MCKESSON CORP

Overview of Segment Results:

Segment Revenues:

North American Pharmaceutical

North American Pharmaceutical revenues for the three months ended September 30, 2025 increased $6.5 billion or 8% compared to the same prior year period. Within the segment, sales to U.S. pharmacies and healthcare providers increased $6.4 billion primarily due to higher volumes from retail national account customers, partially offset by branded to generic drug conversions.

North American Pharmaceutical revenues for the six months ended September 30, 2025 increased $22.8 billion or 16% compared to the same prior year period. Within the segment, sales to U.S. pharmacies and healthcare providers increased $22.8 billion primarily due to higher volumes from retail national account customers, partially offset by branded to generic drug conversions.

Oncology & Multispecialty

Oncology & Multispecialty revenues for the three months ended September 30, 2025 increased $2.9 billion or 32% compared to the same prior year period primarily driven by growth in provider solutions due to the addition of providers within practice management and higher specialty pharmaceutical sales.

Oncology & Multispecialty revenues for the six months ended September 30, 2025 increased $4.8 billion or 27% compared to the same prior year period primarily driven by growth in provider solutions due to the addition of providers within practice management and higher specialty pharmaceutical sales.

Prescription Technology Solutions

RxTS revenues for the three months ended September 30, 2025 increased $111 million or 9% compared to the same prior year period due to increased volumes from our third-party logistics and higher technology services revenues.

RxTS revenues for the six months ended September 30, 2025 increased $304 million or 12% compared to the same prior year period due to increased volumes from our third-party logistics and higher technology services revenues.

Medical-Surgical Solutions

Medical-Surgical Solutions revenues for the three months ended September 30, 2025 increased $1 million compared to the same prior year period. Within the segment, sales to ambulatory care customers increased $7 million driven by underlying business growth and other sales increased by $6 million. These increases were partially offset by sales to extended care customers which decreased by $12 million.

Medical-Surgical Solutions revenues for the six months ended September 30, 2025 increased $70 million or 1% compared to the same prior year period. Within the segment, sales to ambulatory care customers increased $66 million driven by underlying business growth and other sales increased by $18 million. These increases were partially offset by sales to extended care customers which decreased by $14 million.

Other Segment Expense, Segment Operating Profit and Corporate Expenses, Net:

(1)Other segment expense, net includes cost of sales, total operating expenses, as well as other income, net, for our reportable segments.

(2)Other segment expense, net for our North American Pharmaceutical segment includes the following:

•a provision for bad debts of $189 million for the six months ended September 30, 2025 and a credit of $203 million for the three and six months ended September 30, 2024 related to the bankruptcy of our customer Rite Aid;

•cash receipts for our share of antitrust legal settlements were immaterial and $63 million for the three months ended September 30, 2025 and 2024, respectively, and $8 million and $153 million for the six months ended September 30, 2025 and 2024, respectively;

•a charge of $593 million for the three and six months ended September 30, 2024 to remeasure the assets and liabilities of the Canadian retail disposal group to fair value less costs to sell, as discussed in Financial Note 2, “Business Acquisitions and Divestitures,” to the accompanying condensed consolidated financial statements included in this Quarterly Report;

•restructuring charges of $63 million and $65 million for the three and six months ended September 30, 2024, respectively, for restructuring initiatives as discussed in Financial Note 3, “Restructuring, Impairment, and Related Charges, Net,” to the accompanying condensed consolidated financial statements included in this Quarterly Report; and

•a charge of $57 million for the six months ended September 30, 2024 related to our estimated liability for opioid-related claims as discussed in Financial Note 11, “Commitments and Contingent Liabilities,” to the accompanying condensed consolidated financial statements included in this Quarterly Report.

(3)Other segment expense, net for our Oncology & Multispecialty segment includes the following:

•a net gain of $51 million for the three and six months ended September 30, 2025 related to the sale of an investment and market decisions; and

•a loss of $43 million for the six months ended September 30, 2024 related to one of the Company’s equity method investments.

(4)Other segment expense, net for our Medical-Surgical Solutions segment for the three and six months ended September 30, 2024 includes restructuring charges of $144 million related to a broad set of initiatives to drive operational efficiencies and increase cost optimization efforts as discussed in Financial Note 3, “Restructuring, Impairment, and Related Charges, Net,” to the accompanying condensed consolidated financial statements included in this Quarterly Report.

(5)Corporate expenses, net includes the following:

•a charge of $50 million for the three and six months ended September 30, 2024 related to the effect of accumulated other comprehensive loss components from our Canadian retail disposal group, as discussed in Financial Note 2, “Business Acquisitions and Divestitures,” to the accompanying condensed consolidated financial statements included in this Quarterly Report;

•a net gain of $95 million for the six months ended September 30, 2024 related to our investments in equity securities of certain U.S. growth stage companies in the healthcare industry, as discussed in Financial Note 10, “Fair Value Measurements,” to the accompanying condensed consolidated financial statements included in this Quarterly Report;

•a net charge of $51 million for the six months ended September 30, 2024 related to our estimated liability for opioid-related claims as discussed in Financial Note 11, “Commitments and Contingent Liabilities,” to the accompanying condensed consolidated financial statements included in this Quarterly Report; and

•restructuring charges of $38 million and $23 million for the three months ended September 30, 2025 and 2024, respectively, and charges of $67 million and $24 million for the six months ended September 30, 2025 and 2024, respectively, for restructuring initiatives as discussed in Financial Note 3, “Restructuring, Impairment, and Related Charges, Net,” to the accompanying condensed consolidated financial statements included in this Quarterly Report.

North American Pharmaceutical

Operating profit for this segment increased for the three months ended September 30, 2025 compared to the same prior year period largely due to prior year remeasurement charges related to our Canadian retail disposal group held for sale, as discussed in Financial Note 2, “Business Acquisitions and Divestitures” to the accompanying condensed consolidated financial statements included in this Quarterly Report and higher pharmaceutical distribution volumes across the segment, partially offset by a prior year credit of $203 million related to the bankruptcy of Rite Aid and a decrease from net cash proceeds received representing our share of antitrust legal settlements.

Operating profit for this segment increased for the six months ended September 30, 2025 compared to the same prior year period primarily due to prior year remeasurement charges related to our Canadian retail disposal group held for sale, as discussed in Financial Note 2, “Business Acquisitions and Divestitures” to the accompanying condensed consolidated financial statements included in this Quarterly Report, higher pharmaceutical distribution volumes across the segment, and a prior year charge of $57 million related to our estimated liability for opioid-related claims. These increases are partially offset by a prior year credit of $203 million and a current year provision for bad debts of $189 million related to the bankruptcy of Rite Aid, a decrease from net cash proceeds received representing our share of antitrust legal settlements, and an increase in operating expenses to support higher volumes.

Oncology & Multispecialty

Operating profit for this segment increased for the three months ended September 30, 2025 compared to the same prior year period primarily due to growth in specialty pharmaceuticals and a net gain of $51 million related to the sale of an investment and market decisions, partially offset by an increase in operating expenses to support higher volumes.

Operating profit for this segment increased for the six months ended September 30, 2025 compared to the same prior year period primarily due to growth in specialty pharmaceuticals, a net gain of $51 million related to the sale of an investment and market decisions, and a prior year loss of $43 million related to one of our equity method investments, partially offset by an increase in operating expenses to support higher volumes.

Prescription Technology Solutions

Operating profit for this segment increased for the three months ended September 30, 2025 compared to the same prior year period driven by increased volumes primarily from growth in our technology services.

Operating profit for this segment increased for the six months ended September 30, 2025 compared to the same prior year period driven by increased volumes primarily from growth in our technology services.

Medical-Surgical Solutions

Operating profit for this segment increased for the three months ended September 30, 2025 compared to the same prior year period primarily due to lower expenses resulting from business rationalization initiatives, partially offset by a decline in the contribution from our ambulatory care and extended care businesses.

Operating profit for this segment increased for the six months ended September 30, 2025 compared to the same prior year period primarily due to lower expenses resulting from business rationalization initiatives, partially offset by a decline in the contribution from our ambulatory care and extended care businesses.

Corporate Expenses, Net

Corporate expenses, net decreased for the three months ended September 30, 2025 compared to the same prior year period primarily due to prior year remeasurement charges related to our Canadian retail disposal group held for sale, as discussed in Financial Note 2, “Business Acquisitions and Divestitures” to the accompanying condensed consolidated financial statements included in this Quarterly Report and a favorable impact to our equity investments and interest income, partially offset by higher restructuring charges compared to prior year.

Six Months Ended September 30, 2025

Corporate expenses, net increased for the six months ended September 30, 2025 compared to the same prior year period primarily due to prior year gains related to our investments in equity securities of certain U.S. growth stage companies in the healthcare industry, higher restructuring charges compared to prior year, partially offset by lower litigation charges in the current year compared to prior year and prior year remeasurement charges related to our Canadian retail disposal group held for sale, as discussed in Financial Note 2, “Business Acquisitions and Divestitures” to the accompanying condensed consolidated financial statements included in this Quarterly Report.