Free cash flow
McKesson Free cash flow decreased by 51.4% to $1.12B in Q4 2025 compared to the prior quarter. Year-over-year, this metric grew by 144.8%, from -$2.51B to $1.12B. Over 3 years (FY 2022 to FY 2025), Free cash flow shows an upward trend with a 11.1% CAGR. This decline may warrant attention — for this metric, higher values are generally preferred.
Analysis
How to read this metric
An increase suggests strong operational efficiency and the ability to self-fund future innovation or return capital to shareholders, while a decrease may indicate heavy capital expenditure cycles or declining operational profitability.
Detailed definition
Free cash flow represents the cash generated by a company after accounting for cash outflows to support operations and m...
Peer comparison
High-growth semiconductor and AI infrastructure peers typically prioritize reinvestment, so free cash flow margins are often compared against R&D intensity and capital expenditure requirements of industry rivals.
cf_free_cash_flowHistorical Data
| Q2 '21 | Q3 '21 | Q4 '21 | Q1 '22 | Q2 '22 | Q3 '22 | Q4 '22 | Q1 '23 | Q2 '23 | Q3 '23 | Q4 '23 | Q1 '24 | Q2 '24 | Q3 '24 | Q4 '24 | Q1 '25 | Q2 '25 | Q3 '25 | Q4 '25 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Value | -$1.72B | $1.70B | $1.31B | $2.75B | -$1.01B | $1.02B | $1.56B | $3.20B | -$1.13B | $890.00M | $164.00M | $3.96B | -$1.49B | $1.96B | -$2.51B | $7.58B | -$1.03B | $2.31B | $1.12B |
| QoQ Change | — | +199.1% | -22.9% | +110.1% | -136.8% | +200.9% | +52.8% | +105.1% | -135.3% | +178.8% | -81.6% | >999% | -137.5% | +232.2% | -227.7% | +402.1% | -113.6% | +324.9% | -51.4% |
| YoY Change | — | — | — | — | +41.0% | -39.9% | +19.1% | +16.3% | -11.7% | -12.8% | -89.5% | +23.7% | -31.5% | +120.7% | <-999% | +91.4% | +30.8% | +17.8% | +144.8% |
Free cash flow at Other Companies
Frequently Asked Questions
- What is McKesson's free cash flow?
- McKesson (MCK) reported free cash flow of $1.12B in Q4 2025.
- How has McKesson's free cash flow changed year-over-year?
- McKesson's free cash flow increased by 144.8% year-over-year, from -$2.51B to $1.12B.
- What is the long-term trend for McKesson's free cash flow?
- Over 3 years (2022 to 2025), McKesson's free cash flow has grown at a 11.1% compound annual growth rate (CAGR), from $4.05B to $5.55B.
- What does free cash flow mean?
- The cash a company has left over after paying for its operating expenses and capital investments.