McKesson lifts FY2027 adjusted EPS outlook: $45.60–$46.40

First-half free cash flow increased 131% to $2.575 billion from $1.117 billion a year earlier.

Available on EDGAR 11/04/2026 - 04:07 PM EST Accepted by SEC EDGAR 11/04/2026 - 04:06 PM EST Learn about SEC filing dates

Rhea-AI Filing Summary

McKesson reported fiscal 2027 second-quarter revenue of $111.0 billion, up 8% year over year, and net income attributable to McKesson of $1.218 billion, up 10%. Diluted EPS was $10.44, while non-GAAP adjusted diluted EPS rose 18% to $11.68. Operating cash flow was $3.1 billion and free cash flow was $2.9 billion.

The company raised fiscal 2027 adjusted diluted EPS guidance to $45.60–$46.40 from $44.20–$45.00. It signed an agreement to invest approximately $1.4 billion for an approximately 49% minority interest in Option Care Health, subject to customary closing conditions, including stockholder and regulatory approvals. McKesson completed its acquisition of Precision Medicine Group on November 2, 2026, and signed an agreement extending its pharmaceutical distribution partnership with CVS Health through June 2032.

For the first six months, McKesson returned $3.6 billion to shareholders, including $3.4 billion of common stock repurchases and $198 million of dividend payments. Medical-Surgical Solutions adjusted segment operating profit declined 10% to $225 million.

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Positive

• Moderate pointSecond-quarter revenue reached $111.0 billion, up 8%.
• Moderate pointAdjusted diluted EPS rose 18% to $11.68.
• Moderate pointFirst-half free cash flow increased 131% to $2.575 billion.

Negative

• Moderate pointMedical-Surgical adjusted segment operating profit fell 10% to $225 million.

Filing Explained

The planned separation has $114 million of first-half costs; Apollo’s roughly 13% segment interest generated a separate $282 million remeasurement charge.

The results release says the Medical-Surgical Solutions separation remains planned; if completed, the segment would become an independent company. It reports $114 million of first-half charges tied to the plan.

It also reports that Apollo Funds acquired an approximately 13% minority interest in the segment. Remeasurement of that redeemable interest produced a $282 million charge in the six months ended September 30, 2026, recorded in net income attributable to noncontrolling interests.

8-K Event Classification

2 items: 2.02, 9.01

2 items

Item 2.02 Results of Operations and Financial Condition Financial

Disclosure of earnings results, typically an earnings press release or preliminary financials.

Item 9.01 Financial Statements and Exhibits Exhibits

Financial statements, pro forma financial information, or exhibit attachments filed with this report.

Key Figures

Revenue: $111.0 billion Net income attributable to McKesson: $1.218 billion Diluted EPS: $10.44 +5 more

8 metrics

Revenue $111.0 billion Fiscal 2027 second quarter; up 8% year over year

Net income attributable to McKesson $1.218 billion Fiscal 2027 second quarter; up 10% year over year

Diluted EPS $10.44 Fiscal 2027 second quarter; up 17% year over year

Adjusted Earnings per Diluted Share $11.68 Non-GAAP; fiscal 2027 second quarter; up 18% year over year

Free Cash Flow $2.575 billion Non-GAAP; six months ended September 30, 2026; up 131% year over year

Adjusted Earnings per Diluted Share guidance $45.60 to $46.40 per diluted share Fiscal 2027 full-year guidance; raised from $44.20 to $45.00

Cash returned to shareholders $3.6 billion First six months of fiscal 2027, including $3.4 billion of common stock repurchases and $198 million of dividend payments

Medical-Surgical Solutions adjusted segment operating profit $225 million Fiscal 2027 second quarter; down 10% year over year

Key Terms

Adjusted Earnings per Diluted Share, Free Cash Flow, LIFO inventory-related adjustments, redeemable noncontrolling interests

4 terms

Adjusted Earnings per Diluted Share financial

"Adjusted Earnings per Diluted Share guidance"

Adjusted earnings per diluted share shows a company's profit attributable to each share after accounting for potential new shares (like stock options or convertible securities) and excluding one-time or unusual items that can distort results. Investors use it as a cleaned-up per-share profit measure—like checking a car’s fuel efficiency after ignoring a bad tank of gas—to compare underlying performance over time or across companies, though the adjustments can vary by management.

Free Cash Flow financial

"Free Cash Flow (Non-GAAP)"

Free cash flow is the amount of money a company has left over after paying all its expenses and investing in its business, like buying equipment or updating facilities. It shows how much cash is available to reward shareholders, pay down debt, or save for future growth. This helps investors understand if a company is financially healthy and able to grow.

LIFO inventory-related adjustments financial

"LIFO inventory-related non-cash charges or credit adjustments"

redeemable noncontrolling interests financial

"remeasurement to redemption value of redeemable noncontrolling interests"

A redeemable noncontrolling interest is a minority ownership stake in a company that the holder can force the company to buy back at a set price or under certain conditions. For investors this matters because it creates a future cash obligation and can be treated more like a liability than permanent equity, affecting a company’s reported debt, net income and valuation — think of it as a part-owner who can cash out, forcing the business to pay them.

Earnings Snapshot

Revenue: $111.0 billion · Guidance included

Fiscal 2027 second quarter ended September 30, 2026

Revenue $111.0 billion up 8% year over year

Net income attributable to McKesson $1.218 billion up 10% year over year

Diluted EPS $10.44 up 17% year over year

Adjusted Earnings per Diluted Share $11.68 up 18% year over year

Free Cash Flow $2.947 billion six-month amount up 131% year over year

Guidance

Raised fiscal 2027 Adjusted Earnings per Diluted Share guidance to $45.60 to $46.40 from $44.20 to $45.00.

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What revenue and adjusted EPS did MCK report for its fiscal 2027 second quarter?

McKesson reported $111.0 billion in revenue, up 8% year over year, and non-GAAP adjusted diluted EPS of $11.68, up 18%, for the quarter ended September 30, 2026. GAAP diluted EPS was $10.44.

What is MCK's fiscal 2027 adjusted EPS guidance?

McKesson raised its fiscal 2027 adjusted earnings per diluted share guidance to $45.60 to $46.40, from its previous range of $44.20 to $45.00.

What are the terms of MCK's Option Care Health investment agreement?

McKesson signed a definitive agreement on October 5, 2026, to invest approximately $1.4 billion for an approximately 49% minority interest in Option Care Health. The transaction is subject to customary closing conditions, including approval by Option Care Health stockholders and required regulatory approvals.

Which MCK segments reported lower adjusted operating profit in the second quarter?

Medical-Surgical Solutions was the segment with a year-over-year decline: adjusted segment operating profit was $225 million, down 10%. Adjusted segment operating profit increased 22% in North American Pharmaceutical, 8% in Oncology & Multispecialty, and 18% in Prescription Technology Solutions.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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0000927653false00009276532026-11-042026-11-040000927653us-gaap:CommonStockMember2026-11-042026-11-040000927653mck:A3.125NotesDue2029Member2026-11-042026-11-04

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d)

of the Securities Exchange Act of 1934

Date of report (Date of earliest event reported): November 4, 2026

McKESSON CORPORATION

(Exact Name of Registrant as Specified in Charter)

Delaware

1-13252

94-3207296

(State or Other Jurisdiction of Incorporation)

(Commission File Number)

(I.R.S. Employer Identification No.)

6555 State Hwy 161

Irving, TX 75039

(Address of Principal Executive Offices, and Zip Code)

(972) 446-4800

Registrant’s Telephone Number, Including Area Code

Not Applicable

(Former Name or Former Address, if Changed Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

☐			Written communication pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐			Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐			Pre-commencement communication pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐			Pre-commencement communication pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Common stock, $0.01 par value

MCK

New York Stock Exchange

3.125% Notes due 2029

MCK29

New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2).

Emerging growth company  ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ☐

Item 2.02     Results of Operations and Financial Condition.

On November 4, 2026, McKesson Corporation (the “Company”) reported the Company’s preliminary results for the quarter ended on September 30, 2026 which are attached hereto as Exhibit 99.1.

The information contained in this Form 8-K, including Exhibit 99.1, is furnished to the Securities and Exchange Commission (the “Commission”), but shall not be deemed “filed” with the Commission for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act except as shall be expressly set forth by specific reference in such a filing.

Item 9.01     Financial Statements and Exhibits.

(d) Exhibits.

Exhibit No.						Description
99.1						Earnings release issued by the Company dated November 4, 2026
104						Cover Page Interactive Data File - the cover page iXBRL tags are embedded within the Inline XBRL document

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Date: November 4, 2026

McKesson Corporation
			By:			/s/ Kenny K. Cheung
						Kenny K. Cheung
						Executive Vice President and
						Chief Financial Officer

Exhibit 99.1

McKESSON REPORTS FISCAL 2027 SECOND QUARTER RESULTS

AND RAISES FULL YEAR ADJUSTED EPS GUIDANCE

IRVING, Texas, November 4, 2026 - McKesson Corporation (NYSE:MCK) today announced results for the second quarter ended September 30, 2026.

Second Quarter Highlights:

•Consolidated revenues of $111.0 billion increased 8%.

•Earnings per diluted share of $10.44 increased $1.52.

•Adjusted Earnings per Diluted Share of $11.68 increased 18%.

•Generated $3.1 billion of cash flow from operations and $2.9 billion of Free Cash Flow.

Fiscal 2027 Full Year Outlook:

•Raised Adjusted Earnings per Diluted Share guidance range to $45.60 to $46.40, from the previous range of $44.20 to $45.00.

•Fiscal 2027 Adjusted Earnings per Diluted Share guidance range indicates 17% to 19% growth compared to the prior year.

•The Company does not forecast GAAP earnings per diluted share1.

“McKesson delivered another quarter of strong results, reflecting operational strength in our core business segments and disciplined execution across the enterprise,” said Brian Tyler, chair and chief executive officer. “We continue to invest strategically to advance healthcare outcomes and create long-term value. We further strengthened our portfolio through transactions that will expand our capabilities and deepen our presence in key growth areas, while maintaining our commitment to financial discipline. We are confident in our ability to leverage differentiated solutions and create value for customers, partners, patients, and shareholders. As we close out a strong first half of our fiscal year, I want to thank Team McKesson for their unwavering commitment to excellence and for the impact they make across healthcare every day.”

Fiscal 2027 Second Quarter Result Summary

						Second Quarter																		Year-to-Date
($ in millions, except per share amounts)						FY27						FY26						% Change						FY27						FY26						% Change
Revenues						$	110,957					$	103,150					8						$	216,337					$	200,977					8
Net income attributable to McKesson Corporation						1,218						1,110						10						1,832						1,894						(3)
Adjusted Earnings2						1,363						1,227						11						2,546						2,264						12
Earnings per diluted common share attributable to McKesson Corporation						10.44						8.92						17						15.53						15.16						2
Adjusted Earnings per Diluted Share2						11.68						9.86						18						21.59						18.12						19
1See below under "Fiscal 2027 Outlook" for full explanation 2Adjusted results in this earnings release are non-GAAP financial measures; refer to the accompanying definitions and reconciliation schedules

Second quarter revenues were $111.0 billion, an increase of 8% from a year ago, driven by growth in the North American Pharmaceutical and Oncology & Multispecialty segments due to increased prescription volumes and distribution of specialty products, partially offset by lower contributions from branded pharmaceuticals.

Second quarter earnings per diluted share was $10.44 compared to $8.92 a year ago, an increase of $1.52.

Second quarter Adjusted Earnings per Diluted Share was $11.68 compared to $9.86 a year ago, an increase of 18%, driven by strong operational growth across the North American Pharmaceutical, Oncology & Multispecialty, and Prescription Technology Solutions segments, and a lower share count.

During the three months ended September 30, 2026, McKesson generated cash from operations of $3.1 billion, and invested $123 million in capital expenditures, resulting in Free Cash Flow of $2.9 billion. During the first six months of the fiscal year, McKesson generated cash from operations of $2.9 billion, and invested $275 million in capital expenditures, resulting in Free Cash Flow of $2.6 billion.

For the first six months of the fiscal year, McKesson returned $3.6 billion of cash to shareholders, which included $3.4 billion of common stock repurchases and $198 million of dividend payments.

Business Highlights

•McKesson signed an agreement to extend its pharmaceutical distribution partnership with CVS Health through June 2032.

•On October 5, 2026, McKesson signed a definitive agreement to invest approximately $1.4 billion for a minority interest of approximately 49% in Option Care Health, Inc. This transaction aligns with McKesson’s strategy in supporting the delivery of complex specialty therapies and expanding patient access through community-based care. The transaction is subject to customary closing conditions, including approval by Option Care Health’s stockholders and the receipt of required regulatory approvals.

•On November 2, 2026, McKesson completed the acquisition of Precision Medicine Group, LLC, a global provider of clinical research and biopharma commercialization service. This acquisition represents a meaningful milestone in advancing its strategy in oncology, multispecialty, and biopharma services.

•On November 2, 2026, PRISM Vision Group expanded its network with the addition of Spectrum Vision Partners, adding more than 150 providers and bringing its total provider network to more than 350.

North American Pharmaceutical Segment

•Revenues were $91.4 billion, an increase of 6%, driven by increased prescription transaction volumes, including higher volumes from specialty products to health systems and strategic accounts, partially offset by lower contributions from branded pharmaceuticals.

•Segment Operating Profit was $1.1 billion. Adjusted Segment Operating Profit was $1.0 billion, an increase of 22%, driven by growth in the distribution of specialty products to health systems and strategic accounts.

Oncology & Multispecialty Segment

•Revenues were $15.0 billion, an increase of 24%, driven by growth in provider solutions and specialty distribution.

•Segment Operating Profit was $352 million. Adjusted Segment Operating Profit was $427 million, an increase of 8%, driven by growth in provider solutions and specialty distribution.

Prescription Technology Solutions Segment

•Revenues were $1.5 billion, an increase of 10%, driven by increased prescription volumes in third-party logistics and access solutions, partially offset by lower contributions from hub dispensing services.

•Segment Operating Profit was $275 million. Adjusted Segment Operating Profit was $307 million, an increase of 18%, driven by higher demand for access solutions.

Medical-Surgical Solutions Segment

•Revenues were $3.1 billion, an increase of 5%, driven by growth across the extended and ambulatory care channels.

•Segment Operating Profit was $164 million. Adjusted Segment Operating Profit was $225 million, a decrease of 10%, driven by lower contributions from the ambulatory care channel due to product mix, partially offset by growth in the extended care channel.

Fiscal 2027 Outlook

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.

McKesson is raising its fiscal 2027 Adjusted Earnings per Diluted Share guidance to $45.60 to $46.40 from the previous range of $44.20 to $45.00.

“The raise in fiscal 2027 Adjusted Earnings per Diluted Share guidance is underpinned by the strength in our business and the confidence we have in our ability to execute consistently,” said Kenny Cheung, executive vice president and chief financial officer. “We are committed to building towards the future through disciplined capital deployment and strategic investments.”

Additional modeling considerations will be provided in the earnings call presentation.

Conference Call Details

McKesson has scheduled a conference call for today, Wednesday, November 4, 2026, at 4:30 PM ET to discuss the company’s financial results. The audio webcast of the conference call will be available live and archived on McKesson's Investor Relations website at investor.mckesson.com.

Upcoming Investor Events

McKesson management will participate in the following investor events:

•Jefferies Global Healthcare Conference, November 17, 2026

•Evercore Healthcare Conference, December 1, 2026

•J.P. Morgan Healthcare Conference, January 11-14, 2027

A complete listing of public events open to the investment community will be available on McKesson's Investor Relations website, including details, updates, and a link to each webcast.

Non-GAAP Financial Measures

GAAP refers to the U.S. generally accepted accounting principles. This press release includes GAAP financial measures as well as Non-GAAP financial measures, including Adjusted Gross Profit, Adjusted Operating Expenses, Adjusted Other Income, Adjusted Interest Expense, Adjusted Income Tax Expense, Adjusted Earnings, Adjusted Earnings per Diluted Share, Adjusted Segment Operating Profit, Adjusted Segment Operating Profit Margin, Adjusted Corporate Expenses, Adjusted Operating Profit, and Free Cash Flow which are financial measures not calculated in accordance with GAAP. Refer to the “Supplemental Non-GAAP Financial Information” section of the accompanying financial statement tables for the definitions and usefulness of the company’s Non-GAAP financial measures and the attached schedules for reconciliations of the differences between the Non-GAAP financial measures and their most directly comparable GAAP financial measures.

Cautionary Statements

This earnings release 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 and the closing of our investment in Option Care Health, Inc., each of which is subject to 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.

About McKesson Corporation

McKesson Corporation is a diversified healthcare services leader dedicated to advancing health outcomes for patients everywhere. Our teams partner with biopharma companies, care providers, pharmacies, manufacturers, governments, and others to deliver insights, products and services to help make quality care more accessible and affordable. Learn more about how McKesson is impacting virtually every aspect of healthcare at McKesson.com and read Stories & Insights.

We routinely use our website, investor.mckesson.com, to post information that may be material to investors, such as business developments, earnings, and financial performance, as well as presentation materials and details for upcoming and past events.

Contacts:

Investors

Investors@McKesson.com

Media Relations

MediaRelations@McKesson.com

Schedule 1

McKESSON CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (GAAP)

(unaudited)

(in millions, except per share amounts)

			Three Months Ended September 30,																		Six Months Ended September 30,
			2026						2025						Change						2026						2025						Change
Revenues			$	110,957					$	103,150					8		%				$	216,337					$	200,977					8		%
Cost of sales			(107,001)						(99,608)						7						(208,696)						(194,156)						7
Gross profit			3,956						3,542						12						7,641						6,821						12
Selling, distribution, general, and administrative expenses			(2,269)						(2,074)						9						(4,533)						(4,270)						6
Claims and litigation charges, net			2						2						—						36						2						—
Restructuring, impairment, and related charges, net			(85)						(63)						35						(221)						(110)						101
Total operating expenses			(2,352)						(2,135)						10						(4,718)						(4,378)						8
Operating income			1,604						1,407						14						2,923						2,443						20
Other income (expense), net			63						62						2						129						126						2
Interest expense			(105)						(74)						42						(182)						(123)						48
Income before income taxes			1,562						1,395						12						2,870						2,446						17
Income tax expense			(266)						(232)						15						(542)						(452)						20
Net income			1,296						1,163						11						2,328						1,994						17
Net income attributable to noncontrolling interests			(78)						(53)						47						(496)						(100)						396
Net income attributable to McKesson Corporation			$	1,218					$	1,110					10		%				$	1,832					$	1,894					(3)		%
Earnings per common share attributable to McKesson Corporation (a)
Diluted			$	10.44					$	8.92					17		%				$	15.53					$	15.16					2		%
Basic			$	10.47					$	8.95					17		%				$	15.59					$	15.22					2		%
Dividends declared per common share			$	0.94					$	0.82					15		%				$	1.76					$	1.53					15		%
Weighted-average common shares outstanding
Diluted			116.7						124.4						(6)		%				117.9						124.9						(6)		%
Basic			116.3						124.0						(6)						117.5						124.5						(6)		%

(a)Certain computations may reflect rounding adjustments.

Any percentage changes displayed above which are not meaningful are displayed as zero percent.

Refer to our applicable filings with the SEC for additional disclosures including our Quarterly Reports on Form 10-Q for fiscal 2027 and 2026 as well as our

Annual Report on Form 10-K for fiscal 2026.

Schedule 2

McKESSON CORPORATION

RECONCILIATION OF GAAP OPERATING RESULTS TO ADJUSTED RESULTS (NON-GAAP)

(unaudited)

(in millions, except per share amounts)

			Three Months Ended September 30,																		Six Months Ended September 30,
			2026						2025						Change						2026						2025						Change
Net income (GAAP)			$	1,296					$	1,163					11		%				$	2,328					$	1,994					17		%
Net income attributable to noncontrolling interests (GAAP)			(78)						(53)						47						(496)						(100)						396
Net income attributable to McKesson Corporation (GAAP)			1,218						1,110						10						1,832						1,894						(3)
Pre-tax adjustments:
Amortization of acquisition-related intangibles			71						80						(11)						145						130						12
Transaction-related expenses and adjustments (1)			88						34						159						196						120						63
LIFO inventory-related adjustments			(3)						(11)						(73)						(5)						(18)						(72)
Gains from antitrust legal settlements			(50)						—						—						(56)						(8)						600
Restructuring, impairment, and related charges, net (4)			85						63						35						221						110						101
Claims and litigation charges, net			(2)						(2)						—						(36)						(2)						—
Other adjustments, net (5)			(2)						5						(140)						(8)						166						(105)
Income tax effect on pre-tax adjustments			(45)						(41)						10						(109)						(116)						(6)
Net income attributable to noncontrolling interests effect on pre-tax adjustments and redeemable noncontrolling interests adjustments (2) (3)			3						(11)						127						366						(12)						—
Adjusted Earnings (Non-GAAP)			$	1,363					$	1,227					11		%				$	2,546					$	2,264					12		%
Earnings per diluted common share attributable to McKesson Corporation (GAAP) (a)			$	10.44					$	8.92					17		%				$	15.53					$	15.16					2		%
After-tax adjustments:
Amortization of acquisition-related intangibles			0.40						0.41						(2)						0.80						0.70						14
Transaction-related expenses and adjustments			0.68						0.21						224						4.56						0.80						470
LIFO inventory-related adjustments			(0.02)						(0.07)						(71)						(0.03)						(0.11)						(73)
Gains from antitrust legal settlements			(0.32)						—						—						(0.35)						(0.05)						600
Restructuring, impairment, and related charges, net			0.53						0.37						43						1.36						0.65						109
Claims and litigation charges, net			(0.02)						(0.02)						—						(0.23)						(0.02)						—
Other adjustments, net			(0.01)						0.04						(125)						(0.05)						0.99						(105)
Adjusted Earnings per Diluted Share (Non-GAAP) (a)			$	11.68					$	9.86					18		%				$	21.59					$	18.12					19		%
Diluted weighted-average common shares outstanding			116.7						124.4						(6)		%				117.9						124.9						(6)		%

(a)Certain computations may reflect rounding adjustments.

Any percentage changes displayed above which are not meaningful are displayed as zero percent.

Refer to the section entitled "Financial Statement Notes" of this release.

For more information relating to the Adjusted Earnings (Non-GAAP) and Adjusted Earnings per Diluted Share (Non-GAAP) definitions, refer to the section entitled “Supplemental Non-GAAP Financial Information” of this release.

Schedule 2 (continued)

McKESSON CORPORATION

RECONCILIATION OF GAAP OPERATING RESULTS TO ADJUSTED RESULTS (NON-GAAP)

(unaudited)

(in millions)

			Three Months Ended September 30,																		Six Months Ended September 30,
			2026						2025						Change						2026						2025						Change
Gross profit (GAAP)			$	3,956					$	3,542					12		%				$	7,641					$	6,821					12		%
Pre-tax adjustments:
LIFO inventory-related adjustments			(3)						(11)						(73)						(5)						(18)						(72)
Gains from antitrust legal settlements			(50)						—						—						(56)						(8)						600
Other adjustments, net			—						3						(100)						—						3						(100)
Adjusted Gross Profit (Non-GAAP)			$	3,903					$	3,534					10		%				$	7,580					$	6,798					12		%
Total operating expenses (GAAP)			$	(2,352)					$	(2,135)					10		%				$	(4,718)					$	(4,378)					8		%
Pre-tax adjustments:
Amortization of acquisition-related intangibles			71						80						(11)						145						130						12
Transaction-related expenses and adjustments (1)			86						28						207						192						109						76
Restructuring, impairment, and related charges, net (4)			85						63						35						221						110						101
Claims and litigation charges, net			(2)						(2)						—						(36)						(2)						—
Other adjustments, net (5)			(2)						2						(200)						(8)						163						(105)
Adjusted Operating Expenses (Non-GAAP)			$	(2,114)					$	(1,964)					8		%				$	(4,204)					$	(3,868)					9		%
Interest expense (GAAP)			$	(105)					$	(74)					42		%				$	(182)					$	(123)					48		%
Pre-tax adjustments:
Transaction-related expenses and adjustments			2						6						(67)						4						11						(64)
Adjusted Interest Expense (Non-GAAP)			$	(103)					$	(68)					51		%				$	(178)					$	(112)					59		%
Income tax expense (GAAP)			$	(266)					$	(232)					15		%				$	(542)					$	(452)					20		%
Tax adjustments:
Amortization of acquisition-related intangibles			(15)						(17)						(12)						(33)						(30)						10
Transaction-related expenses and adjustments (1)			(22)						(8)						175						(44)						(21)						110
LIFO inventory-related adjustments			1						3						(67)						1						5						(80)
Gains from antitrust legal settlements			13						—						—						15						2						650
Restructuring, impairment, and related charges, net (4)			(22)						(17)						29						(58)						(29)						100
Claims and litigation charges, net			—						—						—						9						—						—
Other adjustments, net (5)			—						(2)						(100)						1						(43)						102
Adjusted Income Tax Expense (Non-GAAP)			$	(311)					$	(273)					14		%				$	(651)					$	(568)					15		%

Any percentage changes displayed above which are not meaningful are displayed as zero percent.

Refer to the section entitled "Financial Statement Notes" of this release.

For more information relating to the 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 release.

Schedule 3

McKESSON CORPORATION

RECONCILIATION OF GAAP SEGMENT OPERATING RESULTS TO ADJUSTED RESULTS (NON-GAAP)

(unaudited)

(in millions)

			Three Months Ended September 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			$	91,360					$	—					$	91,360					$	86,481					$	—					$	86,481																													6		%				6		%
Oncology & Multispecialty			14,980						—						14,980						12,044						—						12,044																														24						24
Prescription Technology Solutions			1,520						—						1,520						1,376						—						1,376																														10						10
Medical-Surgical Solutions			3,097						—						3,097						2,947						—						2,947																														5						5
Other			—						—						—						302						—						302																														(100)						(100)
Revenues			$	110,957					$	—					$	110,957					$	103,150					$	—					$	103,150																													8		%				8		%
OPERATING PROFIT
North American Pharmaceutical			$	1,087					$	(47)					$	1,040					$	852					$	(1)					$	851																													28		%				22		%
Oncology & Multispecialty			352						75						427						332						65						397																														6						8
Prescription Technology Solutions (4)			275						32						307						244						17						261																														13						18
Medical-Surgical Solutions (1) (4)			164						61						225						220						29						249																														(25)						(10)
Other			—						—						—						28						(3)						25																														(100)						(100)
Subtotal			1,878						121						1,999						1,676						107						1,783																														12						12
Corporate expenses, net (1) (4)			(211)						64						(147)						(207)						56						(151)																														2						(3)
Income before interest expense and income taxes			$	1,667					$	185					$	1,852					$	1,469					$	163					$	1,632																													13		%				13		%
OPERATING PROFIT AS A % OF REVENUES
North American Pharmaceutical			1.19		%										1.14		%				0.99		%										0.98		%																												20		bp				16		bp
Oncology & Multispecialty			2.35												2.85						2.76												3.30																														(41)						(45)
Prescription Technology Solutions			18.09												20.20						17.73												18.97																														36						123
Medical-Surgical Solutions			5.30												7.27						7.47												8.45																														(217)						(118)
Other			—												—						9.27												8.28																														(927)						(828)

Any percentage changes displayed above which are not meaningful are displayed as zero percent.

Refer to the section entitled "Financial Statement Notes" of this release.

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 Financial Information” of this release.

Schedule 3 (continued)

McKESSON CORPORATION

RECONCILIATION OF GAAP SEGMENT OPERATING RESULTS TO ADJUSTED RESULTS (NON-GAAP)

(unaudited)

(in millions)

			Six Months Ended September 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			$	178,133					$	—					$	178,133					$	169,210					$	—					$	169,210																													5		%				5		%
Oncology & Multispecialty			29,202						—						29,202						22,702						—						22,702																														29						29
Prescription Technology Solutions			3,086						—						3,086						2,810						—						2,810																														10						10
Medical-Surgical Solutions			5,916						—						5,916						5,648						—						5,648																														5						5
Other			—						—						—						607						—						607																														(100)						(100)
Revenues			$	216,337					$	—					$	216,337					$	200,977					$	—					$	200,977																													8		%				8		%
OPERATING PROFIT
North American Pharmaceutical (5)			$	1,990					$	(56)					$	1,934					$	1,446					$	154					$	1,600																													38		%				21		%
Oncology & Multispecialty			677						155						832						544						140						684																														24						22
Prescription Technology Solutions (4)			501						109						610						497						33						530																														1						15
Medical-Surgical Solutions (1) (4)			286						134						420						441						52						493																														(35)						(15)
Other			—						—						—						41						(3)						38																														(100)						(100)
Subtotal			3,454						342						3,796						2,969						376						3,345																														16						13
Corporate expenses, net (1) (4)			(402)						111						(291)						(400)						111						(289)																														1						1
Income before interest expense and income taxes			$	3,052					$	453					$	3,505					$	2,569					$	487					$	3,056																													19		%				15		%
OPERATING PROFIT AS A % OF REVENUES
North American Pharmaceutical			1.12		%										1.09		%				0.85		%										0.95		%																												27		bp				14		bp
Oncology & Multispecialty			2.32												2.85						2.40												3.01																														(8)						(16)
Prescription Technology Solutions			16.23												19.77						17.69												18.86																														(146)						91
Medical-Surgical Solutions			4.83												7.10						7.81												8.73																														(298)						(163)
Other			—												—						6.75												6.26																														(675)						(626)

Any percentage changes displayed above which are not meaningful are displayed as zero percent.

Refer to the section entitled "Financial Statement Notes" of this release.

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 Financial Information” of this release.

Schedule 4

McKESSON CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

(unaudited)

(in millions, except per share amounts)

			September 30, 2026						March 31, 2026
ASSETS
Current assets
Cash and cash equivalents			$	6,528					$	3,975
Receivables, net			30,806						27,985
Inventories, net			28,217						24,207
Prepaid expenses and other			1,134						1,043
Total current assets			66,685						57,210
Property, plant, and equipment, net			2,665						2,668
Operating lease right-of-use assets			1,937						2,058
Goodwill			11,272						11,316
Intangible assets, net			3,942						4,079
Other non-current assets			5,822						4,992
Total assets			$	92,323					$	82,323
LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS, AND DEFICIT
Current liabilities
Drafts and accounts payable			$	67,761					$	59,973
Current portion of long-term debt			794						1,267
Current portion of operating lease liabilities			286						287
Other accrued liabilities			5,555						5,490
Total current liabilities			74,396						67,017
Long-term debt			8,414						5,259
Long-term deferred tax liabilities			1,457						1,330
Long-term operating lease liabilities			1,667						1,801
Long-term litigation liabilities			4,563						5,091
Other non-current liabilities			2,842						2,659
Redeemable noncontrolling interests			2,563						943
McKesson Corporation stockholders’ deficit
Preferred stock, $0.01 par value, 100 shares authorized, no shares issued or outstanding			—						—
Common stock, $0.01 par value, 800 shares authorized, 280 shares issued at September 30, 2026 and March 31, 2026			3						3
Additional paid-in capital			8,907						8,284
Retained earnings			23,916						22,291
Accumulated other comprehensive loss			(768)						(745)
Treasury shares, at cost, 165 and 160 shares at September 30, 2026 and March 31, 2026, respectively			(36,012)						(32,005)
Total McKesson Corporation stockholders’ deficit			(3,954)						(2,172)
Noncontrolling interests			375						395
Total deficit			(3,579)						(1,777)
Total liabilities, redeemable noncontrolling interests, and deficit			$	92,323					$	82,323

Schedule 5

McKESSON CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited)

(in millions)

			Six Months Ended September 30,
			2026						2025
OPERATING ACTIVITIES
Net income			$	2,328					$	1,994
Adjustments to reconcile to net cash used in operating activities:
Depreciation			139						124
Amortization			253						221
Asset impairment charges			46						4
Deferred taxes			18						(41)
Credits associated with last-in, first-out inventory method			(5)						(18)
Non-cash operating lease expense			152						140
Gain from sales of businesses and investments			(24)						(85)
Provision for bad debts			83						232
Other non-cash items			145						169
Changes in assets and liabilities:
Receivables			(2,850)						(2,296)
Inventories			(4,032)						(3,199)
Drafts and accounts payable			7,797						5,170
Operating lease liabilities			(148)						(152)
Taxes			(478)						121
Litigation liabilities			(529)						(657)
Other			(45)						(225)
Net cash provided by operating activities			2,850						1,502
INVESTING ACTIVITIES
Payments for property, plant, and equipment			(177)						(217)
Capitalized software expenditures			(98)						(168)
Acquisitions, net of cash, cash equivalents, and restricted cash acquired			(23)						(3,389)
Proceeds from sales of businesses and investments, net			29						133
Other			(75)						53
Net cash used in investing activities			(344)						(3,588)
FINANCING ACTIVITIES
Proceeds from short-term borrowings			—						2,275
Repayments of short-term borrowings			—						(2,275)
Proceeds from issuances of long-term debt			3,215						1,990
Repayments of long-term debt			(505)						(2)
Common stock transactions:
Issuances			56						50
Share repurchases			(3,424)						(1,399)
Dividends paid			(198)						(179)
Sale of noncontrolling interest in Medical-Surgical Solutions, net			1,238						—
Other			(324)						(245)
Net cash provided by financing activities			58						215
Effect of exchange rate changes on cash, cash equivalents, and restricted cash			(13)						24
Net increase (decrease) in cash, cash equivalents, and restricted cash			2,551						(1,847)
Cash, cash equivalents, and restricted cash at beginning of period			4,068						5,956
Cash, cash equivalents, and restricted cash at end of period			6,619						4,109
Less: Restricted cash at end of period included in Prepaid expenses and other			(91)						(105)
Cash and cash equivalents at end of period			$	6,528					$	4,004

Schedule 6

McKESSON CORPORATION

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,
			2026						2026						2025						Change
GAAP CASH FLOW CATEGORIES
Net cash provided by operating activities			$	3,070					$	2,850					$	1,502					90		%
Net cash used in investing activities			(130)						(344)						(3,588)						(90)
Net cash provided by (used in) financing activities			(1,574)						58						215						(73)
Effect of exchange rate changes on cash, cash equivalents, and restricted cash			(3)						(13)						24						(154)
Net increase (decrease) in cash, cash equivalents, and restricted cash			$	1,363					$	2,551					$	(1,847)					238		%
FREE CASH FLOW (NON-GAAP)
Net cash provided by operating activities			$	3,070					$	2,850					$	1,502					90		%
Payments for property, plant, and equipment			(65)						(177)						(217)						(18)
Capitalized software expenditures			(58)						(98)						(168)						(42)
Free Cash Flow (Non-GAAP)			$	2,947					$	2,575					$	1,117					131		%

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 Financial Information” of this release.

1) Amounts for the three months ended September 30, 2026 were derived using fiscal 2027 year-to-date Net cash provided by operating activities, Net cash used in investing activities, Net cash provided by (used in) financing activities, Effect of exchange rate changes on cash and cash equivalents, and restricted cash, Payments for property, plant and equipment, and Capitalized software expenditures, less the comparative amounts for the three months ended June 30, 2026 of fiscal 2027.

1 of 1

McKESSON CORPORATION

FINANCIAL STATEMENT NOTES

1.Transaction-related expenses and adjustments for the three months and six months ended September 30, 2026 include pre-tax charges of $46 million ($34 million after-tax) and $114 million ($84 million after-tax), respectively, 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 and six months ended September 30, 2026 include a credit of $11 million and charge of $282 million, respectively, within Medical-Surgical Solutions, related to the remeasurement to redemption value of redeemable noncontrolling interests arising from the acquisition 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 and six months ended September 30, 2026 include a pre-tax and after-tax charge of $28 million and $109 million, respectively, within Oncology & Multispecialty, related to the remeasurement of redeemable noncontrolling interests to redemption value. 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.

4.Restructuring, impairment, and related charges, net for the three and six months ended September 30, 2026 includes pre-tax charges of $85 million ($63 million after-tax) and $221 million ($163 million after-tax), respectively, primarily within Prescription Technology Solutions, Corporate Expenses, net, and Medical-Surgical Solutions. The three and six months ended September 30, 2025 includes pre-tax charges of $63 million ($46 million after-tax) and $110 million ($81 million after-tax), respectively, 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 six months ended September 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 bankruptcy proceedings, and is therefore excluded from the determination of our adjusted results (Non-GAAP). This charge represents the remaining trade accounts receivable balances due from 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 adjusted results (Non-GAAP) provided in Schedule 2 of the accompanying financial statement tables.

1 of 3

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 press release.

•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 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 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.

•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.

2 of 3

SUPPLEMENTAL NON-GAAP FINANCIAL INFORMATION (continued)

•Adjusted Operating Profit (Non-GAAP): We define Adjusted Operating Profit as GAAP income 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.

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 press release.

•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 press release.

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SUPPLEMENTAL NON-GAAP FINANCIAL INFORMATION (continued)

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 the press tables 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.

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