Slide 1: McKesson Corporation Third Quarter Fiscal 2025 Earnings Call
McKesson Corporation Third Quarter Fiscal 2025 Earnings Call February 5, 2025
Slide 2: Cautionary Statements
Cautionary Statements Cautionary Statements This presentation 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
Slide 3: Accelerating the Enterprise: Sustaining Long-Term Growth and Value
Accelerating the Enterprise Sustaining Long-Term Growth and Value • Integrity & Inclusion • Respect Our Purpose: • Customer-first • Excellence Advancing Health Outcomes for All® • Accountability Our Strategic Focus and Growth Pillars: Focus Strengthen Modernize Enhance Oncology on People North Ameri
Slide 4: Third Quarter Fiscal 2025 Results
Third Quarter Fiscal 2025 Results
Slide 5: Disciplined Execution Delivers Strong Performance
Disciplined Execution Delivers Strong Performance Business Summary Company Updates • Revenues of $95.3 billion increased 18% • Ms. Lynne Doughtie and Dr. Julie Gerberding joined McKesson’s Board of Directors on February 3, 2025 • Adjusted Operating Profit of $1.5 billion increased 16% • Signed a def
Slide 6: Consolidated adjusted financial information
Consolidated adjusted financial information Q3 and YTD Fiscal 2025 Results Adjusted Results Q3 YoY YTD Q3 YoY ($ and shares in millions, except per share amounts) FY 25 Change FY 25 Change GAAP Revenues $ 95,294 18 % $ 268,228 15 % Gross Profit $ 3,342 7% $ 9,648 6% Operating Expenses $ (1,948) 2% $
Slide 7: Adjusted Earnings Per Share Results
Adjusted Earnings Per Share Results Q3 Fiscal 2025 year-over-year $0.41 $(1.16) $0.09 $0.91 $0.04 $8.03 $7.74 Q3 FY24 Operating McKesson Ventures Diluted Weighted Tax Rate Other1 Q3 FY25 Performance Average Common Shares Adj. EPS Adj. EPS See endnotes for details 7 © 2025 McKesson Corporation. All r
Slide 8: U.S. Pharmaceutical
U.S. Pharmaceutical Q3 and YTD Fiscal 2025 Results Results Q3 YoY YTD Q3 YoY ($ in millions) FY 25 Change FY 25 Change U.S. Pharmaceutical Revenues $ 87,110 19 % $ 244,551 16 % Adjusted Segment Operating Profit $ 944 14 % $ 2,661 10 % Adjusted Segment Operating Profit Margin 1.08 % (5) bp 1.09 % (6)
Slide 9: Prescription Technology Solutions
Prescription Technology Solutions Q3 and YTD Fiscal 2025 Results Results Q3 YoY YTD Q3 YoY ($ in millions) FY 25 Change FY 25 Change Prescription Technology Solutions Revenues $ 1,371 14 % $ 3,877 8% Adjusted Segment Operating Profit $ 235 22 % $ 676 8% Adjusted Segment Operating Profit Margin 17.14
Slide 10: Medical-Surgical Solutions
Medical-Surgical Solutions Q3 and YTD Fiscal 2025 Results Results Q3 YoY YTD Q3 YoY ($ in millions) FY 25 Change FY 25 Change Medical-Surgical Solutions Revenues $ 2,949 (3) % $ 8,533 1% Adjusted Segment Operating Profit $ 294 4% $ 737 (4) % Adjusted Segment Operating Profit Margin 9.97 % 67 bp 8.64
Slide 11: International
International Q3 and YTD Fiscal 2025 Results Results Q3 YoY YTD Q3 YoY ($ in millions) FY 25 Change FY 25 Change International Revenues $ 3,860 6% $ 11,260 6% Adjusted Segment Operating Profit $ 124 18 % $ 326 15 % Adjusted Segment Operating Profit Margin 3.21 % 32 bp 2.90 % 22 bp Q3 revenue increas
Slide 12: Corporate
Corporate Q3 and YTD Fiscal 2025 Results Results Q3 YoY YTD Q3 YoY ($ in millions) FY 25 Change FY 25 Change Corporate Revenues $ 4 —% $ 7 —% Adjusted Corporate Expenses $ (134) (9) % $ (341) (25) % Q3 Adjusted Corporate Expenses decrease driven by pre-tax gains of $6 million associated with McKesso
Slide 13: Consistent cash flow + capital allocation driving shareholder value
Consistent cash flow + capital allocation driving shareholder value ($ in millions) $4,583 $337 $(2,000) $(581) $(3,100) $1,892 $1,131 YE Cash1 Operating Cash Timing Adjustment2 Capital Expenditures Share Repurchases Other3 Q3 Cash1 Flows Excluding + Dividends 3/31/24 Timing Adjustment 12/31/24 See
Slide 14: Fiscal 2025 Outlook
Fiscal 2025 Outlook On the following slides, McKesson presents an overview of its fiscal 2025 Outlook and assumptions. The company does not provide forward-looking guidance on a GAAP basis as McKesson is unable to provide a quantitative reconciliation of forward- looking Non-GAAP measures to the mos
Slide 15: Raising Fiscal 2025 Adjusted EPS outlook
Raising Fiscal 2025 Adjusted EPS outlook $32.55 to $32.95 Strong Business Performance Capital Deployment Fiscal 2025 Adjusted Operating Profit growth of 13% to Anticipate approximately $3.2 billion in share repurchases in 15% compared to the prior year Fiscal 2025 Fiscal 2025 Adjusted Earnings per D
Slide 16: Fiscal 2025 Adjusted EPS outlook
Fiscal 2025 Adjusted EPS outlook $32.55 to $32.95 19 to 20% growth $27.44 FY24 Operating McKesson Ventures Diluted Weighted Other1 FY25 Outlook Performance Average Common Shares Actual February 5, 2025 See endnotes for details 16 © 2025 McKesson Corporation. All rights reserved.
Slide 17: Fiscal 2025 adjusted outlook: consolidated metrics
Fiscal 2025 adjusted outlook Consolidated metrics Metric Fiscal 2025 Outlook Fiscal 2024 Actual Earnings per Diluted Share $32.55 to $32.95 $27.44 Previously $32.40 to $33.00 GAAP Revenues 16% to 18% growth 12% growth Previously 15% to 17% growth Operating Profit 13% to 15% growth 2% decline Corpora
Slide 18: Fiscal 2025 adjusted outlook: segment metrics
Fiscal 2025 adjusted outlook Segment metrics U.S. Pharmaceutical Prescription Technology Medical-Surgical International Solutions Solutions Revenue 18% to 20% growth 9% to 12% growth Flat 3% to 7% growth Previously 16% to 19% growth Previously 8% to 12% growth Previously 1% to 5% growth Previously 5
Slide 19: Appendix
Appendix
Slide 20: Endnotes
Endnotes These notes refer to the financial metrics and/or defined terms presented on: Slide 3 – Accelerating the Enterprise; Sustaining Long-Term Growth and Value 1. Long-Term EPS Target refers to Long-Term Adjusted EPS Growth which excludes gains or losses associated with McKesson Venture’s portfo
Slide 21: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation Q3 Fiscal 2025 and Q3 Fiscal 2024 McKESSON CORPORATION Schedule 2 RECONCILIATION OF GAAP OPERATING RESULTS TO ADJUSTED RESULTS (NON-GAAP) (unaudited) (in millions) Three Months Ended December 31, Nine Months Ended December 31, 2024 2023 Change 2024 2023 Change Net inc
Slide 22: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation Q3 Fiscal 2025 and Q3 Fiscal 2024 McKESSON CORPORATION Schedule 2 RECONCILIATION OF GAAP OPERATING RESULTS TO ADJUSTED RESULTS (NON-GAAP) (Continued) (unaudited) (in millions, except per share amounts) Three Months Ended December 31, Nine Months Ended December 31, 202
Slide 23: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation Q3 Fiscal 2025 and Q3 Fiscal 2024 McKESSON CORPORATION Schedule 2 RECONCILIATION OF GAAP OPERATING RESULTS TO ADJUSTED RESULTS (NON-GAAP) (Continued) (unaudited) (in millions) Three Months Ended December 31, Nine Months Ended December 31, 2024 2023 Change 2024 2023 Ch
Slide 24: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation Q3 Fiscal 2025 and Q3 Fiscal 2024 McKESSON CORPORATION Schedule 2 RECONCILIATION OF GAAP OPERATING RESULTS TO ADJUSTED RESULTS (NON-GAAP) (Continued) (unaudited) (in millions) Three Months Ended December 31, Nine Months Ended December 31, 2024 2023 Change 2024 2023 Ch
Slide 25: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation Q3 Fiscal 2025 and Q3 Fiscal 2024 McKESSON CORPORATION Schedule 2 RECONCILIATION OF GAAP OPERATING RESULTS TO ADJUSTED RESULTS (NON-GAAP) (Continued) (unaudited) (in millions, except per share amounts) (a) Certain computations may reflect rounding adjustments. Any per
Slide 26: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation Q3 Fiscal 2025 and Q3 Fiscal 2024 McKESSON CORPORATION Schedule 3 RECONCILIATION OF GAAP SEGMENT OPERATING RESULTS TO ADJUSTED RESULTS (NON-GAAP) (unaudited) (in millions) Three Months Ended December 31, 2024 2023 Change As reported As adjusted As reported As adjusted
Slide 27: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation Q3 Fiscal 2025 and Q3 Fiscal 2024 McKESSON CORPORATION Schedule 3 RECONCILIATION OF GAAP SEGMENT OPERATING RESULTS TO ADJUSTED RESULTS (NON-GAAP) (Continued) (unaudited) (in millions) Nine Months Ended December 31, 2024 2023 Change As reported As adjusted As reported
Slide 28: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation Q3 Fiscal 2025 and Q3 Fiscal 2024 McKESSON CORPORATION Schedule 6 RECONCILIATION OF GAAP CASH FLOW TO FREE CASH FLOW (NON-GAAP) (unaudited) (in millions) Nine Months Ended December 31, 2024 2023 Change GAAP CASH FLOW CATEGORIES Net cash provided by (used in) operating
Slide 29: Financial Statement Notes
Financial Statement Notes McKESSON CORPORATION FINANCIAL STATEMENT NOTES 1 of 2 1. Transaction-related expenses and adjustments for the three and nine months ended December 31, 2024 includes a net loss of $23 million (pre-tax and after-tax) and $666 million (pre-tax and after-tax), respectively, to
Slide 30: Financial Statement Notes
Financial Statement Notes FINANCIAL STATEMENT NOTES (continued) 2 of 2 5. Other adjustments, net for the nine months ended December 31, 2024 includes a pre-tax credit of $203 million ($150 million after-tax), and for the three and nine months ended December 31, 2023 includes pre-tax charges of $515
Slide 31: Supplemental Non-GAAP Financial Information
Supplemental Non-GAAP Financial Information McKESSON CORPORATION 1 of 3 SUPPLEMENTAL NON-GAAP FINANCIAL INFORMATION In an effort to provide investors with additional information regarding the Company's financial results as determined by generally accepted accounting principles ("GAAP"), McKesson Cor
Slide 32: Supplemental Non-GAAP Financial Information
Supplemental Non-GAAP Financial Information SUPPLEMENTAL NON-GAAP FINANCIAL INFORMATION (continued) 2 of 3 • Adjusted Segment Operating Profit (Non-GAAP) and Adjusted Segment Operating Profit Margin (Non-GAAP): We define Adjusted Segment Operating Profit as GAAP segment operating profit, excluding a
Slide 33: Supplemental Non-GAAP Financial Information
Supplemental Non-GAAP Financial Information SUPPLEMENTAL NON-GAAP FINANCIAL INFORMATION (continued) 3 of 3 Other adjustments - The Company evaluates the nature and significance of transactions qualitatively and quantitatively on an individual basis and may include them in the determination of our ad