McKesson Corporation (MCK) shares plummeted 5.10% in pre-market trading on Thursday, February 6, following the company's disappointing third-quarter fiscal 2025 results and contraction in gross margin.
The healthcare services and information technology company missed analysts' expectations for both earnings and revenue in the third quarter. McKesson reported adjusted earnings per share (EPS) of $8.03, slightly below the consensus estimate of $8.04. The company's revenue of $95.29 billion also fell short of expectations, missing the Zacks Consensus Estimate by 0.2%.
While McKesson's revenue grew 17.8% year-over-year, driven by continued momentum in the Pharmaceutical segment and increased prescription volumes, the company's gross margin declined nearly 40 basis points to 3.5% of net revenues. Higher costs of sales and operating expenses contributed to the margin contraction, raising concerns among investors.