McKesson Corporation earnings

Management highlights

• Fiscal 2026 saw adjusted earnings per diluted share grow 18%, operating cash flow $6.2 billion, and $5.1 billion returned to shareholders. • Added Core Ventures and Prism Vision to oncology and multi-specialty platforms. • Made progress on separating medical surgical solution segment, including financing transactions and Apollo investment. • Completed exit from Norway. • Introduced new reporting segments. • Oncologymulti-specialty platform growth: US Oncology Network added 570 providers, Prism Vision increased providers ~20%. • Biopharma services platform: Supported 3.4 million patients, each full-time employee supported 120 more patients vs prior year. • North American distribution: Launched new Montreal Distribution Center, AI-driven inventory planning.

Guidance

• Fiscal 2027 adjusted earnings per diluted share range $43.80 - $44.60. • North American Pharmaceutical: Revenue +4% - 8%, operating profit +5.5% - 9.5%. • Oncology and multispecialty: Revenue +14.5% - 18.5%, operating profit +13.5% - 17.5%. • Prescription technology solution: Revenue +2.5% - 6.5%, operating profit +11% - 15%. • Medical surgical solutions: Fiscal 2027 revenue +1 - 6%, operating profit flat to +4%. • Free cash flow ~$4.5 - $4.9 billion; plan to repurchase ~$5 billion of shares.

Segment performance

North American Pharmaceutical: Revenues $79.1 billion, +3% y-o-y; Segment operating profit $980 million, +11%. Oncology and multispecialty: Revenues $12.7 billion, +35% y-o-y; Operating profit $385 million, +53%. Prescription technology solution: Revenues $1.5 billion, +12% y-o-y; Operating profit $322 million, +13%. Medical surgical solutions: Revenues $2.9 billion, +1% y-o-y; Operating profit $271 million, -5%.

Analyst Q&A

• Q: Alan Letts on RXTS segment growth and GLP-1 in prior authorization business.

  A: RXTS revenue composition with 3PL ~55%, operating profit strong due to access programs. GLP-1 distribution revenue up 22% y-o-y but down 4% q-o-q, access solutions demand still high.

• Q: Lisa Gill on oncology and multispecialty guidance, weather impact.

  A: Weather in Jan had no full quarter impact. Oncology and multispecialty lapping Prism and Core Ventures acquisitions, organic growth ~13%, guide at upper long-term target range.

• Q: Erin Wright on North American pharmaceutical utilization and specialty products.

  A: Utilization stable, specialty products growing, health systems strong, guide at upper long-term range.

• Q: Brian Tanquillette on GLP in access solutions sustainability.

  A: Distribution and technology solution growth strong, access solutions demand high, category continues to grow.

• Q: Michael Cherney on MSO onboarding CORE Ventures and services expansion.

  A: Expand provider network with value proposition, use technology for efficiency and insights, grow ONTATA and clinical trials engagement.

• Q: Elizabeth Anderson on biosimilar shifts and impact.

  A: Biosimilars win-win-win, Part B channel most attractive, 89 approved, 72 launched, continue to add choice and lower cost.

• Q: Glenn Santangelo on biosimilar transition impact on distribution.

  A: Biosimilars between generics and brands, network effects help drive adoption, create value for manufacturers.

• Q: Daniel Grosslight on free cash flow and M&A in 2027.

  A: 2027 free cash flow guide strong, investing in business for efficiency, capital deployment pillars: growth, return capital to shareholders, maintain investment grade rating, M&A on strategy with good returns.

• Q: Charles Reed on North America Pharma guide and AOI growth.

  A: Lapping large customer and Rite Aid revenue, branded pricing impact, adjusted operating profit growth due to specialty pharmaceuticals growth and operating efficiency.