Slide 1: McKesson Corporation Second Quarter Fiscal 2026 Earnings Call
McKesson Corporation Second Quarter Fiscal 2026 Earnings Call November 5, 2025 1 © 2021 McKesson Corporation. All rights reserved.
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 Long-Term Growth and Value Creation
Accelerating Long-Term Growth and Value Creation Our Company Priorities Grow Strengthen Focus Oncology & Modernize On People North Multispecialty & Accelerate and Culture American and Biopharma the Portfolio Distribution Platforms Organic Growth Operating Leverage Capital Allocation 13% to 16% Long-
Slide 4: Second Quarter Fiscal 2026 Results
Second Quarter Fiscal 2026 Results 4 © 2021 McKesson Corporation. All rights reserved.
Slide 5: Second Quarter Highlights
SECOND QUARTER FISCAL 2026 RESULTS Second Quarter Highlights Q2 RECORD QUARTERLY REVENUE Company Updates $103.2B 10% • Entered into a definitive agreement to sell its retail and distribution businesses in Norway1 • Announced changes to its reportable segments and Q2 ADJUSTED EARNINGS PER organizatio
Slide 6: Consolidated Adjusted Financial Information
SECOND QUARTER FISCAL 2026 RESULTS Consolidated Adjusted Financial Information Q2 Fiscal 2026 Results Adjusted Results Q2 YoY YTD YoY ($ and shares in millions, except per share amounts) FY 26 Change FY 26 Change GAAP revenues $ 103,150 10 % $ 200,977 16 % Gross Profit $ 3,534 9% $ 6,798 8% Operatin
Slide 7: Adjusted Earnings Per Share Results
SECOND QUARTER FISCAL 2026 RESULTS Adjusted Earnings Per Share Results Q2 Fiscal 2026 year-over-year $0.37 $(0.12) $9.86 $0.59 $1.84 $0.11 $7.07 Q2 FY25 Operating McKesson Ventures Tax Rate Diluted Weighted Other1 Q2 FY26 Performance Average Common Shares Adj. EPS Adj. EPS See endnotes for details 7
Slide 8: North American Pharmaceutical
SECOND QUARTER FISCAL 2026 RESULTS North American Pharmaceutical Results Q2 YoY YTD YoY ($ in millions) FY 26 Change FY 26 Change North American Pharmaceutical Revenues $ 86,481 8 % $ 169,210 16 % Adjusted Segment Operating Profit $ 851 13 % $ 1,600 11 % Adjusted Segment Operating Profit Margin 0.98
Slide 9: Oncology & Multispecialty
SECOND QUARTER FISCAL 2026 RESULTS Oncology & Multispecialty Results Q2 YoY YTD YoY ($ in millions) FY 26 Change FY 26 Change Oncology & Multispecialty Revenues $ 12,044 32 % $ 22,702 27 % Adjusted Segment Operating Profit $ 397 71 % $ 684 52 % Adjusted Segment Operating Profit Margin 3.30 % 77 bp 3
Slide 10: Prescription Technology Solutions
SECOND QUARTER FISCAL 2026 RESULTS Prescription Technology Solutions Results Q2 YoY YTD YoY ($ in millions) FY 26 Change FY 26 Change Prescription Technology Solutions Revenues $ 1,376 9% $ 2,810 12 % Adjusted Segment Operating Profit $ 261 20 % $ 530 20 % Adjusted Segment Operating Profit Margin 18
Slide 11: Medical-Surgical Solutions
SECOND QUARTER FISCAL 2026 RESULTS Medical-Surgical Solutions Results Q2 YoY YTD YoY ($ in millions) FY 26 Change FY 26 Change Medical-Surgical Solutions Revenues $ 2,947 —% $ 5,648 1% Adjusted Segment Operating Profit $ 249 2% $ 493 11 % Adjusted Segment Operating Profit Margin 8.45 % 20 bp 8.73 %
Slide 12: Corporate
SECOND QUARTER FISCAL 2026 RESULTS Corporate Results Q2 YoY YTD YoY ($ in millions) FY 26 Change FY 26 Change Corporate Adjusted Corporate Expenses $ (151) (11) % $ (289) 41 % Q2 Adjusted Corporate Expenses decrease driven by pre-tax gains of $3 million associated with McKesson Ventures’ equity inve
Slide 13: Operating Profit Growth + Efficient Working Capital Drives Cash Flow and Shareholder Value
SECOND QUARTER FISCAL 2026 RESULTS Operating Profit Growth + Efficient Working Capital Drives Cash Flow and Shareholder Value ($ in millions) $2,420 $(196) $(907) $269 $4,004 $2,418 Q1 Cash1 Operating Cash Flow Capital Expenditures Share Repurchases Other2 Q2 Cash1 + Dividends 6/30/25 9/30/25 See en
Slide 14: Fiscal 2026 Outlook
Fiscal 2026 Outlook On the following slides, McKesson presents an overview of its fiscal 2026 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 most
Slide 15: Fiscal 2026 Adjusted Outlook
FISCAL 2026 ADJUSTED OUTLOOK Fiscal 2026 Adjusted EPS Outlook $38.35 to $38.85 Strong Business Performance Capital Deployment Anticipate Fiscal 2026 Adjusted Operating Profit growth of Anticipate approximately $2.5 billion in share repurchases in 12% to 16% compared to prior year Fiscal 2026 Fiscal
Slide 16: Raising Fiscal 2026 Adjusted EPS Outlook
FISCAL 2026 ADJUSTED OUTLOOK Raising Fiscal 2026 Adjusted EPS Outlook $38.35 to $38.85 16% to 18% growth $33.05 FY25 Operating McKesson Ventures Other1 FY26 Performance Actual Outlook See endnotes for details 16 © 2025 McKesson Corporation. All rights reserved.
Slide 17: Consolidated Metrics
FISCAL 2026 ADJUSTED OUTLOOK Consolidated Metrics Metric Fiscal 2026 Outlook Fiscal 2025 Actual Earnings per Diluted Share $38.35 to $38.85 $33.05 Previously $38.05 to $38.55 GAAP revenues 11% to 15% growth 16% growth Operating Profit 12% to 16% growth 15% growth Previously 10% to 14% growth Corpora
Slide 18: Segment Metrics
FISCAL 2026 ADJUSTED OUTLOOK Segment Metrics ADJUSTED REVENUE OPERATING PROFIT North American Pharmaceutical 10% to 14% growth 5% to 9% growth Previously 3% to 7% growth Oncology & Multispecialty 27% to 31% growth 49% to 53% growth Prescription Technology Solutions 9% to 13% growth 13% to 17% growth
Slide 19: Endnotes
Endnotes These notes refer to the financial metrics and/or defined terms presented on: Slide 3 – Accelerating Long-Term Growth and Value Creation 1. Long-Term Adjusted EPS Growth Target refers to Long-Term Adjusted EPS Growth which excludes gains or losses associated with McKesson Venture’s portfoli
Slide 20: Appendix
Appendix 20 © 2021 McKesson Corporation. All rights reserved.
Slide 21: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation Q2 Fiscal 2026 and Q2 Fiscal 2025 McKESSON CORPORATION Schedule 2 RECONCILIATION OF GAAP OPERATING RESULTS TO ADJUSTED RESULTS (NON-GAAP) (unaudited) (in millions) Three Months Ended September 30, Six Months Ended September 30, 2025 2024 Change 2025 2024 Change Net in
Slide 22: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation Q2 Fiscal 2026 and Q2 Fiscal 2025 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 September 30, Six Months Ended September 30, 20
Slide 23: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation Q2 Fiscal 2026 and Q2 Fiscal 2025 McKESSON CORPORATION RECONCILIATION OF GAAP OPERATING RESULTS TO ADJUSTED RESULTS (NON-GAAP) Schedule 2 (unaudited) (Continued) (in millions) Three Months Ended September 30, Six Months Ended September 30, 2025 2024 Change 2025 2024 C
Slide 24: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation Q2 Fiscal 2026 and Q2 Fiscal 2025 McKESSON CORPORATION Schedule 2 RECONCILIATION OF GAAP OPERATING RESULTS TO ADJUSTED RESULTS (NON-GAAP) (Continued) (unaudited) (in millions) Three Months Ended September 30, Six Months Ended September 30, 2025 2024 Change 2025 2024 C
Slide 25: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation Q2 Fiscal 2026 and Q2 Fiscal 2025 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 Q2 Fiscal 2026 and Q2 Fiscal 2025 McKESSON CORPORATION RECONCILIATION OF GAAP SEGMENT OPERATING RESULTS TO ADJUSTED RESULTS (NON-GAAP) Schedule 3 (unaudited) (in millions) Three Months Ended September 30, 2025 2024 Change As reported As adjusted As reported As adjuste
Slide 27: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation Q2 Fiscal 2026 and Q2 Fiscal 2025 McKESSON CORPORATION RECONCILIATION OF GAAP SEGMENT OPERATING RESULTS TO ADJUSTED RESULTS (NON-GAAP) Schedule 3 (unaudited) (Continued) (in millions) Six Months Ended September 30, 2025 2024 Change As reported As adjusted As reported
Slide 28: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation Q2 Fiscal 2026 and Q2 Fiscal 2025 McKESSON CORPORATION Schedule 6 RECONCILIATION OF GAAP CASH FLOW TO FREE CASH FLOW (NON-GAAP) (unaudited) (in millions) Three Months Ended September 30, (1) Six Months Ended September 30, 2025 2025 2024 Change GAAP CASH FLOW CATEGORIE
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 six months ended September 30, 2024 includes a net loss of $643 million (pre-tax and after-tax), to remeasure assets and liabilities held for sale to fair
Slide 30: Financial Statement Notes
Financial Statement Notes FINANCIAL STATEMENT NOTES (continued) 2 of 2 6. During the six months ended September 30, 2024, the Company recognized a pre-tax net gain of $100 million ($74 million after-tax) within Corporate expenses, net related to a recapitalization event of one of our investments in
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