McKESSON CORPORATION REPORTS FISCAL 2026

McKESSON CORPORATION REPORTS FISCAL 2026 THIRD QUARTER RESULTS

AND RAISES FULL YEAR ADJUSTED EPS GUIDANCE

IRVING, Texas, February 4, 2026 - McKesson Corporation (NYSE MCK) today announced results for the third quarter ended December 31, 2025.

Third Quarter Highlights

Quarterly consolidated revenues of $106.2 billion increased 11%.

Earnings per diluted share of $9.59 increased $2.64.

Adjusted Earnings per Diluted Share of $9.34 increased 16%.

Generated $1.2 billion of cash flow from operations and $1.1 billion of Free Cash Flow.

McKesson closed the transaction to sell its Norwegian retail and distribution businesses to NorgesGruppen on January 30, 2026.

Fiscal 2026 Full Year Outlook

Raised and narrowed Adjusted Earnings per Diluted Share guidance range to $38.80 to $39.20, from the previous range of $38.35 to $38.85.

Fiscal 2026 Adjusted Earnings per Diluted Share guidance range indicates 17% to 19% growth compared to the prior year.

The Company does not forecast GAAP earnings per diluted share1.

McKesson delivered another strong quarter, extending the momentum we've built across the enterprise and demonstrating the impact of our disciplined execution, said Brian Tyler, chief executive officer. Our results highlight the strength of our core distribution businesses and the meaningful progress we are making against our strategic priorities.

Our oncology and multispecialty platforms, together with our expanding suite of biopharma services programs, continue to create differentiated value and deepen the impact for our customers, partners, and patients. The completion of the divestiture of our Norwegian businesses fulfills our commitment to exit Europe. We remain focused on advancing a strategy to continue delivering sustainable growth and long-term value creation.

As a result of our third quarter performance and operating momentum, we are raising and narrowing our guidance range for fiscal 2026 Adjusted Earnings per Diluted Share to $38.80 to $39.20. These strong outcomes reflect the power of our platforms and the dedication and commitment of Team McKesson, whose focus enables us to execute consistently and deliver high-quality results.

Fiscal 2026 Third Quarter Result Summary

Third quarter revenues were $106.2 billion, an increase of 11% 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.

Third quarter earnings per diluted share was $9.59 compared to $6.95 a year ago, an increase of $2.64, which includes a pre-tax credit within the North American Pharmaceutical segment related to the Rite Aid bankruptcy.

Third quarter Adjusted Earnings per Diluted Share was $9.34 compared to $8.03 a year ago, an increase of 16%, driven by strong operational growth, including contributions from acquisitions in the Oncology Multispecialty segment.

During the three months ended December 31, 2025, McKesson generated cash flow from operations of $1.2 billion, and invested $175 million in capital expenditures, resulting in Free Cash Flow of $1.1 billion. During the first nine months of the fiscal year, McKesson generated cash from operations of $2.7 billion, and invested $560 million in capital expenditures, resulting in Free Cash Flow of $2.2 billion.

For the first nine months of the fiscal year, McKesson returned $2.4 billion of cash to shareholders, which included $2.1 billion of common stock repurchases and $280 million of dividend payments.

On January 1, 2026, McKesson advanced its planned separation of the Medical-Surgical Solutions segment by implementing transition service agreements to support the business as it prepares to be an independent company.

On January 30, 2026, McKesson closed the transaction to sell its retail and distribution businesses in Norway, representing the final phase to fully exit its European operations.

In January, McKesson's Health Mart was honored with the prestigious H.A.B. Dunning Award from the American Pharmacists Association, recognizing outstanding contributions to advancing the profession and supporting community pharmacies nationwide.

North American Pharmaceutical Segment

Revenues were $88.3 billion, an increase of 9%, driven by increased prescription transaction volumes, including higher volumes from retail national account customers and specialty products.

Segment Operating Profit was $1.1 billion. Adjusted Segment Operating Profit was $872 million, an increase of 6%, driven by growth in the distribution of specialty products to health systems.

Oncology Multispecialty Segment

Revenues were $13.0 billion, an increase of 37%, driven by growth in provider solutions and specialty distribution, including contributions from acquisitions.

Segment Operating Profit was $304 million. Adjusted Segment Operating Profit was $366 million, an increase of 57%, driven by growth in provider solutions and specialty distribution, including contributions from acquisitions.

Prescription Technology Solutions Segment

Revenues were $1.5 billion, an increase of 9%, driven by increased prescription volumes in the third-party logistics and technology services businesses.

Segment Operating Profit was $261 million. Adjusted Segment Operating Profit was $277 million, an increase of 18%, driven by higher demand for access solutions.

Medical-Surgical Solutions Segment

Revenues were $3.0 billion, an increase of 1%, driven by higher volumes of specialty pharmaceuticals.

Segment Operating Profit was $265 million. Adjusted Segment Operating Profit was $265 million, a decrease of 10%, driven by lower volumes across physician office settings and lower incidence of illness for the season.

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 and narrowing its fiscal 2026 Adjusted Earnings per Diluted Share guidance to $38.80 to $39.20 from the previous range of $38.35 to $38.85.

Fiscal 2026 Adjusted Earnings per Diluted Share guidance includes $0.09 related to year-to-date gains 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 4, 2026, 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

Leerink Partners Global Healthcare Conference, March 8-11, 2026

Barclays Global Healthcare Conference, March 10-12, 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, 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