $9,729 million at June 30, 2026 and $6,526 million at March 31, 2026. source
- Estimated fair value of the Company's long-term debt was $9,803 million at June 30, 2026 and $6,549 million at March 31, 2026. source
- During the three months ended June 30, 2026, certain subsidiaries in the Medical-Surgical Solutions segment entered into the MMS Credit Agreement for a $750 million principal senior secured term loan due in 2031, a $250 million principal senior secured term loan due in 2028, and a $2.25 billion senior secured term loan due 2032 for total proceeds received, net of discounts and debt offering expenses, of $3.2 billion. source
- The Company's commercial paper program capacity: up to $5.0 billion and had no borrowings during the three months ended June 30, 2026 and 2025 source
- Consolidated working capital at June 30, 2026: $(7,519) million; at March 31, 2026: $(9,807) million. source
- Net change in cash, cash equivalents, and restricted cash for the three months ended June 30, 2026: $1,188 million; for the three months ended June 30, 2025: $(3,273) million. source
- Cash, cash equivalents, and restricted cash at June 30, 2026: $5,256 million; at March 31, 2026: $4,068 million. source
- Net cash used by operating activities for the three months ended June 30, 2026: $220 million; for the three months ended June 30, 2025: $918 million. source
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| liability | negative | realized | -3.6% | During the three months ended June 30, 2026, certain subsidiaries in the Medical-Surgical Solutions segment entered into the MMS Credit… |
| cash | positive | realized | +3.6% | During the three months ended June 30, 2026, certain subsidiaries in the Medical-Surgical Solutions segment entered into the MMS Credit… |
| cash | positive | realized | +2.6% | Consolidated working capital at June 30, 2026: $(7,519) million; at March 31, 2026: $(9,807) million. |
| cash | positive | realized | +1.3% | Net change in cash, cash equivalents, and restricted cash for the three months ended June 30, 2026: $1,188 million; for the three months… |
| cash | negative | realized | -0.3% | Net cash used by operating activities for the three months ended June 30, 2026: $220 million; for the three months ended June 30, 2025:… |
| assets | unclear | realized | — | Total assets at June 30, 2026: $88,330 million |
| liability | negative | realized | — | Total current liabilities at June 30, 2026: $70,356 million |
| liability | negative | realized | — | Total debt outstanding at June 30, 2026: $9,729 million |