Earnings Per Common Share
Basic earnings per common share is computed by dividing net income by the weighted-average number of common shares outstanding during the reporting period. The computation of diluted earning per common share is similar to that of basic earnings per common share, except that the former reflects the potential dilution that could occur if dilutive securities or other obligations to issue common stock were exercised or converted into common stock. Potentially dilutive securities include outstanding stock options, restricted stock units, and performance-based and other restricted stock units.
Less than one million of potentially dilutive securities for fiscal 2025, fiscal 2024, and fiscal 2023 were excluded from the computation of diluted earnings per common share as they were anti-dilutive.
The computations for basic and diluted earnings or loss per common share were as follows:
Years Ended March 31,
(In millions, except per share amounts)202520242023
Income from continuing operations$3,481 $3,160 $3,725 
Net income attributable to noncontrolling interests(186)(158)(162)
Income from continuing operations attributable to McKesson Corporation3,295 3,002 3,563 
Loss from discontinued operations, net of tax— — (3)
Net income attributable to McKesson Corporation$3,295 $3,002 $3,560 
Weighted-average common shares outstanding:
Basic127.4 133.2 141.1 
Effect of dilutive securities:
Stock options— 0.2 0.2 
Restricted stock units (1)
0.7 0.7 0.9 
Diluted128.1 134.1 142.2 
Earnings (loss) per common share attributable to McKesson Corporation: (2)
Diluted
Continuing operations$25.72 $22.39 $25.05 
Discontinued operations— — (0.02)
Total$25.72 $22.39 $25.03 
Basic
Continuing operations$25.86 $22.54 $25.25 
Discontinued operations— — (0.02)
Total$25.86 $22.54 $25.23 
(1)Includes dilutive effect from restricted stock units and performance-based restricted stock units.
(2)Certain computations may reflect rounding adjustments.

Historical Timeline

Fiscal YearFiled
2025May 9, 2025Showing above
2019May 15, 2019

About Earnings Per Share Disclosures

The earnings per share disclosure breaks down the calculation from net income to both basic and diluted EPS, revealing the full impact of a company's capital structure on per-share economics. The reconciliation between basic and diluted share counts exposes how many stock options, RSUs, convertible securities, and warrants are potentially dilutive to existing shareholders.

Key signals: a widening gap between basic and diluted shares indicates growing dilution from equity compensation or convertible instruments. Anti-dilutive securities excluded from the diluted calculation deserve attention — they represent latent dilution that will materialize if the stock price rises. Watch for the effect of share buybacks on per-share metrics: EPS growth driven primarily by repurchases rather than income growth signals weakening fundamentals. Compare year-over-year changes in the diluted share count against equity compensation expense to assess whether management is effectively managing dilution.