McKESSON CORPORATION REPORTS FISCAL 2025 FIRST QUARTER RESULTS First Quarter Highlights Consolidated revenues of $79.3 billion increased 6%. Earnings per diluted share of $7.00 decreased $0.02. Adjusted Earnings per Dilu

McKESSON CORPORATION REPORTS FISCAL 2025 FIRST QUARTER RESULTS

First Quarter Highlights

Consolidated revenues of $79.3 billion increased 6%.

Earnings per diluted share of $7.00 decreased $0.02.

Adjusted Earnings per Diluted Share of $7.88 increased 8%.

McKesson's Board of Directors approved a 15% increase to the quarterly dividend, to $0.71 per share. This marks the eighth consecutive year of dividend increases.

McKesson's Board of Directors approved a $4.0 billion increase to the share repurchase program, bringing the total share repurchase authorization to $9.9 billion as of July 2024.

Adjusted Earnings per Diluted Share guidance range raised to $31.75 to $32.55, from the previous range of $31.25 to $32.05.

Fiscal 2025 Adjusted Earnings per Diluted Share guidance range indicates 16% to 19% growth compared to prior year.

The Company does not forecast GAAP earnings per diluted share1.

IRVING, Texas, August 7, 2024 - McKesson Corporation (NYSE MCK) today announced results for the first quarter ended June 30, 2024.

Fiscal 2025 First Quarter Result Summary

McKesson delivered Adjusted Earnings per Diluted Share growth of 8% in the first quarter. As a result of our first quarter performance and confidence for the remainder of the year, we are raising our guidance range for fiscal 2025 Adjusted Earnings per Diluted Share to $31.75 to $32.55, said Brian Tyler, chief executive officer. I want to thank the McKesson employees for their hard work across the enterprise in service of our customers.

We continue to advance our strategic priorities leveraging our broad capabilities across the enterprise. Strong momentum continues across our U.S. Pharmaceutical segment, particularly within our broad Oncology offerings. First quarter results were impacted by lower contributions from access programs in our Prescription Technology Solutions segment, and slower growth, including customer mix and demand shifts, in our Medical-Surgical business. We remain confident in our strategy and ability to deliver on our raised fiscal 2025 guidance and longer-term objectives.

We are also pleased that the Board approved a 15% increase to the dividend, marking the eighth consecutive year of a dividend increase. The Board also authorized a $4.0 billion increase to the share repurchase program. These actions reflect the strong performance and financial position of the Company, and the confidence the Board and Management have in our future growth prospects.

First quarter revenues were $79.3 billion, an increase of 6% from a year ago, 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.

First quarter earnings per diluted share was $7.00 compared to $7.02 a year ago, a decrease of $0.02.

First quarter Adjusted Earnings per Diluted Share was $7.88 compared to $7.27 a year ago, an increase of 8%, driven by pre-tax gains of $110 million associated with McKesson Ventures' equity investments within corporate expenses, compared to pre-tax losses of $7 million in the first quarter of fiscal 2024, and a lower share count, partially offset by a higher tax rate.

For the first three months of the fiscal year, McKesson returned $609 million of cash to shareholders, which included $527 million of common stock repurchases and $82 million of dividend payments. During the first three months of the fiscal year, McKesson used cash from operations of $1.4 billion, a portion of which was used in support of onboarding new customers, and invested $167 million in capital expenditures, resulting in negative Free Cash Flow of $1.5 billion.

Dr. Deborah Dunsire joined McKesson's Board of Directors as an independent director and member of the Board of Director's Compensation and Talent Committee and Finance Committee, effective June 3, 2024.

McKesson maintains a disciplined approach to capital allocation, centered on delivering sustainable growth and long-term shareholder value. On July 31, 2024, the Board of Directors

Declared a 15% increase to its quarterly dividend from $0.62 per share to $0.71 per share, marking the eighth consecutive year of increases.

Approved the company to repurchase up to an additional $4.0 billion of its common shares to a total authorization of $9.9 billion as of July 2024.

McKesson was named by Forbes as one of America's Best Employers for Diversity in 2024.

U.S. Pharmaceutical Segment

Revenues were $71.7 billion, an increase of 7%, driven by increased prescription volumes, including higher volumes from specialty products, retail national account customers, and GLP-1 medications.

Segment Operating Profit was $781 million. Adjusted Segment Operating Profit was $815 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, flat to the prior year, driven by growth in the technology services business, offset by lower contributions from the third-party logistics business.

Segment Operating Profit was $203 million. Adjusted Segment Operating Profit of $223 million was unchanged compared to the prior year. Growth in affordability solutions was offset by lower contributions due to the mix of services within our access programs, and higher expenses to support future growth.

Medical-Surgical Solutions Segment

Revenues were $2.6 billion, an increase of 1%, driven by higher volumes of specialty pharmaceuticals, partially offset by lower volumes, customer mix, and product demand shifts in the primary care channel.

Segment Operating Profit was $188 million. Adjusted Segment Operating Profit was $200 million, a decrease of 15%, driven by lower volumes, customer mix, and product demand shifts across the primary care sites of care.

International Segment

Revenues were $3.7 billion, an increase of 6%, driven by higher pharmaceutical distribution volumes in the Canadian business.

Segment Operating Profit was $90 million. Adjusted Segment Operating Profit was $102 million, an increase of 13%, driven by higher pharmaceutical distribution volumes in the Canadian 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 2025 Adjusted Earnings per Diluted Share guidance to $31.75 to $32.55 from the previous range of $31.25 to $32.05.

Fiscal 2025 Adjusted Earnings per Diluted Share guidance includes approximately $0.62 related to year-to-date gains associated with McKesson's 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, August 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 Event

McKesson management will be participating in the following investor conference

Wells Fargo 2024 Healthcare Conference, September 5, 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, 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, and intentions 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 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 may be unsuccessful in our efforts to implement initiatives to reduce or optimize our costs we are impacted by customer purchase reductions, contract non-renewals, payment defaults, and bankruptcies 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 are adversely impacted by changes or disruptions in product supply and have had 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 events outside of our control, such as widespread public health issues, natural disasters, political events and other catastrophic events we may be adversely affected by global climate change or by legal, regulatory, or market responses to such change and governance issues and regulations, including those related to social issues, climate change, and sustainability, and stakeholder response thereto may have an adverse effect on our business, financial condition, and results of operations and damage our reputation.

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 2025 and 2024 as well as our

Annual Report on Form 10-K for fiscal 2024.

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.

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), 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

McKESSON CORPORATION

RECONCILIATION OF GAAP CASH FLOW TO FREE CASH FLOW (NON-GAAP)

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

For more information relating to the Free Cash Flow (Non-GAAP) definition, refer to the section entitled "Supplemental Non-GAAP Financial Information" of this release.

McKESSON CORPORATION

FINANCIAL STATEMENT NOTES