morning, everyone. and you, Thank good Brian,
Our and quarter has last spoke our The certainly partners were employees, work. fiscal during earnings when fiscal we expecting fourth third the call. fourth live quarter we COVID-XX customers, crisis quarter our impacted way different and communities very than health was
prouder strength business how our and supported We during environment, this resiliency be our financial times. with and responded. team the our of across employees, patients could have demonstrated performance and solid world not our these customers, challenging In the teams new communities of
solid. Let me business start of fundamentals by the that McKesson's reaffirming are
in the strategy clear, the continue Despite our a and current Our chain. play of remain challenges businesses the is the health promising. environment, leading care and business supply uncertainties unchanged to and prospects the role for
Our intact. focus, discipline execution financial and remain
this with today's typically I rapidly help in than have primary how on Today, granularity and goals our understand I our uncertain and more to three you performing for environment. you business view recent call. evolving provide trends I'll do is
our from and estimated impacts an provide fourth fiscal results, update on including XXXX quarter to COVID-XX. the First,
detailed Second, of the are And provide recent third, fiscal we a trends to overview an provide seeing. outlook. XXXX to
have withdrawn not companies and Many provided guidance.
in year. the upcoming uncertainties the our fiscal my more analyst given assumptions in and detail it I prepared wide to felt on the the environment provide important disparity and models, later views However, remarks. address across will guidance we our was in
relates of to it fiscal like I'd bit However, provide XXXX. as to a framing
challenging anticipate of XXXX occurring today ending impacts most providing XX September most see quarter quarter our will the XX. gradual fiscal that we the XXXX of with that severe second from challenging The our improvement will in guidance severe the June our improvement are be first fiscal in ending results with over we We the to fiscal first second be assumes half COVID-XX fiscal fiscal year. during with half begin continued our
state me this Let the at call. beginning of
stake second We expect growth from setting to year, fiscal adjusted of per diluted the and aside the income in equity XXXX operations the will fiscal half business Change in as adjusted prior the in deliver from XXXX earnings Healthcare. compared share our when contribution
of full McKesson earnings XXXX and XX% share solid with year posted turn This to to result review fiscal adjusted to now XXXX of included return Let's adjusted all profit results. fiscal XXXX operating growth diluted fiscal reportable in close $XX.XX. was a cycles. per above a a our
Additionally, successful exit our transaction. we're completed during the a to have pleased of split investment Change off the tax-efficient quarter through in Healthcare
our $XXX exit post-tax million, in which impacted Our gain a in the GAAP-only pre quarter. resulted results and of
initiatives. positioned the move our against we with growth forward focus increased to are split-off With well strategic complete,
Our balance credit sheet investment remains rating. solid, which our underpins grade
Our growth to and opportunities. uncertainty necessary financial navigate market flexibility the position current future provides us
the pandemic. On X business. Organization March a building our third I This mid-March. outbreak the build continued XX, call, momentum to discussed through earnings across February the World declared On Health quarter COVID-XX momentum
in and incremental provided Canada, as began This equipment. change, patterns stocked to demand net consumer volumes up increased, to medications U.S., spread. a tailwind continued and revenue virus results. businesses behavior after, Shortly quarter to the distribution as experienced the increased Europe Pharmaceutical demand our personal on our protective fourth and people
There's impact demand for $X fourth I of of fiscal a pharmaceuticals. billion quarter moment approximately revenue, customer from on our the want results. resulting provide primarily estimated incremental take to to COVID-XX consolidated higher
the first fiscal XXXX. expect reverse We in this quarter of
variable gross favorably by in the was these in volumes. impacted offset expenses, a approximately by as operating Adjusted $XX quarter profit million, million of approximately result incremental $XX
to including of charitable effect quarter also largely a adjusted on million higher and We $XX earnings impact expenses had our communities. the remote in our expenses support the previously in frontline to employees, contributions offset. In operating investments our one-time approximately fourth results, adjusted nominal a of summary, quarter, the impacts support had workforce COVID-XX as mentioned
the count a earnings driven costs which businesses, now the lower to XX% I Fourth results share in discussion growth a compared in the Solutions quarter by Pharmaceutical fourth transition our offset per for the earlier. adjusted and U.S. corporate the primarily Specialty quarter. adjusted Let's one-time of year, diluted and includes to expenses, earnings by share in European higher up was prior Pharmaceutical $X.XX, referenced quarter
our Moving Specialty fourth Solutions growth segment. consolidated in to on our the can by prior Pharmaceutical U.S. which found period, the details principally for of revenues be four. quarter results, XX% versus the Consolidated increased driven slide and
of previously approximately estimated revenue COVID-XX billion the impact quarter. in $X incremental mentioned, the As was of
Excluding these year-over-year. increased X% consolidated sales, approximately incremental revenues
quarter accounted expenses specialty and These and expenses Fourth future growth oncology operating Specialty by Pharmaceutical up X% the X% expenses quarter. previously of by the incremental year-over-year, year-over-year, profit one-time led and businesses, X% Fourth was growth the for quarter COVID-driven U.S. Medical-Surgical support our driven adjusted adjusted and one-time increase. and during increased in Solutions year-over-year technology to mentioned in investments segments. gross infrastructure approximately our increased
to commercial compared increase year. prior million of $XX a income the prior lower of $X in year, balances. expense for due Interest decline compared operations was the quarter, quarter, as paper to from billion X% the an Adjusted to the X% was
rate by the business and adjusted mainly for discrete XX.X% tax of mix quarter, was Our tax our driven benefits.
Wrapping consolidated up our results.
Our fourth were average a year-over-year. quarter shares decrease million, diluted XXX weighted of X%
$X.XX a includes previously our outstanding from $XX.X Change results which million. earnings mentioned adjusted Healthcare, lowered split-off Our benefit shares our by of
our retail with X XX% increases segment. for conversions. X, Specialty including generic the quarter, the were and branded Next, through billion be by resulting were I'll Slides customers, can $XX.X growth These to national partially offset from which COVID-XX. price our starting incremental Pharmaceutical from and by driven large U.S. review volume and Revenues account pharmaceutical results, up branded Solutions
points, operating and operating quarter was previously basis decrease margin in specialty XXX continued X businesses, growth by oncology by full partially year Fourth operating in points. adjusted a basis segment manufacturer increased to profit million services. driven adjusted profit offset the to adjusted of the announced million, the X% X% increased $XXX investments Segment for and $X.X for
the Pharmaceutical X% an increased by profit incremental Next adjusted increased of operating driven the basis, as COVID-XX. growth revenues of $X.X European increase were On business, million. revenue an revenues Pharmaceutical X% year-over-year. Fourth $XX for including billion result FX-adjusted a Solutions, quarter, XXX% Distribution to quarter in
an year XXX%, lower X% to primarily basis, increased the Segment footprint and approximately the adjusted the for profit X full rationalize XX part prior operating and prior in year margin by On operating lapping basis points. streamline an as year profit $XX increased of mentioned $XXX million, rationalization operating expenses points, item. adjusted operating of functions increase The for inventory year actions of of million. by driven FX-adjusted and full taken result a a the segment basis driven expense previously to was back-office adjusted charge our store previously
pharmaceutical organic by Moving growth, for our quarter primarily in Segment debt quarter, Surgical, led driven million, XX%, the partially growth business. higher care our was adjusted for care bad and down the business, which principally by $X.X provision test volumes. a in included offset now primary flu the expenses to care organic Medical $XXX to driven business, primary our X% primary in higher were profit operating billion by revenues by kit up for quarter, including
review million points, year for organic segment margin year basis growth by Canadian our full XXX in with growth operating $XXX driven driven quarter, basis increase on by increased an adjusted for margin $X.X points. to Revenues the billion primarily were for an adjusted FX-adjusted of the up Others. Finishing the X% full X%, and businesses. business MRxTS basis XX revenues XX% and and operating the the up was Segment were
for from business. both healthcare, the was and lower growth X% MRxTS basis, quarter, the each organic in contribution primarily a down by by profit equity investment reported operating offset driven on $XXX Adjusted the partially company's million FX-adjusted in the
year of million Other adjusted full related the year, businesses. liability our $XX Healthcare the was volumes driven higher a X% in higher lapping in contractual prior reversal $XXX for to by by the million, operating our profit to MRxTS offset by volumes in down partially investment offset Change
was in Healthcare adjusted equity million Included Other, for Change year. from the full $XXX income
a record As no in the reminder, will result for longer beginning Healthcare income split-off. McKesson as equity of XXXX Change a adjusted fiscal
Corporate previously Moving quarter, million year-over-year, in to adjusted fees. $XXX reported higher onetime corporate increase the XX% These onetime expenses X% mentioned expenses primarily expenses McKesson of in driven increase. the year-over-year by for the accounted opioid-related legal and of an approximately
year increase planned of was for opioid adjusted year-over-year fiscal prior of an were a million, XX% to expenses in result to corporate increase For increases cost of related $XXX an in $XX increase compared million $XXX the million the The year. XXXX. investments litigation full and technology-related
slide be to cash, now Turning on which found can XX.
of XXXX, working U.S. deposit portion in a resulting fiscal $X.X result free European Fiscal cash continued our was year COVID-XX. generation, cash and on timing the to businesses. billion flow For the in XXXX on another represented we of year, XXXX favorable from timing distribution solid our expenditures. includes fiscal flow, capital focus which fiscal Similar due to million $XXX spent in capital efficiency, impacts generated
COVID-XX-related previously to We COVID-XX which of pull-forward expected quarter approximately from to end a first fiscal in with the our year. million is of benefited coincided mentioned response pandemic, benefit which the also $XXX reverse estimate fiscal demand We the of in the XXXX.
and $X.X include with of outstanding share fourth XXXX, quarter repayment dividends. a the our fiscal of of billion cash of repurchases a the paying we ended $X after of issuances, in to billion billion in approximately $X.X paper. commercial returned shareholders And via $X.X billion quarter, balance We which net down debt
up XXXX results. Wrapping fiscal
a of our a business our Despite position. of performance fourth profit solid quarter XXXX position. financial improved to the and across and fundamentals the the Our the operating reflecting business, model in recent company adjusted highlights financial every macroeconomic marked solid and strength is headwinds, in execution. return stable Fiscal resiliency growth
outlook. With our me that, let turn to XXXX fiscal
an for to my important we mentioned trends I As is impact provide seeing constructive it's our including environment, our of into views We opening with business, the insight surrounding economic remarks, our we the across provide the and outlook businesses and of it you duration pandemic. believe uncertainties believe the of in are the perspective our COVID-XX provide on view potential the to fiscal XXXX. to
And full of XXXX. volumes and initial We to fiscal near-term businesses. within. The of following long-term headwind, evidenced overview be are our to declaration, Organization on our and approach results operating presents the temporary. trend believe remains our I'll to a COVID-XX we take businesses. for a March footing our although environment solid this After pandemic brief underlying year business XX as QX the across Health the by World we a stable volume lower the began start by providing fundamentals spikes
evolve local orders. the place quickly to April, landscape In shelter in governments issued state, provincial continued and in
businesses volumes close meaning of our their and levels greater to our see off retail COVID-XX Throughout Oncology experienced XX% temporarily, distribution offices as recommendations. elective and center medical weekly volatility, trailed patients specialty volumes began government in to to up As procedures. April, sites doctors customers pharmaceutical going provider levels. result, and average fewer the adjusted in environment surgery a and business orders while pre and of to physician delays visits in declined, and
in through especially stabilize ophthalmology, declines businesses. of XX% decline improve seen the modestly From therapies XXXX. In o a retail we've to the were where couple the May, begin April, weeks versus calendar within first nearly onset U.S., of the of volumes showed pharmaceutical elective and sharp in our pandemic and
with point, in XXXX. To progression curve well expectations the of the below on the and and medical have begun to provider levels. specialty our of the our this our relative line of view stabilize, over is in pre-COVID although course recovery fiscal businesses confirms Volumes shape also
we that assumptions days, I based will cause the underlying today weeks is certainty know change these from guidance present will be that occur in clear you I that this to and what is today. what events at time, the note that on want we to providing we will and are to months one coming
Next, economic some couple I'll macro provide framing of on key level assumptions. a
We are consumption virus assuming scenarios to of leading of precluding the and second not a that the wave services, returns, supplies home healthcare patient shelter pharmaceutical products.
We are not events. assuming insolvency any systemic customer
We gradually and fiscal interactions do We assume begins our to and begin of unemployment fiscal improve the the back in across and fiscal quarter oncology to that of pharmacy continue in peaks quarters improve gradually year. first visits half to do physician our fiscal second office quarter, our in that remaining will resume year. our in assume an
is Our that improves the oncology environment, our particular, normal in in in provider severe mind, of recovery the with me businesses a our particular, With fourth and volumes market, and largest and fiscal to turn assumptions each our underlying shape XXXX view guidance. those of quarter significant first the the our let in that quarter. specialty medical, fiscal more the the more to gradually in to U.S., quarter return assumes impact,
notably to of which uncertainty earnings economic $XX.XX, per be diluted past in is adjusted expect the We range than $XX.XX mentioned given guidance assumptions. ranges, to inherent the in our wider previously share
progression positive a anticipate the earnings we over remarks, course opening my in XXXX. fiscal of discussed I As
be sharply a basis. sequential expect QX year-over-year on and down We to
to into growth our year, second in recovery per of diluted the quarter begins share, recovery operations the the modest income of that and second returning fiscal fiscal back assume year. half earnings the adjusted adjusted half business fiscal We in with the progresses and this from
refer list full a For through slide please our XX XX to presentation. slides supplemental in assumptions, XXXX fiscal of
a revenue each Pharmaceutical walk headwinds closures X% outlining through segment, than and In items, Rather procedures. as our office starting expect assumption, delays you the Specialty and U.S. of growth, in which businesses, solutions I'll segments. we and in the current X% management provider Solutions key considers practice with just elective result the to
businesses. year, to operating Adjusted expected down mentioned is be our the of compared flat as to result specialty profit to prior X% in previously the a headwinds as
flat We expect result X% that reflect outlined growth, our with previously the second assumptions. will operating to profit in half recovery line adjusted
with pharmaceutical largely U.S. we anticipate branded In the price experience consistent our fiscal market, mid-single-digit increases, XXXX. in
reminder, XX% our of branded rate fixed approximately manufacturers a contracted a fee-for-service basis. on As are
to segment. Moving the Solutions European
to flat expected the customer to compared of revenues the to be XX% fiscal between anticipated a also by decline the on of XX% profit X% year. year. and over pandemic is as to the behavior prior impacts operating Adjusted We half first driven patterns decline approximately COVID-XX expect to
operating market and will We to to country expect that variability the with profit prior the normal. second half to by results return begins adjusted growth flat be X% as each year compared to as opens
now Transitioning Medical Surgical. to
offices, ambulatory deferred. lab centers our supports primary care been or As portfolio physician been medical-surgical surgery a have we've visits discussed XX% of and reference sites procedures impacted more and care previously, significantly, we canceled have dynamic and sites, of electric locations. office broad in have Medical These Approximately Surgical. as business
end developed returning comfortable few to for inform do projected to of In get a several take low our the constructing will our potential sites, office elective outlook and for the Medical-Surgical demand with believe high quarters to could we the We range end this we it but from estimates. scheduling the outcomes return. segment, physician patients procedure, an to
business and volumes. our modest few Over medical-surgical the in we stabilize, weeks, seen to we've begin improvements see past
recovery of the with further improvements year. half second our quarter the expect to second fiscal and continue in our We fiscal through demand
softened to the primarily X% the decline, expect of first half by in a revenue fiscal driven we Therefore, X% demand year.
As a result of these headwinds. macro level
operating the full year. decline XX% profit XX% We for to also expect adjusted a
profit to results the half demand year. operating second that improve, continues As adjusted XX% to prior grow to as we the expect compared X% will
retail and short-term For businesses in lower XX%, revenue the in driven volumes. X% approximately prior across expected included foot to the Other, to is expected by stores traffic decline authorization remaining lower in Canada
As XXXX results in a fiscal adjusted investment in reminder, include XXXX. million which fiscal $XXX equity our included in Change income Healthcare,
will year, other XX% we half for flat Healthcare within to to X% the prior for Change other second return the full be the adjusted as the the in that greater expected normal year results fiscal comparison year it is purposes, volumes. in within profit businesses increase expect than the but down Excluding to operating of
Now let me turn to the view. consolidated
expect anticipated We growth XX% to to as compared a from to to be and X% the operations decline X% adjusted income XX% prior year. revenue is
Excluding the basis operations full assumptions. to fiscal decline from year, for the X% we second Healthcare the our recovery in half adjusted fiscal XXXX, stated from results with economic line grow but that of expect the to year will in of income X% year-over-year X% a XX% Change on will
expect corporate assumption programs. costs approximately flat on We litigation and reflects also We to expenses year, prior remain year-over-year. our be to focused cost compared be flat savings to roughly opioid-related this
annual target Our gross of end track for to $XXX on substantially to fiscal end the approximately $XXX to on million, we the realize are remains for XXXX. million cost of pretax are substantially track which savings realize
Additionally, COVID-XX mitigation categories. effort in spend reduce the pandemic, we've including all continue the across implemented by of headwinds controllable presented efforts light an to
million line, in of $XXX million. to range we the below Moving $XXX interest the expense expect
of anticipated during from which approximately range realize attributable to discrete assume year rate a year. full items expect of non-controlling $XXX to expect XX%, million of interest includes that may vary We XX% course to the we quarter-to-quarter We and income tax to adjusted in tax the $XXX the million.
fiscal shares $XXX XXXX approximately impact million. to the in a we anticipate average be to $XXX And rate million $X.XX. expect unfavorable approximately impact exchange movements weighted currency be net for outstanding We of foreign of diluted
capital with deployment. wrap-up a me on cash fiscal and outlook comments few XXXX our Let flow
expenses acquisitions cash We which includes forward expect of $X.X and pull software and free flow discussed. billion COVID-XX of $X.X billion, of the impacts previously is to property net approximately capitalized
flow continue to strategic capitalized and priorities of $XXX to use We to manufacturer $XXX anticipate will the software to range our of million. invest acquisitions services. our oncology in property in be and cash expenses internally million We
At McKesson, generate operating to healthy capital our deployment continued flow. cash starts with ability
continue balanced to will We and a capital approach deployment. disciplined
and clear remain consistent. priorities Our
in Our capital flow demonstrated solid of us our generation history provides allocation cash flexibility program.
in investments First, we assets. strategic prioritize growth our
assets in to capabilities services manufacturer into example, leading our to an and extend invest As we our and continued oncology and positions. differentiated QX,
further capital drive current generation. offer our invest to impact differentiation M&A in and to our at that and cash on strategy our position in continue flow on will opportunities strategic we long-term does to XXXX, not businesses are future fiscal returns invest for initiatives accelerate and superior growth. environment In that desire multiples growth The
our returning yet our remain a repurchase also we growing to modest share that billion And capital would to dividend We you on share shareholders remaining and I to buybacks. through have $X.X committed authorization. currently remind
We've long-term to financial access credit ability our our in our underpins commercial which the flexibility markets. maintained paper rating, debt and investment-grade
not has the our nor have We upon. near-term debt to needs. been At immediate access facility, which liquidity to this billion we also access no draw revolver need credit drawn meet $X time, long-term our through to have revolving upon market
the our pleased results quarter to we we how partners, focused extraordinary with brought demands We on responded proud of the of by employees, closing, customers, are communities. In pandemic. fiscal remain fourth and and on this our
along consistent While with presents many and execution. environment stable show fundamentals the external businesses our to resilient unknowns, continue
to solid at underpin a our continue aligned rating, generation, grade aimed have which investment in strategy, areas we'll shareholders. sheet balance and creating invest to our capital to deploy returns and healthy credit for our to balanced We growth continue cash
current our macroeconomic create supply the remain confident and through ability in and stability our to Despite the strength and of distribution sourcing operations. chain in our business headwinds, we
In the opportunity you ask to And yourself time, to with your the participate. of that, allow to for question I’d I'll the questions. over to one just interest turn to limit others call an operator
