Slide 1: McKesson Corporation First Quarter Fiscal 2026 Earnings Call
McKesson Corporation First Quarter Fiscal 2026 Earnings Call August 6, 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: First Quarter Fiscal 2026 Results
First Quarter Fiscal 2026 Results
Slide 5: Sustained momentum and growth
Sustained momentum and growth Business Summary Company Updates • Revenues of $97.8 billion increased 23% • McKesson’s Board of Directors approved a 15% increase to the quarterly dividend to $0.82 per share, marking the ninth • Earnings per Diluted Share of $6.25 decreased $0.75 consecutive year of i
Slide 6: Consolidated adjusted financial information
Consolidated adjusted financial information Q1 Fiscal 2026 Results Adjusted Results Q1 YoY ($ and shares in millions, except per share amounts) FY 26 Change GAAP Revenues $ 97,827 23 % Gross Profit $ 3,264 7% Operating Expenses $ (1,904) (1) % Operating Profit $ 1,424 9% Interest Expense $ (44) (37)
Slide 7: Adjusted Earnings Per Share Results
Adjusted Earnings Per Share Results Q1 Fiscal 2026 year-over-year $0.13 $(0.61) $0.33 $1.29 $(0.76) $8.26 $7.88 Q1 FY25 Operating Diluted Weighted Other1 McKesson Ventures Tax Rate Q1 FY26 Performance Average Common Shares Adj. EPS Adj. EPS See endnotes for details 7 © 2025 McKesson Corporation. All
Slide 8: U.S. Pharmaceutical
U.S. Pharmaceutical Q1 Fiscal 2026 Results Results Q1 YoY ($ in millions) FY 26 Change U.S. Pharmaceutical Revenues $ 89,954 25 % Adjusted Segment Operating Profit $ 950 17 % Adjusted Segment Operating Profit Margin 1.06 % (8) bp Q1 revenue growth driven by increased prescription volumes from retail
Slide 9: Prescription Technology Solutions
Prescription Technology Solutions Q1 Fiscal 2026 Results Results Q1 YoY ($ in millions) FY 26 Change Prescription Technology Solutions Revenues $ 1,434 16 % Adjusted Segment Operating Profit $ 269 21 % Adjusted Segment Operating Profit Margin 18.76 % 79 bp Q1 revenue growth driven by increased presc
Slide 10: Medical-Surgical Solutions
Medical-Surgical Solutions Q1 Fiscal 2026 Results Results Q1 YoY ($ in millions) FY 26 Change Medical-Surgical Solutions Revenues $ 2,701 2% Adjusted Segment Operating Profit $ 244 22 % Adjusted Segment Operating Profit Margin 9.03 % 144 bp Q1 revenue increase driven by higher volumes of specialty p
Slide 11: International
International Q1 Fiscal 2026 Results Results Q1 YoY ($ in millions) FY 26 Change International Revenues $ 3,738 1% Adjusted Segment Operating Profit $ 99 (3) % Adjusted Segment Operating Profit Margin 2.65 % (11) bp Q1 revenue increase driven by higher pharmaceutical distribution volumes in the Cana
Slide 12: Corporate
Corporate Q1 Fiscal 2026 Results Results Q1 YoY ($ in millions) FY 26 Change Corporate Adjusted Corporate Expenses $ (138) 294 % Q1 Adjusted Corporate Expenses increase driven by pre-tax gains of $110 million in the first quarter of fiscal 2025 associated with McKesson Ventures’ equity investments 1
Slide 13: Efficient capital deployment powers long-term growth and shareholder value
Efficient capital deployment powers long-term growth and shareholder value ($ in millions) $5,691 $(918) $(189) $(90) $(581) $(3,359) $1,864 $2,418 YE Cash1 Operating Cash Flow Capital Expenditures Dividends Share Repurchases M&A Other2 Q1 Cash1 3/31/25 6/30/25 See endnotes for details 13 © 2025 McK
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 $37.10 to $37.90 Strong Business Performance Capital Deployment Fiscal 2026 Adjusted Operating Profit growth of 9% to 13% 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 12% to 15% $37.10 to $37.90 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: Fiscal 2026 adjusted outlook
Fiscal 2026 adjusted outlook Consolidated metrics Metric Fiscal 2026 Outlook Fiscal 2025 Actual Earnings per Diluted Share $37.10 to $37.90 $33.05 Previously $36.90 to $37.70 GAAP Revenues 11% to 15% growth 16% growth Operating Profit 9% to 13% growth 15% growth Previously 8% to 12% growth Corporate
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 8% to 12% growth 2% to 6% growth 2% decline to 2% growth Previously 4% to 8% growth High end of Adjusted Operating Profit 9% to 13% g
Slide 19: 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 20: Appendix
Appendix
Slide 21: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation Q1 Fiscal 2026 and Q1 Fiscal 2025 McKESSON CORPORATION Schedule 2 RECONCILIATION OF GAAP OPERATING RESULTS TO ADJUSTED RESULTS (NON-GAAP) (unaudited) (in millions) Three Months Ended June 30, 2025 2024 Change Net income (GAAP) $ 831 $ 960 (13)% Net income attributable
Slide 22: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation Q1 Fiscal 2026 and Q1 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 June 30, 2025 2024 Change Earnings per diluted
Slide 23: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation Q1 Fiscal 2026 and Q1 Fiscal 2025 McKESSON CORPORATION Schedule 2 RECONCILIATION OF GAAP OPERATING RESULTS TO ADJUSTED RESULTS (NON-GAAP) (Continued) (unaudited) (in millions) Three Months Ended June 30, 2025 2024 Change Gross profit (GAAP) $ 3,279 $ 3,152 4% Pre-tax
Slide 24: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation Q1 Fiscal 2026 and Q1 Fiscal 2025 McKESSON CORPORATION Schedule 2 RECONCILIATION OF GAAP OPERATING RESULTS TO ADJUSTED RESULTS (NON-GAAP) (Continued) (unaudited) (in millions) Three Months Ended June 30, 2025 2024 Change Interest expense (GAAP) $ (49) $ (75) (35)% Pre
Slide 25: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation Q1 Fiscal 2026 and Q1 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 Q1 Fiscal 2026 and Q1 Fiscal 2025 McKESSON CORPORATION Schedule 3 RECONCILIATION OF GAAP SEGMENT OPERATING RESULTS TO ADJUSTED RESULTS (NON-GAAP) (unaudited) (in millions) Three Months Ended June 30, 2025 2024 Change As reported As adjusted As reported As adjusted As
Slide 27: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation Q1 Fiscal 2026 and Q1 Fiscal 2025 McKESSON CORPORATION Schedule 6 RECONCILIATION OF GAAP CASH FLOW TO FREE CASH FLOW (NON-GAAP) (unaudited) (in millions) Three Months Ended June 30, 2025 2024 Change GAAP CASH FLOW CATEGORIES Net cash used in operating activities $ (91
Slide 28: Financial Statement Notes
Financial Statement Notes McKESSON CORPORATION FINANCIAL STATEMENT NOTES 1 of 1 1. Restructuring, impairment, and related charges, net for the three months ended June 30, 2025 includes pre-tax charges of $47 million ($35 million after-tax), primarily within Medical-Surgical Solutions and Corporate E
Slide 29: 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 30: 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 31: 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