McKesson Corp. used its second-quarter earnings call to draw a sharp line around one of its fastest-growing assets: the company’s accelerating use of AI and automated systems across distribution, oncology, and prescription technology services. Executives said these capabilities—already embedded in logistics, prior authorization, and specialty-drug access—are becoming central to how McKesson handles growing pharmaceutical complexity.
The company reported 10% revenue growth in the quarter to $103 billion and lifted its full-year outlook. But the most striking themes were the investments that don’t show up directly in revenue lines: automated warehouses, AI-supported affordability programs and analytics, and machine-driven workflows that are streamlining everything from prior authorizations to cold-chain management.
“We have made focused and significant investments in automation to support the growing complexity in supply chain management,” CEO Brian Tyler told analysts. “These investments improve operating efficiency, enhance customer experience and unlock productivity in our workforce.”
Chief financial officer (CFO) Britt Vitalone added that the combination of automation, AI-enabled tools, and modernization efforts directly shaped quarterly performance, saying the company’s results reflect “our unrelenting focus on cost discipline and operational efficiency, powered by a technology-first mindset and AI-driven modernization.”
AI and Automation in Distribution: Cutting Human Touchpoints by 75%
McKesson is rolling out automated order storage and retrieval systems across its North American facilities—technology that deeply reduces manual handling of products.
“At our U.S. national redistribution center,” Tyler said, “what would have normally taken eight physical human touches to complete a pick, pack and ship process now only takes two.”
The company argues these systems not only improve accuracy and fulfillment speed but also lighten the physical burden on warehouse workers. These tools also support the expanded flow of specialty drugs, which require more precise handling.
McKesson also hit a major federal compliance milestone under the Drug Supply Chain Security Act: the live exchange of serialized drug data across its network. Tyler said the transition required deep technical coordination. “We maintained exceptional service-level accuracy with almost no disruption,” he noted, calling it an example of AI- and data-enabled operational resilience.
AI in Prescription Technology: Prior Authorization Demand Surges
McKesson’s Prescription Technology Solutions segment posted some of its strongest growth as payers tightened controls around high-cost therapies, especially GLP-1 medications. AI-enabled tools now support much of the company’s access and affordability work.
Vitalone highlighted the role of AI-enhanced workflows, particularly in prior authorization: “We are seeing more growth in our technology services components, and that is really all of the things you mentioned,” he told analysts. “There are new products and programs, and we’re certainly seeing growth in some of our access programs like prior authorizations, particularly for GLP-1.”
The division processes 23 billion transactions a year, linking about 1 million providers and more than 50,000 pharmacies. These workflows increasingly rely on automated decisioning, error detection, and routing. Executives said the company will increase technological investment in the second half of the year to support additional AI-enabled features.
Vitalone said growth in the segment is being propelled by “strong organic volume growth and momentum across our access and affordability solutions,” and he emphasized that AI is now woven into these workflows to improve speed and accuracy.
AI and Data Infrastructure for Oncology and Cell and Gene Therapy
In specialty care and oncology, McKesson is building AI-driven platforms to support emerging therapies—an area with complex data demands.
Tyler pointed to new capabilities around cell and gene therapies, which require precise data handling, logistics orchestration, and patient-case tracking. The company launched InspiroCare, a support hub designed to guide patients through therapy initiation and monitoring.
“In August, we launched InspiroCare, a patient hub designed to simplify the complex journey of cell and gene therapies and provide personalized, compassionate support,” he said.
McKesson also opened a dedicated cold-chain facility with cryogenic and ultra-frozen storage. While the company did not specify AI models used there, Tyler said the site is equipped with technology “specifically designed for the unique requirements of these medications,” which industry analysts describe as increasingly reliant on sensor-driven monitoring, predictive alerts, and compliance automation.
The company’s oncology platform—anchored by The US Oncology Network—also uses data and analytics tools to help community providers manage treatment protocols, clinical trials, and operational performance.
AI as a Margin Driver
All three of McKesson’s core segments—North American Pharmaceuticals, oncology and multispecialty, and prescription technology—registered operating margin expansion. Vitalone attributed part of that margin lift to AI-enabled service mix:
“We saw good mix in the Rx technology business,” he said. “The mix from those technology services is driving more margin growth in that segment.”
Executives said the combination of automation, AI-supported services, and disciplined cost management helped push Q2 operating profit up 26% to a record $1.6 billion.
A Technology-First Trajectory
The company gave no indication it plans to slow technology spending. Vitalone cautioned that investment levels will rise in the second half of the year: “We do anticipate a higher level of investments in the second half of the year,” including for new AI-enabled services.
Tyler cast these investments as long-term commitments.
“These growth investments have been part of the algorithm for many, many years,” he said. “It’s measured against opportunities to continue to innovate, to expand the markets we can go after, and support our future growth.”
AI remains threaded through this strategy. It is supporting warehouse robotics, automating administrative blockers in patient access, and enabling new specialty-therapy services that the company believes will shape its next wave of growth.
As Vitalone put it: “Our technology-first mindset and AI-driven modernization continues to create value for all stakeholders.”
Don’t miss any content from Distribution Strategy Group. Join our list.
