Alongside reporting results of its financial year that completed at the end of March, healthcare and pharmaceutical products distributor McKesson announced plans to separate its Medical-Surgical Solutions Segment into an independent company focused on medical supply and solutions.

McKesson said the new company will be a distinct medical-surgical supply and solutions business. The separation is expected to enhance the ability of both McKesson and the new entity to deliver value to customers, partners, patients and shareholders through investment and capital allocation.

The company’s Medical-Surgical unit had annual revenue of $11.4 billion for McKesson’s fiscal year that ended March 31, up 1% vs. fiscal 2024, while operating profit was $773 million.

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“In alignment with our strategy, we are announcing our intent to separate the Medical-Surgical Solutions segment into an independent company,” McKesson CEO Brian Tyler said in a May 8 news release. “This action is designed to unlock significant value for both McKesson and Medical-Surgical Solutions, as each focuses on maximizing growth and delivering operational excellence in their respective markets as world-class healthcare services and solutions leaders. We believe that the separation will deliver sustainable long-term growth for both companies.

The company acknowledged that specifics on the timing of the spin-off are to be determined.

The announcement coincided with the release of McKesson’s fourth quarter and full-year 2025 financial results, which showed increased sales for both periods.

McKesson posted fourth quarter sales of $90.8 billion, a 19% increase year-over-year, while net profit of $1.2 billion jumped 57% year-over-year. Meanwhile, the company reported full-year sales of $308.9 billion, a 16% increase year-over-year, while net profit increased 10% year-over-year.

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Tyler added: This marks another year of strong financial results, above our long-term targets, underpinned by operational execution against our strategic priorities, and disciplined and focused capital deployment. The strength of our core pharmaceutical distribution business, expansion of our Oncology platform and continued growth of our differentiated biopharma solutions businesses led to strong results.”