Slide 1: McKesson Corporation Fiscal 2025 Financial Results
McKesson Corporation Fiscal 2025 Financial Results Fiscal 2026 Outlook May 8, 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
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: Fourth Quarter Fiscal 2025 Results
Fourth Quarter Fiscal 2025 Results
Slide 5: Disciplined execution leading to strong performance
Disciplined execution leading to strong performance Business Summary Company Updates • Fiscal 2025 revenues of $359.1 billion increased 16% • Announced its intention to separate its Medical-Surgical Solutions segment into an independent company (“NewCo”). The separation • Earnings per Diluted Share
Slide 6: Consolidated adjusted financial information
Consolidated adjusted financial information Q4 and Full Year Fiscal 2025 Results Adjusted Results Q4 YoY Full Year YoY ($ and shares in millions, except per share amounts) FY 25 Change FY 25 Change GAAP Revenues $ 90,823 19 % $ 359,051 16 % Gross Profit $ 3,388 2% $ 13,036 5% Operating Expenses $ (1
Slide 7: Adjusted Earnings Per Share Results
Adjusted Earnings Per Share Results Fiscal 2025 year-over-year $0.46 $(0.28) $33.05 $1.47 $0.72 $3.24 $27.44 FY24 Operating McKesson Ventures Diluted Weighted Tax Rate Other1 FY25 Performance Average Common Shares Adj. EPS Adj. EPS See endnotes for details 7 © 2025 McKesson Corporation. All rights r
Slide 8: U.S. Pharmaceutical
U.S. Pharmaceutical Q4 and Full Year Fiscal 2025 Results Results Q4 YoY Full Year YoY ($ in millions) FY 25 Change FY 25 Change U.S. Pharmaceutical Revenues $ 83,166 21 % $ 327,717 18 % Adjusted Segment Operating Profit $ 1,052 17 % $ 3,713 12 % Adjusted Segment Operating Profit Margin 1.26 % (5) bp
Slide 9: Prescription Technology Solutions
Prescription Technology Solutions Q4 and Full Year Fiscal 2025 Results Results Q4 YoY Full Year YoY ($ in millions) FY 25 Change FY 25 Change Prescription Technology Solutions Revenues $ 1,339 13 % $ 5,216 9% Adjusted Segment Operating Profit $ 285 34 % $ 961 15 % Adjusted Segment Operating Profit M
Slide 10: Medical-Surgical Solutions
Medical-Surgical Solutions Q4 and Full Year Fiscal 2025 Results Results Q4 YoY Full Year YoY ($ in millions) FY 25 Change FY 25 Change Medical-Surgical Solutions Revenues $ 2,853 1% $ 11,386 1% Adjusted Segment Operating Profit $ 285 15 % $ 1,022 —% Adjusted Segment Operating Profit Margin 9.99 % 12
Slide 11: International
International Q4 and Full Year Fiscal 2025 Results Results Q4 YoY Full Year YoY ($ in millions) FY 25 Change FY 25 Change International Revenues $ 3,461 (2) % $ 14,721 4% Adjusted Segment Operating Profit $ 102 9% $ 428 13 % Adjusted Segment Operating Profit Margin 2.95 % 30 bp 2.91 % 23 bp Q4 reven
Slide 12: Corporate
Corporate Q4 and Full Year Fiscal 2025 Results Results Q4 YoY Full Year YoY ($ in millions) FY 25 Change FY 25 Change Corporate Revenues $ 4 —% $ 11 — % Adjusted Corporate Expenses $ (165) (15) % $ (506) (22) % Q4 Adjusted Corporate Expenses decrease driven by disciplined cost management and environ
Slide 13: Consistent cash flow + capital allocation driving shareholder value
Consistent cash flow + capital allocation driving shareholder value ($ in millions) $6,085 $(859) $(345) $(3,146) $(627) $5,691 $4,583 YE Cash1 Operating Cash Flow Capital Expenditures Dividends Share Repurchases Other2 YE Cash1 3/31/24 3/31/25 See endnotes for details 13 © 2025 McKesson Corporation
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 mos
Slide 15: Fiscal 2026 Adjusted EPS outlook
Fiscal 2026 Adjusted EPS outlook $36.75 to $37.55 Strong Business Performance Capital Deployment Fiscal 2026 Adjusted Operating Profit growth of 8% to 12% Anticipate approximately $2.5 billion in share repurchases in compared to prior year Fiscal 2026 Fiscal 2026 Adjusted Earnings per Diluted Share
Slide 16: Fiscal 2026 Adjusted EPS outlook
Fiscal 2026 Adjusted EPS outlook $36.75 to $37.55 11% to 14% growth $33.05 FY25 Operating FY25 McKesson Ventures Other1 FY26 Performance Actual Outlook See endnotes for details 16 © 2025 McKesson Corporation. All rights reserved.
Slide 17: Fiscal 2026 adjusted outlook
Fiscal 2026 adjusted outlook Consolidated metrics Metric Fiscal 2026 Outlook Fiscal 2025 Actual Earnings per Diluted Share $36.75 to $37.55 $33.05 GAAP Revenues 11% to 15% growth 16% growth Operating Profit 8% to 12% growth 15% growth Corporate Expenses $570 to $630 million $506 million Interest Exp
Slide 18: Fiscal 2026 adjusted outlook
Fiscal 2026 adjusted outlook Segment metrics U.S. Pharmaceutical Prescription Technology Medical-Surgical International Solutions Solutions Revenues 12% to 16% growth 4% to 8% growth 2% to 6% growth 2% decline to 2% growth Adjusted Operating Profit 12% to 16% growth 9% to 13% growth 2% to 6% growth
Slide 19: Long-term growth targets
Long-term growth targets Long-Term Adjusted Segment Operating Profit Growth Targets FY26 FY20 to FY25 Previous Updated Outlook CAGR U.S. Pharmaceutical 5% to 7% growth 6% to 8% growth 12% to 16% growth 7% Prescription Technology Solutions 11% to 12% growth 11% to 12% growth 9% to 13% growth 15% Reaf
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: Appendix
Appendix
Slide 22: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation Q4 Fiscal 2025 and Q4 Fiscal 2024 McKESSON CORPORATION Schedule 2 RECONCILIATION OF GAAP OPERATING RESULTS TO ADJUSTED RESULTS (NON-GAAP) (unaudited) (in millions) Three Months Ended March 31, Year Ended March 31, 2025 2024 Change 2025 2024 Change Net income (GAAP) $
Slide 23: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation Q4 Fiscal 2025 and Q4 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 March 31, Year Ended March 31, 2025 2024 Change
Slide 24: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation Q4 Fiscal 2025 and Q4 Fiscal 2024 McKESSON CORPORATION Schedule 2 RECONCILIATION OF GAAP OPERATING RESULTS TO ADJUSTED RESULTS (NON-GAAP) (Continued) (unaudited) (in millions) Three Months Ended March 31, Year Ended March 31, 2025 2024 Change 2025 2024 Change Gross pr
Slide 25: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation Q4 Fiscal 2025 and Q4 Fiscal 2024 McKESSON CORPORATION Schedule 2 RECONCILIATION OF GAAP OPERATING RESULTS TO ADJUSTED RESULTS (NON-GAAP) (Continued) (unaudited) (in millions) Three Months Ended March 31, Year Ended March 31, 2025 2024 Change 2025 2024 Change Interest
Slide 26: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation Q4 Fiscal 2025 and Q4 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 27: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation Q4 Fiscal 2025 and Q4 Fiscal 2024 McKESSON CORPORATION Schedule 3 RECONCILIATION OF GAAP SEGMENT OPERATING RESULTS TO ADJUSTED RESULTS (NON-GAAP) (unaudited) (in millions) Three Months Ended March 31, 2025 2024 Change As reported As adjusted As reported As adjusted As
Slide 28: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation Q4 Fiscal 2025 and Q4 Fiscal 2024 McKESSON CORPORATION Schedule 3 RECONCILIATION OF GAAP SEGMENT OPERATING RESULTS TO ADJUSTED RESULTS (NON-GAAP) (Continued) (unaudited) (in millions) Year Ended March 31, 2025 2024 Change As reported As adjusted As reported As adjuste
Slide 29: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation Q4 Fiscal 2025 and Q4 Fiscal 2024 McKESSON CORPORATION Schedule 6 RECONCILIATION OF GAAP CASH FLOW TO FREE CASH FLOW (NON-GAAP) (unaudited) (in millions) Year Ended March 31, 2025 2024 Change GAAP CASH FLOW CATEGORIES Net cash provided by operating activities $ 6,085
Slide 30: Financial Statement Notes
Financial Statement Notes McKESSON CORPORATION FINANCIAL STATEMENT NOTES 1 of 2 1. Transaction-related expenses and adjustments for the year ended March 31, 2025 includes a net loss of $667 million (pre-tax and after-tax), respectively, to remeasure assets and liabilities held for sale to fair value
Slide 31: Financial Statement Notes
Financial Statement Notes 2 of 2 FINANCIAL STATEMENT NOTES (continued) 5. Other adjustments, net for the year ended March 31, 2025 includes a pre-tax credit of $206 million ($152 million after-tax), and for the year ended March 31, 2024 includes pre-tax charges of $725 million ($536 million after-ta
Slide 32: 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 33: 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 34: 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