McKESSON CORPORATION REPORTS FISCAL 2026

McKESSON CORPORATION REPORTS FISCAL 2026 SECOND QUARTER RESULTS

AND RAISES FULL YEAR ADJUSTED EPS GUIDANCE

IRVING, Texas, November 5, 2025 - McKesson Corporation (NYSE MCK) today announced results for the second quarter ended September 30, 2025.

Second Quarter Highlights

Quarterly consolidated revenues increased to a record high of $103.2 billion, an increase of 10% compared to the prior year.

Earnings per diluted share of $8.92 increased $7.05.

Adjusted Earnings per Diluted Share of $9.86 increased 39%.

Generated $2.4 billion of cash flow from operations and $2.2 billion of Free Cash Flow.

Fiscal 2026 Full Year Outlook

Raised Adjusted Earnings per Diluted Share guidance range to $38.35 to $38.85, from the previous range of $38.05 to $38.55.

Fiscal 2026 Adjusted Earnings per Diluted Share guidance range indicates 16% to 18% growth compared to the prior year.

The Company does not forecast GAAP earnings per diluted share1.

McKesson's second quarter results underscore the strength of our differentiated assets, capabilities, and continued momentum as a diversified healthcare services leader. We delivered record revenue in the quarter of $103 billion, increasing 10% and Adjusted Earnings per Diluted Share accelerating 39% compared to the prior year. These results reflect disciplined execution of our enterprise strategy - advancing growth in oncology and multispecialty and biopharma services. We remain confident in our ability to create value for our customers, partners, employees, and shareholders, said Brian Tyler, chief executive officer.

These achievements reflect the dedication of McKesson employees and their unwavering commitment to delivering measurable value to all stakeholders. Our strategic focus in our growth pillars of oncology and multispecialty and biopharma services, combined with disciplined execution, continues to drive sustainable long-term growth. Following our strong first half performance, sustained momentum across our portfolio, and confidence in the outlook for the remainder of the year, we are raising our fiscal 2026 Adjusted Earnings per Diluted Share guidance by $0.30 to a range of $38.35 to $38.85. This builds on the $0.80 increase announced at Investor Day in September 2025.

Fiscal 2026 Second Quarter Result Summary

Second quarter revenues were $103.2 billion, an increase of 10% from a year ago, driven by growth in the North American Pharmaceutical segment, due to increased prescription volumes from retail national account customers, and growth in the distribution of oncology and multispecialty products including contributions from acquisitions in the Oncology Multispecialty segment.

Second quarter earnings per diluted share was $8.92 compared to $1.87 a year ago, an increase of $7.05, primarily due to a prior year charge of $643 million for the fair value remeasurement of assets and liabilities related to McKesson's agreement to sell its Canadian retail businesses and a prior year charge of $227 million related to business rationalization initiatives.

Second quarter Adjusted Earnings per Diluted Share was $9.86 compared to $7.07 a year ago, an increase of 39%, driven by strong operational growth across the business, including contributions from acquisitions, net gains in the Oncology Multispecialty segment from the sale of an investment and market decisions within The US Oncology Network, and a lower tax rate.

During the three months ended September 30, 2025, McKesson generated cash flow from operations of $2.4 billion, and invested $196 million in capital expenditures, resulting in Free Cash Flow of $2.2 billion. During the first six months of the fiscal year, McKesson generated cash from operations of $1.5 billion, and invested $385 million in capital expenditures, resulting in Free Cash Flow of $1.1 billion.

For the first six months of the fiscal year, McKesson returned $1.6 billion of cash to shareholders, which included $1.4 billion of common stock repurchases and $179 million of dividend payments.

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

On September 18, 2025, McKesson announced changes to its reportable segments and organizational structure, effective in the second quarter of fiscal 2026. The new reporting structure enhances strategic alignment and transparency and optimizes portfolio management.

On September 23, 2025, McKesson hosted an Investor Day where management highlighted progress against the company's growth strategies, including updated and increased long-term financial targets.

McKesson continued to advance and expand its oncology and multispecialty platform. On October 31, 2025, PRISM Vision Group expanded its footprint beyond the mid-Atlantic region with the addition of Spokane Eye Clinic, located in Spokane, Washington.

North American Pharmaceutical Segment

Revenues were $86.5 billion, an increase of 8%, driven by increased prescription transaction volumes, including higher volumes from retail national account customers and specialty products.

Segment Operating Profit was $852 million. Adjusted Segment Operating Profit was $851 million, an increase of 13%, driven by growth in the distribution of specialty products to health systems and the impact of new product launches.

Oncology Multispecialty Segment

Revenues were $12.0 billion, an increase of 32%, driven by increased provider and specialty distribution growth and contributions from acquisitions.

Segment Operating Profit was $332 million. Adjusted Segment Operating Profit was $397 million, an increase of 71%, driven by increased provider and specialty distribution growth, contributions from acquisitions, and net gains from the sale of an investment and market decisions within The US Oncology Network.

Prescription Technology Solutions Segment

Revenues were $1.4 billion, an increase of 9%, driven by increased prescription volumes in the third-party logistics and technology services businesses.

Segment Operating Profit was $244 million. Adjusted Segment Operating Profit was $261 million, an increase of 20%, driven by higher demand for access solutions.

Medical-Surgical Solutions Segment

Revenues were $2.9 billion, flat to the prior year, driven by higher volumes of specialty pharmaceuticals, offset by lower contributions from illness season products and testing.

Segment Operating Profit was $220 million. Adjusted Segment Operating Profit was $249 million, an increase of 2%, driven by operational efficiencies from cost optimization initiatives, partially offset by lower contributions from illness season products and testing.

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 by $0.30 to a range of $38.35 to $38.85 from $38.05 to $38.55. This builds on the $0.80 increase announced at Investor Day in September 2025.

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

Conference Call Details

McKesson has scheduled a conference call for today, Wednesday, November 5, 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 Events

McKesson management will be participating in the following investor events

UBS Global Healthcare Conference, November 10, 2025

Evercore HealthCONx Conference, December 4, 2025

J.P. Morgan Healthcare Conference, January 12-15, 2026

The audio webcasts, 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. Any discussion of our intent to separate our Medical-Surgical Solutions segment into an independent company and to sell our business 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 and policies 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 funding, payment 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.

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), 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