McKesson on track for IPO of Medical-Surgical business

IRVING, Texas – McKesson is moving steadily toward taking its Medical-Surgical business public in the second half of calendar year 2027, CEO and Director Brian Tyler said on a recent earnings call. 

The company marked a major milestone on Jan. 1 by completing key transition service agreements that support the separation of the Medical-Surgical division. The business – which provides supply distribution, logistics and related services across alternate care settings, including home medical equipment (HME) providers – is preparing to operate as a fully independent company. 

“This is an important step as we prepare the Medical-Surgical business to be an independent operation,” Tyler said. “We continue to focus on the next steps, which include establishing an independent organization and capital structure.” 

McKesson emphasized that the timing of the initial public offering (IPO) will, ultimately, depend on market conditions and regulatory approvals. 

Experience with strategic transactions 

Company executives continue to highlight McKesson’s track record with complex separation and divestiture activity, including its 2020 exit from Change Healthcare. 

More recently, the company successfully fully exited the European market with the sale of its retail and distribution businesses in Norway to NorgesGruppen. 

“These portfolio actions have streamlined the company, sharpened strategy and created significant shareholder value, including more than doubling returns on invested capital,” said Britt Vitalone, executive vice president and CFO. 

Medical‑Surgical performance looks flat 

The Medical-Surgical business reported $3 billion in revenue for the third quarter of fiscal year 2026 – a 1% increase, driven primarily by higher specialty pharmaceutical volumes. Operating profit fell 10% to $265 million, reflecting lower activity in physician office settings and lighter seasonal illness trends. 

Looking forward, McKesson expects revenue and operating profit growth at the lower end of its 2%–6% range, though officials cautioned that illness trends remain a swing factor. 

“We have observed a soft illness season demand in our fiscal third quarter,” Vitalone said. “In the second half of December, illness severity levels peaked based on CDC data. Variability remains a key factor. Timing, severity and the duration of each illness season can drive variation and meaningfully affect results on both a quarterly and annual basis.”