Slides
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McKesson Corporation First Quarter Fiscal 2027 Earnings Call August 5 , 2026
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© 2026 McKesson Corporation. All rights reserved.2 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 “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. Forward-looking statements are not representations of historical or current facts or circumstances and they involve known and unknown risks and uncertainties that could cause actual results to differ materially from those projected, anticipated, or implied. 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 federal securities laws, we undertake no obligation to publicly release the result of any revisions to any forward-looking statements to reflect events or circumstances after the date the statements are made, or to reflect the occurrence of unanticipated events. 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: our planned separation of Medical-Surgical Solutions is contingent upon the satisfaction of certain conditions, may not be completed on the currently contemplated terms or timeline, or at all, and, if completed, may not achieve the intended financial and strategic benefits; 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; the adoption and use of artificial intelligence in our business operations exposes us to risks and uncertainties; 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 future 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; and we might be adversely impacted by conditions and events outside of our control, such as widespread public health issues, natural disasters, and geopolitical factors. GAAP / Non-GAAP Reconciliation In an effort to provide additional and useful information regarding the Company’s financial results and other financial information as determined by generally accepted accounting principles (GAAP), certain materials in this presentation include non-GAAP information. The Company believes the presentation of non-GAAP measures provides useful supplemental information to investors with regard to its operating performance as well as comparability of financial results period-over-period. A reconciliation of the non-GAAP information to GAAP, and other related information is available in the appendix to this presentation, tables accompanying each period’s earnings press release, materials furnished to the SEC, and posted to www.mckesson.com under the “Investors” tab. Cautionary Statements
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© 2026 McKesson Corporation. All rights reserved.3 Accelerating Long-Term Growth and Value Creation 13% to 16% Long -Term Adjusted EPS Growth Target Grow Oncology & Multispecialty and Biopharma Platforms Strengthen North American Distribution Modernize & Accelerate the Portfolio Focus On People and Culture Our Company Priorities Organic Growth Operating Leverage Capital Allocation See endnotes for details on Long-Term EPS Target1
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© 2026 McKesson Corporation. All rights reserved.4 First Quarter Fiscal 2027 Results
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© 2026 McKesson Corporation. All rights reserved.5 F I R S T Q U A R T E R F I S C A L 2 0 2 7 R E S U L T S Company Highlights • Remains committed to a disciplined capital allocation framework and continued to return excess capital to shareholders • In the quarter, McKesson completed $2.5 billion share repurchases, including $2.25 billion under the accelerated share repurchase program • McKesson’s Board of Directors approved a 15% increase to the quarterly dividend to $0.94 per share, marking the tenth consecutive year of increases • Advanced the planned separation of Medical-Surgical Solutions segment • Sold an approximately 13% minority interest in Medical- Surgical Solutions to Apollo Funds for $1.25 billion • Established a $2.25 billion secured Term Loan B facility • Announced Wellverse as the name of the future standalone Medical-Surgical Solutions business $105.4B 8% Q1 ADJUSTED EARNINGS PER DILUTED SHARE $9.93 RAISED FISCAL 2027 GUIDANCE FOR ADJUSTED EARNINGS PER DILUTED SHARE TO $44.20 to $45.00 20% Company Updates Q1 QUARTERLY REVENUE 13% - 15%
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© 2026 McKesson Corporation. All rights reserved.6 F I R S T Q U A R T E R F I S C A L 2 0 2 7 R E S U L T S Consolidated Adjusted Financial Information Q1 Fiscal 2027 Results See endnotes for details Adjusted Results Q1 YoY ($ and shares in millions, except per share amounts) FY 27 Change GAAP Revenues $ 105,380 8 % Gross Profit $ 3,677 13 % Operating Expenses $ (2,090) 10 % Operating Profit $ 1,653 16 % Interest Expense $ (75) 70 % Income Tax Expense $ (340) 15 % Net Income Attributable to Noncontrolling Interests1 $ (55) 15 % Earnings $ 1,183 14 % Earnings per Diluted Share $ 9.93 20 % GAAP Diluted weighted-average common shares 119.2 (5) %
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© 2026 McKesson Corporation. All rights reserved.7 Adjusted Earnings Per Share Results Q1 Fiscal 2027 year-over-year Q1 FY26 Adj. EPS Operating Performance Capital Allocation Other1 Q1 FY27 Adj. EPS $1.41 $(0.24)$0.50 $8.26 $9.93 See endnotes for details F I R S T Q U A R T E R F I S C A L 2 0 2 7 R E S U L T S
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© 2026 McKesson Corporation. All rights reserved.8 Q1 Revenue growth driven by increased prescription transaction volumes, including higher volumes from specialty products, partially offset by lower contributions from branded pharmaceuticals Q1 Adjusted Segment Operating Profit increase driven by growth in the distribution of specialty products to health systems and strategic accounts, and the timing of new product launches North American Pharmaceutical F I R S T Q U A R T E R F I S C A L 2 0 2 7 R E S U L T S Results Q1 YoY ($ in millions) FY 27 Change North American Pharmaceutical Revenue $ 86,773 5 % Adjusted Segment Operating Profit $ 894 19 % Adjusted Segment Operating Profit Margin 1.03 % 12 bp
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© 2026 McKesson Corporation. All rights reserved.9 Q1 Revenue driven by growth in provider solutions and specialty distribution, including contributions from acquisitions Q1 Adjusted Segment Operating Profit driven by growth in provider solutions and specialty distribution, including contributions from acquisitions Oncology & Multispecialty F I R S T Q U A R T E R F I S C A L 2 0 2 7 R E S U L T S Results Q1 YoY ($ in millions) FY 27 Change Oncology & Multispecialty Revenue $ 14,222 33 % Adjusted Segment Operating Profit $ 405 41 % Adjusted Segment Operating Profit Margin 2.85 % 16 bp
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© 2026 McKesson Corporation. All rights reserved.10 Q1 Revenue growth driven by increased prescription volumes in third-party logistics and access solutions Q1 Adjusted Segment Operating Profit increase driven by higher demand for access solutions Prescription Technology Solutions F I R S T Q U A R T E R F I S C A L 2 0 2 7 R E S U L T S Results Q1 YoY ($ in millions) FY 27 Change Prescription Technology Solutions Revenue $ 1,566 9 % Adjusted Segment Operating Profit $ 303 13 % Adjusted Segment Operating Profit Margin 19.35 % 59 bp
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© 2026 McKesson Corporation. All rights reserved.11 Q1 Revenue increase driven by growth across alternate sites of care, led by higher volumes of specialty pharmaceuticals Q1 Adjusted Segment Operating Profit decrease driven by product mix and one-time administrative expenses, partially offset by contributions from the extended care channel Medical-Surgical Solutions F I R S T Q U A R T E R F I S C A L 2 0 2 7 R E S U L T S Results Q1 YoY ($ in millions) FY 27 Change Medical-Surgical Solutions Revenue $ 2,819 4 % Adjusted Segment Operating Profit $ 195 (20) % Adjusted Segment Operating Profit Margin 6.92 % (211) bp
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© 2026 McKesson Corporation. All rights reserved.12 Corporate Q1 Adjusted Corporate Expenses increase driven by higher technology infrastructure investments F I R S T Q U A R T E R F I S C A L 2 0 2 7 R E S U L T S Results Q1 YoY ($ in millions) FY 27 Change Corporate Adjusted Corporate Expenses $ (144) 4 %
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© 2026 McKesson Corporation. All rights reserved.13 Efficient Capital Deployment and Financial Discipline Drive Shareholder Value ($ in millions) YE Cash1 3/31/26 Operating Cash Flow Capital Expenditures Share Repurchases + Dividends Long Term Debt2 Proceeds from Apollo Fund’s Investment in MMS2 Other3 Q1 Cash1 6/30/26 $3,975 $(2,632) $5,164 $(152) $(220) $3,214 See endnotes for details $1,238 F I R S T Q U A R T E R F I S C A L 2 0 2 7 R E S U L T S $(259)
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© 2026 McKesson Corporation. All rights reserved.14 Fiscal 2027 Outlook On the following slides, McKesson presents an overview of its fiscal 2027 Outlook and assumptions. 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, transaction related expenses and adjustments, 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.
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© 2026 McKesson Corporation. All rights reserved.15 F I S C A L 2 0 2 7 A D J U S T E D O U T L O O K Fiscal 2027 Adjusted EPS Outlook Anticipate Fiscal 2027 Adjusted Operating Profit growth of 9% to 13% compared to prior year Fiscal 2027 Adjusted Earnings per Diluted Share guidance range indicates 13% to 15% growth compared to prior year $44.20 to $45.00 Anticipate approximately $5.0 billion in share repurchases in Fiscal 2027, of which $2.5 billion was completed in the first quarter McKesson’s Board of Directors approved a 15% increase to the quarterly dividend Focused investments to accelerate the growth of our oncology and multispecialty and biopharma services platforms Strong Business Performance Capital Deployment
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© 2026 McKesson Corporation. All rights reserved.16 F I S C A L 2 0 2 7 A D J U S T E D O U T L O O K Raising Fiscal 2027 Adjusted EPS Outlook See endnotes for details FY26 Actual Norway Performance USON Gains FY26 Baseline Operating Performance Capital Allocation Other1 MMS Noncontrolling Interest FY27 Outlook $39.11 $38.37 $44.20 to $45.00 15% to 17% growth
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© 2026 McKesson Corporation. All rights reserved.17 F I S C A L 2 0 2 7 A D J U S T E D O U T L O O K Raising Fiscal 2027 Adjusted EPS Outlook FY27 Outlook May 7, 2026 Operational Performance Tax Capital Allocation FY27 Outlook August 6, 2026 $43.80 to $44.60 $44.20 to $45.00
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© 2026 McKesson Corporation. All rights reserved.18 F I S C A L 2 0 2 7 A D J U S T E D O U T L O O K Metric Fiscal 2027 Outlook Fiscal 2026 Actual Earnings per Diluted Share $44.20 to $45.00 Previously $43.80 to $44.60 $39.11 Revenues 5% to 9% growth 12% growth Operating Profit 9% to 13% growth Previously 8% to 12% growth 15% growth Corporate Expenses $580 to $640 million $654 million Interest Expense $380 to $420 million $230 million Net Income Attributable to Noncontrolling Interests1 $295 to $325 million $242 million Effective Tax Rate 18% to 19% Previously 17% to 19% 18.3% Free Cash Flow $4.5 to $4.9 billion $5.4 billion Share Repurchases Approximately $5.0 billion $4.8 billion Diluted Weighted Average Common Shares 115.5 to 117.5 million Previously 116 to 118 million 124.1 million Consolidated Metrics See endnotes for details
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© 2026 McKesson Corporation. All rights reserved.19 F I S C A L 2 0 2 7 A D J U S T E D O U T L O O K Segment Metrics REVENUE ADJUSTED OPERATING PROFIT North American Pharmaceutical 4.0% to 8.0% growth High end of 5.5% to 9.5% growth Previously 5.5% to 9.5% growth Oncology & Multispecialty 14.5% to 18.5% growth 13.5% to 17.5% growth Prescription Technology Solutions 2.5% to 6.5% growth 11.0% to 15.0% growth Medical-Surgical Solutions 1.0% to 6.0% growth Flat to 4.0% growth
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© 2026 McKesson Corporation. All rights reserved.20 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 portfolio investments Slide 6 – Consolidated Adjusted Financial Information 1. Non-GAAP measure representing Net income attributable to noncontrolling interests adjusted for • the minority shareholders' proportionate share of acquisition-related intangibles amortization, restructuring and impairment charges, and transaction-related expenses of $(11) million in the first quarter of fiscal 2027; and • redeemable noncontrolling interests adjustments of $374 million, including $293 million related to the minority interest in the Medical-Surgical Solutions business and $81 million related to Core Ventures in the first quarter of fiscal 2027 Slide 7 – Adjusted Earnings Per Share Results 1. Includes Adjusted Net Income Attributable to Non-Controlling Interests; Adjusted Interest Expense; Adjusted Effective Tax Rate; and contribution of Norwegian businesses, which were divested during the fourth quarter of fiscal 2026 Slide 13 – Efficient Capital Deployment and Financial Discipline Drive Shareholder Value 1. Cash comprises cash and cash equivalents 2. Proceeds net of transaction fees 3. Includes Other non-capital expenditure investing; Common Stock Issuances, Other Financing, the effect of exchange rate changes on cash, cash equivalents, and restricted cash; and impact of changes in restricted cash Slide 16 – Raising Fiscal 2027 Adjusted EPS Outlook 1. Includes Adjusted Effective Tax Rate; Adjusted Net Income Attributable to Non-Controlling Interests; and Adjusted Interest Expense Slide 18 – Consolidated Metrics 1. Non-GAAP measure representing Net income attributable to noncontrolling interests adjusted for the proportionate share of acquisition-related intangibles amortization, restructuring and impairment charges, and transaction-related expenses and redeemable noncontrolling interests adjustments
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© 2026 McKesson Corporation. All rights reserved.21 Appendix
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© 2026 McKesson Corporation. All rights reserved.22 GAAP to Non-GAAP Reconciliation Q1 Fiscal 2027 and Q1 Fiscal 2026 Refer to Slide 26 of this presentation for all footnote references. McKESSON CORPORATION RECONCILIATION OF GAAP OPERATING RESULTS TO ADJUSTED RESULTS (NON-GAAP) (unaudited) (in millions) Three Months Ended June 30, 2026 2025 Change Net income (GAAP) $ 1,032 $ 831 24 % Net income attributable to noncontrolling interests (GAAP) (418) (47) 789 Net income attributable to McKesson Corporation (GAAP) 614 784 (22) Pre-tax adjustments: Amortization of acquisition-related intangibles 74 50 48 Transaction-related expenses and adjustments (1) 108 86 26 LIFO inventory-related adjustments (2) (7) (71) Gains from antitrust legal settlements (6) (8) (25) Restructuring, impairment, and related charges, net (4) 136 47 189 Claims and litigation charges, net (34) — — Other adjustments, net (5) (6) 161 (104) Income tax effect on pre-tax adjustments (64) (75) (15) Net income attributable to noncontrolling interests effect on pre-tax adjustments and redeemable noncontrolling interests adjustments (2) (3) 363 (1) — Adjusted Earnings (Non-GAAP) $ 1,183 $ 1,037 14 % Schedule 2
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© 2026 McKesson Corporation. All rights reserved.23 GAAP to Non-GAAP Reconciliation Q1 Fiscal 2027 and Q1 Fiscal 2026 Refer to Slide 26 of this presentation for all footnote references. McKESSON CORPORATION RECONCILIATION OF GAAP OPERATING RESULTS TO ADJUSTED RESULTS (NON-GAAP) (unaudited) (in millions, except per share amounts) Three Months Ended June 30, 2026 2025 Change Earnings per diluted common share attributable to McKesson Corporation (GAAP) (a) $ 5.15 $ 6.25 (18)% After-tax adjustments: Amortization of acquisition-related intangibles 0.41 0.29 41 Transaction-related expenses and adjustments 3.85 0.58 564 LIFO inventory-related adjustments (0.02) (0.04) (50) Gains from antitrust legal settlements (0.03) (0.04) (25) Restructuring, impairment, and related charges, net 0.82 0.28 193 Claims and litigation charges, net (0.21) — — Other adjustments, net (0.04) 0.94 (104) Adjusted Earnings per Diluted Share (Non-GAAP) (a) $ 9.93 $ 8.26 20 Diluted weighted-average common shares outstanding 119.2 125.5 (5)% Schedule 2 (Continued)
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© 2026 McKesson Corporation. All rights reserved.24 GAAP to Non-GAAP Reconciliation Q1 Fiscal 2027 and Q1 Fiscal 2026 Refer to Slide 26 of this presentation for all footnote references. McKESSON CORPORATION RECONCILIATION OF GAAP OPERATING RESULTS TO ADJUSTED RESULTS (NON-GAAP) (unaudited) (in millions) Three Months Ended June 30, 2026 2025 Change Gross profit (GAAP) $ 3,685 $ 3,279 12 % Pre-tax adjustments: LIFO inventory-related adjustments (2) (7) (71) Gains from antitrust legal settlements (6) (8) (25) Adjusted Gross Profit (Non-GAAP) $ 3,677 $ 3,264 13 % Total operating expenses (GAAP) $ (2,366) $ (2,243) 5 % Pre-tax adjustments: Amortization of acquisition-related intangibles 74 50 48 Transaction-related expenses and adjustments (1) 106 81 31 Restructuring, impairment, and related charges, net (4) 136 47 189 Claims and litigation charges, net (34) — — Other adjustments, net (5) (6) 161 (104) Adjusted Operating Expenses (Non-GAAP) $ (2,090) $ (1,904) 10 % Schedule 2 (Continued)
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© 2026 McKesson Corporation. All rights reserved.25 GAAP to Non-GAAP Reconciliation Q1 Fiscal 2027 and Q1 Fiscal 2026 Refer to Slide 26 of this presentation for all footnote references. McKESSON CORPORATION RECONCILIATION OF GAAP OPERATING RESULTS TO ADJUSTED RESULTS (NON-GAAP) (unaudited) (in millions) Three Months Ended June 30, 2026 2025 Change Interest expense (GAAP) $ (77) $ (49) 57 % Pre-tax adjustments: Transaction-related expenses and adjustments 2 5 (60) Adjusted Interest Expense (Non-GAAP) $ (75) $ (44) 70 % Income tax expense (GAAP) $ (276) $ (220) 25 % Tax adjustments: Amortization of acquisition-related intangibles (18) (13) 38 Transaction-related expenses and adjustments (1) (22) (13) 69 LIFO inventory-related adjustments — 2 (100) Gains from antitrust legal settlements 2 2 — Restructuring, impairment, and related charges, net (4) (36) (12) 200 Claims and litigation charges, net 9 — — Other adjustments, net (5) 1 (41) 102 Adjusted Income Tax Expense (Non-GAAP) $ (340) $ (295) 15 % Schedule 2 (Continued)
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© 2026 McKesson Corporation. All rights reserved.26 GAAP to Non-GAAP Reconciliation Q1 Fiscal 2027 and Q1 Fiscal 2026 McKESSON CORPORATION RECONCILIATION OF GAAP OPERATING RESULTS TO ADJUSTED RESULTS (NON-GAAP) (unaudited) (in millions, except per share amounts) (a) Certain computations may reflect rounding adjustments. Any percentage changes displayed which are not meaningful are displayed as zero percent. Refer to the section entitled "Financial Statement Notes" of this presentation. For more information relating to the Adjusted Earnings (Non-GAAP), Adjusted Earnings per Diluted Share (Non-GAAP), 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 presentation. Schedule 2 (Continued)
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© 2026 McKesson Corporation. All rights reserved.27 GAAP to Non-GAAP Reconciliation Q1 Fiscal 2027 and Q1 Fiscal 2026 McKESSON CORPORATION RECONCILIATION OF GAAP SEGMENT OPERATING RESULTS TO ADJUSTED RESULTS (NON-GAAP) (unaudited) (in millions) Three Months Ended June 30, 2026 2025 Change As reported (GAAP) Adjustments As adjusted (Non-GAAP) As reported (GAAP) Adjustments As adjusted (Non-GAAP) As reported (GAAP) As adjusted (Non-GAAP) REVENUES North American Pharmaceutical $ 86,773 $ — $ 86,773 $ 82,729 $ — $ 82,729 5 % 5 % Oncology & Multispecialty 14,222 — 14,222 10,658 — 10,658 33 33 Prescription Technology Solutions 1,566 — 1,566 1,434 — 1,434 9 9 Medical-Surgical Solutions 2,819 — 2,819 2,701 — 2,701 4 4 Other — — — 305 — 305 (100) (100) Revenues $ 105,380 $ — $ 105,380 $ 97,827 $ — $ 97,827 8 % 8 % OPERATING PROFIT North American Pharmaceutical (4) (5) $ 903 $ (9) $ 894 $ 594 $ 155 $ 749 52 % 19 % Oncology & Multispecialty 325 80 405 212 75 287 53 41 Prescription Technology Solutions (4) 226 77 303 253 16 269 (11) 13 Medical-Surgical Solutions (1) 122 73 195 221 23 244 (45) (20) Other — — — 13 — 13 (100) (100) Subtotal 1,576 221 1,797 1,293 269 1,562 22 15 Corporate expenses, net (1) (4) (191) 47 (144) (193) 55 (138) (1) 4 Income before interest expense and income taxes $ 1,385 $ 268 $ 1,653 $ 1,100 $ 324 $ 1,424 26 % 16 % OPERATING PROFIT AS A % OF REVENUES North American Pharmaceutical 1.04 % 1.03 % 0.72 % 0.91 % 32 bp 12 bp Oncology & Multispecialty 2.29 2.85 1.99 2.69 30 16 Prescription Technology Solutions 14.43 19.35 17.64 18.76 (321) 59 Medical-Surgical Solutions 4.33 6.92 8.18 9.03 (385) (211) Other — — 4.26 4.26 (426) (426) Any percentage changes displayed above which are not meaningful are displayed as zero percent. Refer to the section entitled "Financial Statement Notes" of this presentation. 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 FinancialInformation” of this presentation. Schedule 3
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© 2026 McKesson Corporation. All rights reserved.28 GAAP to Non-GAAP Reconciliation Q1 Fiscal 2027 and Q1 Fiscal 2026 McKESSON CORPORATION RECONCILIATION OF GAAP CASH FLOW TO FREE CASH FLOW (NON-GAAP) (unaudited) (in millions) Three Months Ended June 30, 2026 2025 Change GAAP CASH FLOW CATEGORIES Net cash used in operating activities $ (220) $ (918) (76)% Net cash used in investing activities (214) (3,564) (94) Net cash provided by financing activities 1,632 1,176 39 Effect of exchange rate changes on cash, cash equivalents, and restricted cash (10) 33 (130) Net increase (decrease) in cash, cash equivalents, and restricted cash $ 1,188 $ (3,273) 136 % FREE CASH FLOW (NON-GAAP) Net cash used in operating activities $ (220) $ (918) (76)% Payments for property, plant, and equipment (112) (111) 1 Capitalized software expenditures (40) (78) (49) Free Cash Flow (Non-GAAP) $ (372) $ (1,107) (66)% Any percentage changes displayed above which are not meaningful are displayed as zero percent. For more information relating to the Free Cash Flow (Non-GAAP) definition, refer to the section entitled“Supplemental Non-GAAP FinancialInformation” of this presentation. Schedule 6
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© 2026 McKesson Corporation. All rights reserved.29 GAAP to Non-GAAP Reconciliation Trailing Twelve Months Ended Q1 FY27 Schedule 6 (Continued) McKESSON CORPORATION RECONCILIATION OF GAAP CASH FLOW TO FREE CASH FLOW (NON-GAAP) (unaudited) (in millions) Trailing Twelve Months Ended June 30, 2026 (1) FREE CASH FLOW (NON-GAAP) Net cash provided by operating activities $ 6,853 Payments for property, plant, and equipment (437) Capitalized software expenditures (271) Free Cash Flow (Non-GAAP) $ 6,145 For more information relating to the Free Cash Flow (Non-GAAP) definition, refer to the section entitled“Supplemental Non-GAAP FinancialInformation” of this presentation. 1) Amounts for the trailing twelve months ended June 30, 2026 were derived using full year fiscal 2026 Net cash provided by operating activities, Payments for property, plant, and equipment, and Capitalized software expenditures, deducting the comparative amounts for each item for the three months ended June 30, 2025 of fiscal 2026, and adding the comparative amounts for each item for the three months ended June 30, 2026 of fiscal 2027.
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© 2026 McKesson Corporation. All rights reserved.30 Financial Statement Notes McKESSON CORPORATION FINANCIAL STATEMENT NOTES 1. Transaction-related expenses and adjustments for the three months ended June 30, 2026 include pre-tax charges of $68 million ($50 million after-tax) within Medical-Surgical Solutions and Corporate Expenses, net, related to our planned separation of the Medical -Surgical Solutions business. These charges are included under "total operating expenses" in the reconciliation of McKesson's GAAP operating results to adjusted results (Non -GAAP) provided in Schedule 2 of the accompanying financial statement tables. 2. Transaction-related expenses and adjustments for the three months ended June 30, 2026 include a charge of $293 million (pre-tax and after-tax), within Medical-Surgical Solutions, related to the remeasurement to redemption value of redeemable noncontrolling interests arising from the acquisiti on by Apollo Funds of an approximately 13% minority ownership interest in the Company’s Medical-Surgical Solutions segment. This charge was recorded in “net income attributable to noncontrolling interests” in the Condensed Consolidated Statements of Operations (GAAP) provided in Schedule 1 of the accompanying financial statement tables. 3. Transaction-related expenses and adjustments for the three months ended June 30, 2026 includes a charge of $81 million (pre-tax and after-tax), within Oncology & Multispecialty, related to the remeasurement of redeemable noncontrolling interests to redemption value. This charge was reco rded in “net income attributable to noncontrolling interests” in the Condensed Consolidated Statements of Operations (GAAP) provided in Schedule 1 of the accompanying financial statement tables. 4. Restructuring, impairment, and related charges, net for the three months ended June 30, 2026 includes pre-tax charges of $136 million ($100 million after-tax), primarily within Prescription Technology Solutions, Corporate Expenses, net, and Medical -Surgical Solutions. The three months ended June 30, 2025 includes pre-tax charges of $47 million ($35 million after-tax), primarily within Corporate expenses, net and Medical -Surgical Solutions. These charges are included under "total operating expenses" in the reconciliation of McKesson's GAAP operating results to adjusted results (Non-GAAP) provided in Schedule 2 of the accompanying financial statement tables. 5. Other adjustments, net for the three months ended June 30, 2025 includes a pre-tax provision for bad debts of $189 million ($140 million after-tax), within North American Pharmaceutical related to the bankruptcy of our customer, Rite Aid Corporation (including certain of its subsidiaries, "Rite Aid"). Management believes this charge is not reflective of allowances recorded in the normal course of business operations and are related to Rite Aid's recently concluded bankruptc y proceedings, and is therefore excluded from the determination of our adjusted results (Non-GAAP). This charge represents the remaining trade accounts receivable balances due fr om Rite Aid prior to its bankruptcy petition filing and is included under "total operating expenses" in the reconciliation of McKesson's GAAP operating results to adjuste d results (Non-GAAP) provided in Schedule 2 of the accompanying financial statement tables. 1 of 1
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© 2026 McKesson Corporation. All rights reserved.31 Financial Statement Notes McKESSON CORPORATION 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 Corporation (the "Company" or "we") also presents the following Non-GAAP measures in this presentation. • Adjusted Gross Profit (Non-GAAP): We define Adjusted Gross Profit as GAAP gross profit, excluding transaction-related expenses and adjustments, last-in, first-out (“LIFO”) inventory-related adjustments, gains from antitrust legal settlements, and other adjustments. • Adjusted Operating Expenses (Non-GAAP): We define Adjusted Operating Expenses as GAAP total operating expenses, excluding amortization of acquisition-related intangibles, transaction-related expenses and adjustments, restructuring, impairment, and related charges, claims and litigation charges, and other adjustments. • Adjusted Other Income (Non-GAAP): We define Adjusted Other Income as GAAP other income (expense), net, excluding amortization of acquisition-related intangibles, transaction-related expenses and adjustments, and other adjustments. • Adjusted Interest Expense (Non-GAAP): We define Adjusted Interest Expense as GAAP interest expense, excluding transaction-related expenses and adjustments related to net interest expense incurred from cross-currency swaps used to hedge the changes in the fair value of the Company's foreign currency-denominated notes resulting from changes in benchmark interest rates and foreign currency exchange rates. The foreign currency-denominated notes were previously designated as non-derivative net investment hedges of portions of the Company's net investments in its now-divested European businesses against the effect of exchange rate fluctuations on the translation of foreign currency balances to the U.S. dollar. • Adjusted Income Tax Expense (Non-GAAP): We define Adjusted Income Tax Expense as GAAP income tax benefit (expense), excluding the income tax effects of amortization of acquisition-related intangibles, transaction-related expenses and adjustments, LIFO inventory-related adjustments, gains from antitrust legal settlements, restructuring, impairment, and related charges, claims and litigation charges, and other adjustments. Income tax effects are calculated in accordance with Accounting Standards Codification ("ASC") 740, “Income Taxes,” which is the same accounting principle used by the Company when presenting its GAAP financial results. • Adjusted Earnings (Non-GAAP): We define Adjusted Earnings as GAAP income from continuing operations attributable to McKesson, excluding amortization of acquisition-related intangibles, transaction- related expenses and adjustments, LIFO inventory-related adjustments, gains from antitrust legal settlements, restructuring, impairment, and related charges, claims and litigation charges, other adjustments, as well as the related income tax effects for each of these items, as applicable. • Adjusted Earnings per Diluted Share (Non-GAAP): We define Adjusted Earnings per Diluted Share as GAAP earnings per diluted common share from continuing operations attributable to McKesson, excluding per share impacts of amortization of acquisition-related intangibles, transaction-related expenses and adjustments, LIFO inventory-related adjustments, gains from antitrust legal settlements, restructuring, impairment, and related charges, claims and litigation charges, other adjustments, as well as the related income tax effects for each of these items, as applicable, divided by diluted weighted-average shares outstanding. 1 of 3
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© 2026 McKesson Corporation. All rights reserved.32 Financial Statement Notes SUPPLEMENTAL NON-GAAP FINANCIAL INFORMATION (continued) • 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 amortization of acquisition-related intangibles, transaction-related expenses and adjustments, LIFO inventory-related adjustments, gains from antitrust legal settlements, restructuring, impairment, and related charges, and other adjustments. We define Adjusted Segment Operating Profit Margin as Adjusted Segment Operating Profit (Non-GAAP) divided by GAAP segment revenues. • Adjusted Corporate Expenses (Non-GAAP): We define Adjusted Corporate Expenses as GAAP corporate expenses, net, excluding transaction-related expenses and adjustments, restructuring, impairment, and related charges, claims and litigation charges, and other adjustments. • Adjusted Operating Profit (Non-GAAP): We define Adjusted Operating Profit as GAAP income from continuing operations before interest expense and income taxes, excluding amortization of acquisition- related intangibles, transaction-related expenses and adjustments, LIFO inventory-related adjustments, gains from antitrust legal settlements, restructuring, impairment, and related charges, claims and litigation charges, and other adjustments. The following provides further details regarding the adjustments made to our GAAP financial results to arrive at our Non-GAAP measures as defined above: Amortization of acquisition-related intangibles - Amortization charges for intangible assets directly related to business combinations and the formation of joint ventures. Transaction-related expenses and adjustments - Transaction, integration, and other expenses that are directly related to business combinations, the formation of joint ventures, divestitures, and other transaction-related costs including initial public offering costs. Examples include transaction closing costs, professional service fees, legal fees, severance charges, retention payments and employee relocation expenses, facility or other exit-related expenses, certain fair value adjustments including deferred revenues, contingent consideration and inventory, recoveries of acquisition-related expenses or post-closing expenses, net interest expense impact of hedging foreign currency-denominated notes, bridge loan fees and gains or losses on business combinations, redeemable noncontrolling interests adjustments, and divestitures of businesses that do not qualify as discontinued operations. LIFO inventory-related adjustments - LIFO inventory-related non-cash charges or credit adjustments. Gains from antitrust legal settlements - Net cash proceeds representing the Company’s share of antitrust legal settlements. Restructuring, impairment, and related charges - Restructuring charges that are incurred for programs in which we change our operations, the scope of a business undertaken by our business units, or the manner in which that business is conducted as well as long-lived asset impairments. Such charges may include employee severance, retention bonuses, facility closure or consolidation costs, lease or contract termination costs, asset impairments, accelerated depreciation and amortization, and other related expenses. The restructuring programs may be implemented due to the sale or discontinuation of a product line, reorganization or management structure changes, headcount rationalization, realignment of operations or products, integration of acquired businesses, and/or company-wide cost saving initiatives. The amount and/or frequency of these restructuring charges are not part of our underlying business, which include normal levels of reinvestment in the business. Any credit adjustments due to subsequent changes in estimates are also excluded from adjusted results. Claims and litigation charges - Adjustments to certain of the Company’s reserves, including those related to estimated probable settlements for its controlled substance monitoring and reporting, and opioid- related claims, as well as any applicable income items or credit adjustments due to subsequent changes in estimates. This does not include our legal fees to defend claims, which are expensed as incurred. This also may include charges or credits for general non-operational claims not directly related to our ongoing business. 2 of 3
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© 2026 McKesson Corporation. All rights reserved.33 Financial Statement Notes SUPPLEMENTAL NON-GAAP FINANCIAL INFORMATION (continued) 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 adjusted results from time to time. While not all-inclusive, other adjustments may include: other asset impairments; gains or losses from debt extinguishment; and other similar substantive and/or infrequent items as deemed appropriate. The Company evaluates the aforementioned Non-GAAP measures on a periodic basis and updates the definitions from time to time. The evaluation considers both the quantitative and qualitative aspects of the Company’s presentation of Non-GAAP adjusted results. A reconciliation of McKesson’s GAAP financial results to Non-GAAP financial results is provided in Schedules 2 and 3 of the financial statement tables included with this presentation. • Free Cash Flow (Non-GAAP): We define free cash flow as net cash provided by (used in) operating activities less payments for property, plant, and equipment and capitalized software expenditures, as disclosed in our condensed consolidated statements of cash flows. A reconciliation of McKesson’s GAAP financial results to Free Cash Flow (Non-GAAP) is provided in Schedule 6 of the financial statement tables included with this presentation. The Company believes the presentation of Non-GAAP measures provides useful supplemental information to investors with regard to its operating performance, as well as assists with the comparison of its past financial performance to the Company’s future financial results. Moreover, the Company believes that the presentation of Non-GAAP measures assists investors’ ability to compare its financial results to those of other companies in the same industry. However, the Company's Non-GAAP measures used in this presentation may be defined and calculated differently by other companies in the same industry. The Company internally uses both GAAP and Non-GAAP financial measures in connection with its own financial planning and reporting processes. Management utilizes Non-GAAP financial measures when allocating resources, deploying capital, as well as assessing business performance, and determining employee incentive compensation. The Company conducts its businesses internationally in local currencies, including Canadian dollars, Euro, and British pound sterling. As a result, the comparability of our results reported in U.S. dollars can be affected by changes in foreign currency exchange rates. We believe free cash flow is important to management and useful to investors as a supplemental measure as it indicates the cash flow available for working capital needs, re-investment opportunities, strategic acquisitions, share repurchases, dividend payments, or other strategic uses of cash. Nonetheless, Non-GAAP adjusted results and related Non-GAAP measures disclosed by the Company should not be considered a substitute for, nor superior to, financial results and measures as determined or calculated in accordance with GAAP. 3 of 3