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# McKesson Books A $105 Million Foreign Tax Release As Data-Breach Suits Pile Up
- URL: https://www.bullished.co/mckesson-books-a-105-million-foreign-tax-release-as-data-breach-suits-pile-up-6f7a76fe/
- Published: 2026-11-04T22:49:58.000Z
- Updated: 2026-11-04T22:49:58.000Z
- Description: A foreign tax-asset release cut McKesson's tax bill in the quarter, while class actions over a cybersecurity incident reached a Texas federal court.
- Author: Matteo Parrino
- Tags: SEC Filings, MCK, Industry: Healthcare

McKesson, the drug distributor, booked a [$105 million net discrete tax benefit](https://www.sec.gov/Archives/edgar/data/0000927653/000092765326000281/mck-20260930.htm?ref=bullished.co) in the quarter ended September 30, 2026 from releasing a valuation allowance in a foreign jurisdiction, its 10-Q filed Wednesday shows. The same filing says the company has been served with multiple data-breach class actions since September.

## A foreign tax asset, again

A valuation allowance is a reserve against tax assets the company might not use. McKesson said management reassessed and concluded it is more likely than not that the additional deferred tax assets will be realized, so it reduced the reserve. A year earlier, the same kind of release produced a $119 million benefit.

The prior quarter's tax note had [credited its $33 million discrete benefit primarily to share-based compensation](https://www.sec.gov/Archives/edgar/data/0000927653/000092765326000234/mck-20260630.htm?ref=bullished.co), so the allowance release is a different driver this time.

Income tax expense was $266 million on pretax income of $1,562 million, a reported rate of 17.0% against 16.6% a year earlier. Diluted earnings per share [rose to $10.44](https://www.kare11.com/article/syndication/associatedpress/mckesson-fiscal-q2-earnings-snapshot/616-4ee09602-25d2-4970-9471-ffe38ac87370?ref=bullished.co) from $8.92, and the weighted-average diluted share count fell to 116.7 million from 124.4 million, which the filing ties to buybacks.

## Texas data-breach suits

Since September, McKesson has faced putative class actions in Texas federal court, in the Northern District, led by O'Connor v. McKesson Corporation. Plaintiffs say the company failed to protect consumers' health and personal data after a cybersecurity incident in which criminals stole information. They seek an injunction, damages, interest and fees.

Separately, a federal court in New York dismissed a False Claims Act complaint over the Horizon Clinicals health-record product in its entirety on September 30, 2026, the filing says.

## Deals, buybacks and a negative equity line

McKesson distributes branded, generic, specialty and over-the-counter drugs to pharmacies, hospitals and physician practices in the U.S. and Canada. It agreed on October 5 to pay about $1.4 billion for a 49% stake in Option Care Health, a home-infusion provider, with Clayton, Dubilier & Rice holding 51%. The company expects that deal to close in the first half of calendar 2027.

In early November it completed purchases of Precision Medicine Group for about $2.25 billion and a controlling interest in Spectrum Vision Partners for about $525 million. Apollo-managed funds took roughly a 13% stake in Medical-Surgical Solutions on June 1, part of McKesson's plan to separate that unit.

In the first six months it returned $3.6 billion to shareholders, $3.4 billion of it through buybacks. The stockholders' deficit stood at $3,954 million at September 30, versus $2,172 million at March 31\. Operating cash flow for the six months was $2,850 million, helped by a $2.6 billion swing in accounts payable that the filing ties to vendor payment timing and the day of the week the period ends.

In its [earnings release](https://www.sec.gov/Archives/edgar/data/0000927653/000092765326000279/mck%5Fexhibit991x9302026.htm?ref=bullished.co), McKesson raised its fiscal 2027 adjusted earnings guidance to $45.60 to $46.40 a share, from $44.20 to $45.00.

McKesson's market value was $116.5 billion as of Wednesday's report.

### Sources

- [10-Q Filing — McKesson Corp. (MCK)](https://www.sec.gov/Archives/edgar/data/0000927653/000092765326000281/mck-20260930.htm?ref=bullished.co) — SEC EDGAR
- [10-Q Filing — McKesson Corp. (MCK), Q1 FY2027 filed 2026-08-05 (comparison basis)](https://www.sec.gov/Archives/edgar/data/0000927653/000092765326000234/mck-20260630.htm?ref=bullished.co) — SEC EDGAR
- [Earnings release (8-K Item 2.02, mck\_exhibit991x9302026.htm) — McKesson Corp., filed 2026-11-04](https://www.sec.gov/Archives/edgar/data/0000927653/000092765326000279/mck%5Fexhibit991x9302026.htm?ref=bullished.co) — SEC EDGAR
- [McKesson GAAP EPS of $10.47 beats by $0.23, revenue of $110.96B beats by $1.01B (MCK:NYSE) | Seeking Alpha](https://seekingalpha.com/news/4665624-mckesson-gaap-eps-of-10%5F47-beats-by-0%5F23-revenue-of-110%5F96b-beats-by-1%5F01b?ref=bullished.co) — seekingalpha.com
- [McKesson Stock: The Biggest Drug Wholesaler Just Crushed Earnings Views — Here's What To Know | Investor's Business Daily](https://www.investors.com/news/technology/mckesson-stock-mckesson-earnings-q2-2027/?ref=bullished.co) — investors.com
- [McKesson: Fiscal Q2 Earnings Snapshot | kare11.com](https://www.kare11.com/article/syndication/associatedpress/mckesson-fiscal-q2-earnings-snapshot/616-4ee09602-25d2-4970-9471-ffe38ac87370?ref=bullished.co) — Associated Press
- [Why McKesson (MCK) Is Back In The Spotlight](https://sg.finance.yahoo.com/news/why-mckesson-mck-back-spotlight-121119014.html?ref=bullished.co) — Yahoo Finance
- [Will MCK's Pharma & Specialty Demand Offset Pricing Headwind in Q2?](https://finance.yahoo.com/healthcare/articles/mcks-pharma-specialty-demand-offset-131500917.html?.tsrc=rss&ref=bullished.co) — Yahoo Finance