Document McKESSON CORPORATION REPORTS FISCAL 2024 THIRD QUARTER RESULTS AND RAISES FULL YEAR GUIDANCE Third Quarter Highlights Consolidated revenues of $80.9 billion increased 15%. Earnings per diluted share from continu

McKESSON CORPORATION REPORTS FISCAL 2024 THIRD QUARTER RESULTS AND RAISES FULL YEAR GUIDANCE

Third Quarter Highlights

Consolidated revenues of $80.9 billion increased 15%.

Earnings per diluted share from continuing operations of $4.42 decreased $3.23.

Adjusted Earnings per Diluted Share of $7.74 increased 12%.

The US Oncology Network expanded its community oncology footprint with the addition of Nashville Oncology Associates and SCRI Oncology Partners.

Adjusted Earnings per Diluted Share guidance range raised to $27.25 to $27.65, from the previous range of $26.80 to $27.40.

The Company does not forecast GAAP earnings per diluted share from continuing operations1.

IRVING, Texas, February 7, 2024 - McKesson Corporation (NYSE MCK) today reported results for the third quarter ended December 31, 2023.

Fiscal 2024 Third Quarter Result Summary

McKesson delivered another quarter of solid results, led by growth across our North American businesses. These results are reflective of the commitment to our company priorities and growth strategies, delivering differentiated solutions and value in oncology and biopharma services. I'm proud of our performance and ability to continually create value for all stakeholders, said Brian Tyler, chief executive officer. I want to thank our dedicated team members, who continue to execute against our strategy and advance health outcomes for all.

As a result of our third quarter performance and solid operating momentum, we are raising and narrowing our guidance range for fiscal 2024 Adjusted Earnings per Diluted Share to $27.25 to $27.65.

Third quarter revenues were $80.9 billion, an increase of 15% from a year ago. Revenue increases were primarily driven by growth in the U.S. Pharmaceutical segment, resulting from increased prescription volumes, including higher volumes from specialty products, retail national account customers, and GLP-1 medications, partially offset by lower revenues in the International segment as a result of divestitures within McKesson's European business.

Third quarter earnings per diluted share from continuing operations was $4.42 compared to $7.65 a year ago, a decrease of $3.23, due to a pre-tax increase to the provision for bad debts of $515 million within the U.S. Pharmaceutical segment related to the Rite Aid bankruptcy and a prior year pre-tax benefit of $126 million associated with the termination of the tax receivable agreement with Change Healthcare.

Third quarter Adjusted Earnings per Diluted Share was $7.74 compared to $6.90 a year ago, an increase of 12%, driven by a lower tax rate and share count and growth in the U.S. Pharmaceutical and Prescription Technology Solutions segments, partially offset by higher corporate expenses, due to a prior year pre-tax benefit of $126 million associated with the termination of the tax agreement with Change Healthcare. Third quarter Adjusted Earnings per Diluted Share also included pre-tax losses of approximately $8 million associated with McKesson Ventures' equity investments.

For the first nine months of the fiscal year, McKesson returned $2.6 billion of cash to shareholders, which included $2.3 billion of common stock repurchases and $232 million of dividend payments. During the first nine months of the fiscal year, McKesson generated cash from operations of $167 million, and invested $418 million in capital expenditures, resulting in negative Free Cash Flow of $251 million.

Kevin Ozan joined McKesson's Board of Directors as an independent director and member of the Board of Director's Audit Committee and Finance Committee effective January 8, 2024.

McKesson received multiple awards and recognitions exemplifying its commitment to sustainability.

Recognized by Newsweek as one of America's Greatest Workplaces for Diversity in 2024.

Recognized as an Equality 100 Award winner by the Human Rights Campaign (HRC) Foundation, achieving 100 percent score on the HRC's 2023-2024 Corporate Equality Index.

Named as a Military Friendly Employer for the 11th consecutive year.

U.S. Pharmaceutical Segment

Revenues were $73.0 billion, an increase of 18%, driven by increased prescription volumes, including higher volumes from specialty products, retail national account customers, and GLP-1 medications.

Segment Operating Profit was $307 million. Adjusted Segment Operating Profit was $828 million, an increase of 6%, driven by growth in the distribution of specialty products to providers and health systems.

Prescription Technology Solutions Segment

Revenues were $1.2 billion, an increase of 7%, driven by increased prescription volumes in our technology services and third-party logistics businesses.

Segment Operating Profit was $178 million. Adjusted Segment Operating Profit was $193 million, an increase of 25%, driven by higher demand for access solutions, principally prior authorization services due to increased prescription volumes.

Medical-Surgical Solutions Segment

Revenues were $3.0 billion, an increase of 2%, driven by growth in the primary and extended care businesses, partially offset by lower contribution from kitting, storage, and distribution of ancillary supplies for the U.S. government's COVID-19 vaccine program.

Segment Operating Profit was $268 million. Adjusted Segment Operating Profit was $282 million, a decrease of 16%, driven by lower contribution from kitting, storage, and distribution of ancillary supplies for the U.S. government's COVID-19 vaccine program.

International Segment

Revenues were $3.6 billion. On an FX-Adjusted basis, revenues were $3.7 billion, a decrease of 18%, driven by divestitures within McKesson's European business, partially offset by higher pharmaceutical distribution volumes in the Canadian business.

Segment Operating Profit was $126 million. On an FX-Adjusted basis, Adjusted Segment Operating Profit was $104 million, a decrease of 27%, driven by divestitures within McKesson's European business.

McKesson does not provide forward-looking guidance on a GAAP basis as the Company is unable to provide a quantitative reconciliation of forward-looking Non-GAAP measures to the most directly comparable forward-looking GAAP measure, without unreasonable effort. McKesson cannot reasonably forecast LIFO inventory-related adjustments, certain litigation loss and gain contingencies, restructuring, impairment and related charges, and other adjustments, which are difficult to predict and estimate. These items are generally uncertain and depend on various factors, many of which are beyond the company's control, and as such, any associated estimate and its impact on GAAP performance could vary materially.

McKesson is raising fiscal 2024 Adjusted Earnings per Diluted Share guidance to $27.25 to $27.65 from the previous range of $26.80 to $27.40 to reflect solid operating performance, which reflects a growth rate of 5% to 7%.

Fiscal 2024 Adjusted Earnings per Diluted Share guidance includes approximately ($0.15) related to year-to-date losses associated with McKesson Ventures' equity investments.

Additional modeling considerations will be provided in the earnings call presentation.

Conference Call Details

McKesson has scheduled a conference call for today, Wednesday, February 7th at 4 30 PM ET to discuss the company's financial results. The audio webcast of the conference call will be available live and archived on McKesson's Investor Relations website at investor.mckesson.com.

Upcoming Investor Events

McKesson management will be participating in the following investor conferences

Barclays Global Healthcare Conference, March 12-14, 2024

BofA Securities 2024 Healthcare Conference, May 14-16, 2024

The audio webcast, and a complete listing of upcoming events for the investment community, including details and updates, will be available on McKesson's Investor Relations website.

Non-GAAP Financial Measures

GAAP refers to the U.S. generally accepted accounting principles. This press release includes GAAP financial measures as well as Non-GAAP financial measures, including Adjusted Gross Profit, Adjusted Operating Expenses, Adjusted Other Income, Adjusted Interest Expense, Adjusted Income Tax Expense, Adjusted Earnings, Adjusted Earnings per Diluted Share, Adjusted Segment Operating Profit, Adjusted Segment Operating Profit Margin, Adjusted Corporate Expenses, Adjusted Operating Profit, FX-Adjusted results and Free Cash Flow which are financial measures not calculated in accordance with GAAP. Refer to the "Supplemental Non-GAAP Financial Information" section of the accompanying financial statement tables for the definitions and usefulness of the Company's Non-GAAP financial measures and the attached schedules for reconciliations of the differences between the Non-GAAP financial measures and their most directly comparable GAAP financial measures.

Cautionary Statements

This earnings release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements may be identified by their use of terminology such as "believes," "expects," "anticipates," "may," "will," "should," "seeks," "approximately," "intends," "projects," "plans," "estimates," "targets," or the negative of these words or other comparable terminology. The discussion of financial outlook, guidance, trends, strategy, plans, assumptions, expectations, commitments, intentions, and the potential impact of a customer's reorganization in bankruptcy on the Company and its operation or financial results may also include forward-looking statements. Readers should not place undue reliance on forward-looking statements, such as financial performance

forecasts, which speak only as of the date they are first made. Except to the extent required by law, we undertake no obligation to update or revise our forward-looking statements. Forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those projected, anticipated, or implied. Although it is not possible to predict or identify all such risks and uncertainties, we encourage investors to read the risk factors described in our publicly available filings with the Securities and Exchange Commission and news releases.

These risk factors include, but are not limited to we experience costly and disruptive legal disputes and settlements, including regarding our role in distributing controlled substances such as opioids we might experience losses not covered by insurance or indemnification we are subject to frequently changing, extensive, complex, and challenging healthcare and other laws we from time to time record significant charges from impairment to goodwill, intangibles, and other long-lived assets we might not realize expected benefits from business process initiatives we experience cybersecurity incidents that might significantly compromise our technology systems or might result in material data breaches we may be unsuccessful in achieving our strategic growth objectives we might be harmed by large customer purchase reductions, payment defaults or contract non-renewal our contracts with government entities involve future funding and compliance risks we might be harmed by changes in our relationships or contracts with suppliers our use of third-party data is subject to limitations that could impede the growth of our data services business we might be adversely impacted by healthcare reform such as changes in pricing and reimbursement models we might be adversely impacted by competition and industry consolidation we might be adversely impacted by changes or disruptions in product supply and have difficulties in sourcing or selling products due to a variety of causes we might be adversely impacted as a result of our distribution of generic pharmaceuticals we might be adversely impacted by changes in the economic environments in which we operate changes affecting capital and credit markets might impede access to credit, increase borrowing costs, and disrupt banking services for us and our customers and suppliers and might impair the financial soundness of our customers and suppliers we might be adversely impacted by changes in tax legislation or challenges to our tax positions we might be adversely impacted by fluctuations in foreign currency exchange rates we might be adversely impacted by events outside of our control, such as widespread public health issues, natural disasters, political events and other catastrophic events and we may be adversely affected by global climate change or by legal, regulatory, or market responses to such change.

About McKesson Corporation

McKesson Corporation is a diversified healthcare services leader dedicated to advancing health outcomes for patients everywhere. Our teams partner with biopharma companies, care providers, pharmacies, manufacturers, governments, and others to deliver insights, products and services to help make quality care more accessible and affordable. Learn more about how McKesson is impacting virtually every aspect of healthcare at McKesson.com and read Our Stories.

Rachel Rodriguez, 469-260-0556 (Investors)

Rachel.Rodriguez McKesson.com

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McKESSON CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (GAAP)

(in millions, except per share amounts)

(a)Certain computations may reflect rounding adjustments.

Any percentage changes displayed above which are not meaningful are displayed as zero percent.

Refer to our applicable filings with the SEC for additional disclosures including our Quarterly Reports on Form 10-Q for fiscal 2024 and 2023 as well as our

Annual Report on Form 10-K for fiscal 2023.

McKESSON CORPORATION

RECONCILIATION OF GAAP OPERATING RESULTS TO ADJUSTED RESULTS (NON-GAAP)

(in millions, except per share amounts)

(a)Certain computations may reflect rounding adjustments.

(b)Adjusted earnings per diluted share on an FX-adjusted basis for the three and nine months ended December 31, 2023 was $7.72 and $21.27, respectively, which excludes the foreign currency exchange effect of $0.02 and $0.03, respectively.

Any percentage changes displayed above which are not meaningful are displayed as zero percent.

Refer to the section entitled Financial Statement Notes of this release.

For more information relating to the Adjusted Earnings (Non-GAAP) and Adjusted Earnings per Diluted Share (Non-GAAP) definitions, refer to the section entitled "Supplemental Non-GAAP Financial Information" of this release.

Schedule 2 (continued)

McKESSON CORPORATION

RECONCILIATION OF GAAP OPERATING RESULTS TO ADJUSTED RESULTS (NON-GAAP)

Any percentage changes displayed above which are not meaningful are displayed as zero percent.

Refer to the section entitled Financial Statement Notes of this release.

For more information relating to the Adjusted Gross Profit (Non-GAAP), Adjusted Operating Expenses (Non-GAAP), Adjusted Other Income (Non-GAAP), Adjusted Interest Expense (Non-GAAP), and Adjusted Income Tax Expense (Non-GAAP) definitions, refer to the section entitled "Supplemental Non-GAAP Financial Information" of this release.

McKESSON CORPORATION

RECONCILIATION OF GAAP SEGMENT OPERATING RESULTS TO ADJUSTED RESULTS (NON-GAAP)

Any percentage changes displayed above which are not meaningful are displayed as zero percent.

Refer to the section entitled Financial Statement Notes of this release.

For more information relating to the Adjusted Segment Operating Profit (Non-GAAP), Adjusted Operating Profit (Non-GAAP), Adjusted Corporate Expenses (Non-GAAP), FX-Adjusted (Non-GAAP), and Adjusted Segment Operating Profit Margin (Non-GAAP) definitions, refer to the section entitled "Supplemental Non-GAAP Financial Information" of this release.

Schedule 3 (continued)

McKESSON CORPORATION

RECONCILIATION OF GAAP SEGMENT OPERATING RESULTS TO ADJUSTED RESULTS (NON-GAAP)

Any percentage changes displayed above which are not meaningful are displayed as zero percent.

Refer to the section entitled Financial Statement Notes of this release.

For more information relating to the Adjusted Segment Operating Profit (Non-GAAP), Adjusted Operating Profit (Non-GAAP), Adjusted Corporate Expenses (Non-GAAP), FX-Adjusted (Non-GAAP), and Adjusted Segment Operating Profit Margin (Non-GAAP) definitions, refer to the section entitled "Supplemental Non-GAAP Financial Information" of this release.

McKESSON CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

(in millions, except per share amounts)

McKESSON CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS