McKESSON CORPORATION REPORTS FISCAL 2026

McKESSON CORPORATION REPORTS FISCAL 2026 FIRST QUARTER RESULTS

AND RAISES FULL YEAR ADJUSTED EPS GUIDANCE

IRVING, Texas, August 6, 2025 - McKesson Corporation (NYSE MCK) today announced results for the first quarter ended June 30, 2025.

First Quarter Highlights

Consolidated revenues of $97.8 billion increased 23%.

Earnings per diluted share of $6.25 decreased $0.75.

Adjusted Earnings per Diluted Share of $8.26 increased 5%.

McKesson completed the transactions to acquire controlling interests in PRISM Vision Holdings, LLC and Core Ventures.

McKesson's Board of Directors approved a 15% increase to the quarterly dividend, to $0.82 per share. This marks the ninth consecutive year of dividend increases.

Adjusted Earnings per Diluted Share guidance range raised to $37.10 to $37.90, from the previous range of $36.90 to $37.70.

Fiscal 2026 Adjusted Earnings per Diluted Share guidance range indicates 12% to 15% growth compared to the prior year. Excluding fiscal 2025 net gains associated with McKesson Ventures' equity investments, the guidance range indicates 14% to 17% growth.

The Company does not forecast GAAP earnings per diluted share1.

McKesson had a standout quarter with momentum and growth across the enterprise, said Brian Tyler, chief executive officer. We continue to execute against our strategy, delivering for our customers, partners, and patients. Our strong first quarter results included record revenue of $97.8 billion, representing 23% growth compared to the previous year. In addition, we closed the acquisitions of PRISM Vision Holdings and Core Ventures, further expanding our differentiated capabilities in Oncology and Specialty solutions. As a result of the strong first quarter performance and our confidence in the outlook for the remainder of the year, which includes the announced sale of our Norwegian businesses, we are raising our fiscal 2026 Adjusted Earnings per Diluted Share guidance to a range of $37.10 to $37.90.

I want to thank our employees for their unwavering dedication and commitment. Their execution and shared focus on our mission have been instrumental in driving performance and creating sustainable value for our stakeholders.

Fiscal 2026 First Quarter Result Summary

First quarter revenues were $97.8 billion, an increase of 23% from a year ago, primarily driven by growth in the U.S. Pharmaceutical segment due to increased prescription volumes from retail national account customers and growth in the distribution of oncology and specialty products, including contributions from acquisitions.

First quarter earnings per diluted share was $6.25 compared to $7.00 a year ago, a decrease of $0.75, due to a pre-tax increase to the provision for bad debts of $189 million within the U.S. Pharmaceutical segment related to the Rite Aid bankruptcy.

First quarter Adjusted Earnings per Diluted Share was $8.26 compared to $7.88 a year ago, an increase of 5%, driven by strong operational growth across the business, partially offset by a higher tax rate and pre-tax gains of $110 million in the first quarter of fiscal 2025 associated with McKesson Ventures' equity investments.

For the first three months of the fiscal year, McKesson returned $671 million of cash to shareholders, which included $581 million of common stock repurchases and $90 million of dividend payments. During the first three months of the fiscal year, McKesson used cash from operations of $918 million, and invested $189 million in capital expenditures, resulting in negative Free Cash Flow of $1.1 billion. McKesson also used $3.4 billion of cash towards acquisitions during the quarter.

On April 1, 2025, McKesson completed the acquisition of an 80% controlling interest in PRISM Vision Holdings, LLC, a leading provider in general ophthalmology and retina management services.

On June 2, 2025, McKesson completed the acquisition of a 70% controlling interest in Core Ventures, a business and administrative services organization established by Florida Cancer Specialists Research Institute, LLC (FCS). FCS joined The US Oncology Network, growing its total number of providers to approximately 3,300.

On July 29, 2025, the Board of Directors declared a 15% increase to its quarterly dividend from $0.71 per share to $0.82 per share, marking the ninth consecutive year of increases.

On August 4, 2025, McKesson entered into a definitive agreement to sell its retail and distribution businesses in Norway to NorgesGruppen. The transaction is subject to customary closing conditions, including receipt of required regulatory approvals.

U.S. Pharmaceutical Segment

Revenues were $90.0 billion, an increase of 25%, driven by increased prescription volumes from retail national account customers and growth in the distribution of oncology and specialty products, including contributions from acquisitions.

Segment Operating Profit was $727 million. Adjusted Segment Operating Profit was $950 million, an increase of 17%, driven by growth in core pharmaceutical distribution, including higher volumes from retail national account customers, and growth in the distribution of oncology and specialty products, including contributions from acquisitions.

Prescription Technology Solutions Segment

Revenues were $1.4 billion, an increase of 16%, driven by increased prescription volumes in the third-party logistics and technology services businesses.

Segment Operating Profit was $253 million. Adjusted Segment Operating Profit was $269 million, an increase of 21%, driven by higher demand for access solutions.

Medical-Surgical Solutions Segment

Revenues were $2.7 billion, an increase of 2%, driven by higher volumes of specialty pharmaceuticals.

Segment Operating Profit was $221 million. Adjusted Segment Operating Profit was $244 million, an increase of 22%, led by operational efficiencies from cost optimization initiatives.

International Segment

Revenues were $3.7 billion, an increase of 1%, driven by higher pharmaceutical distribution volumes in the Canadian business, partially offset by the divestiture of the Canada-based Rexall and Well.ca retail businesses.

Segment Operating Profit was $92 million. Adjusted Segment Operating Profit was $99 million, a decrease of 3%, a result of the fiscal 2025 divestiture of the Canada-based Rexall and Well.ca retail businesses, partially offset 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 its fiscal 2026 Adjusted Earnings per Diluted Share guidance to $37.10 to $37.90 from the previous range of $36.90 to $37.70. The updated guidance range includes approximately $0.20 of Adjusted Earnings per Diluted Share accretion as a result of the anticipated held-for-sale accounting related to the agreement to sell its retail and distribution businesses in Norway to NorgesGruppen.

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

Conference Call Details

McKesson has scheduled a conference call for today, Wednesday, August 6, 2025, 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 Investor Day

McKesson will host its Investor Day on Tuesday, September 23, 2025. The event will feature presentations by McKesson's leadership team and a live Q A session with chief executive officer Brian Tyler and chief financial officer Britt Vitalone. The video webcast and additional details 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. Any discussion of our intent to separate our Medical-Surgical Solutions segment into an independent company and to sell our businesses in Norway, other anticipated or completed transactions, including the anticipated closings thereof, or synergies expected therefrom, litigation outcomes, 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 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 experience significant problems with information systems or networks 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 might be unable to successfully complete or integrate acquisitions or other strategic transactions, especially in the timeframes noted we may not receive anticipated benefits from acquisitions or other strategic transactions we might be adversely impacted by delays or other difficulties with divestitures 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 risks and limitations that could impede the growth of our data services business we might be unable to successfully recruit and retain qualified employees 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 difficulties in sourcing or selling products due to a variety of causes we are adversely impacted as a result of our distribution of generic pharmaceuticals we are 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 conditions and events outside of our control, such as widespread public health issues, natural disasters, and geopolitical factors we may be adversely affected by global climate change or by regulatory or market responses to such change and evolving expectations and regulatory requirements related to governance and sustainability matters, including those concerning human capital management, climate change, environmental responsibility, and social impact 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 Stories Insights.

We routinely use our website, investors.mckesson.com, to post information that may be material to investors, such as business developments, earnings, and financial performance, as well as presentation materials and details for upcoming and past events.

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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 2026 and 2025 as well as our

Annual Report on Form 10-K for fiscal 2025.

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

(1)Restructuring, impairment, and related charges, net for the three months ended June 30, 2025 includes pre-tax charges of $47 million ($35 million after-tax), primarily within Medical-Surgical Solutions and Corporate Expenses, net. The three months ended June 30, 2024 includes pre-tax charges of $10 million ($8 million after-tax), primarily within Medical-Surgical Solutions and Prescription Technology Solutions. These charges are included under total operating expenses in the reconciliation of McKesson's GAAP operating results to adjusted results (Non-GAAP) provided in Schedule 2 of the accompanying financial statement tables.

(2)Claims and litigation charges, net for the three months ended June 30, 2024 includes pre-tax charges of $114 million ($86 million after-tax) related to our estimated liability for opioid-related claims of a nationwide group of certain third-party payors. We recorded charges of $57 million ($43 million after-tax) within Corporate expenses, net and $57 million ($43 million after-tax) within U.S. Pharmaceutical. These charges are included under total operating expenses in the reconciliation of McKesson's GAAP operating results to adjusted results (Non-GAAP) provided in Schedule 2 of the accompanying financial statement tables.

(3)Other adjustments, net for the three months ended June 30, 2025 includes a pre-tax provision for bad debts of $189 million ($140 million after-tax) within U.S. Pharmaceutical related to the bankruptcy of our customer, Rite Aid Corporation (including certain of its subsidiaries, Rite Aid ). Management believes this charge is not reflective of allowances recorded in the normal course of business operations and is related to Rite Aid's continued bankruptcy proceedings, and is therefore excluded from the determination of our adjusted results (Non-GAAP). This charge represents the remaining trade accounts receivable balances due from Rite Aid prior to its bankruptcy petition filing and is included under total operating expenses in the reconciliation of McKesson's GAAP operating results to adjusted results (Non-GAAP) provided in Schedule 2 of the accompanying financial statement tables.

(4)Other adjustments, net for the three months ended June 30, 2024 includes a pre-tax charge of $43 million ($31 million after-tax) within U.S. Pharmaceutical related to a loss from one of the Company's investments in equity securities. This charge is included under other income, net in the reconciliation of McKesson's GAAP operating results to adjusted results (Non-GAAP) provided in Schedule 2 of the accompanying financial statement tables.