MCKESSON CORP

Previous wording

We implemented a new segment reporting structure commencing in the second quarter of fiscal 2026, which resulted in four reportable segments: North American Pharmaceutical, Oncology & Multispecialty, Prescription Technology Solutions (“RxTS”), and Medical-Surgical Solutions. Our Norwegian operations are included in Other. All prior segment information has been recast to reflect the Company’s new segment structure and current period presentation. Our organizational structure also includes Corporate, which consists of income and expenses associated with administrative functions and projects, as well as the results of certain investments. The factors for determining the reportable segments include the manner in which management evaluates the performance of the Company combined with the nature of individual business activities. We evaluate the performance of our operating segments on a number of measures, including revenues and operating profit before interest expense and income taxes.

Current wording

We implemented a new segment reporting structure commencing in the second quarter of fiscal 2026, which resulted in four reportable segments: North American Pharmaceutical, Oncology & Multispecialty, Prescription Technology Solutions (“RxTS”), and Medical-Surgical Solutions. Our Norwegian operations are included in Other. All prior segment information has been recast to reflect our new segment structure and current period presentation. Our organizational structure also includes Corporate, which consists of income and expenses associated with administrative functions and projects, as well as the results of certain investments. The factors for determining the reportable segments include the manner in which management evaluates the performance of the Company combined with the nature of individual business activities. We evaluate the performance of our operating segments on a number of measures, including revenues and operating profit before interest expense and income taxes.

Previous wording

Our Norwegian operations, which provide distribution and services to wholesale and retail customers in Norway where we own, partner, or franchise with retail pharmacies, were previously included in the International reportable segment and are now included in Other. During the six months ended September 30, 2025, we entered into a definitive agreement to sell our businesses in Norway, and classified the assets and liabilities as held for sale (“Norway disposal group”). The transaction is subject to customary closing conditions, including receipt of required regulatory approvals. Refer to Financial Note 2, “Business Acquisitions and Divestitures,” for more information.

Current wording

Our Norwegian operations, which provide distribution and services to wholesale and retail customers in Norway where we own, partner, or franchise with retail pharmacies, were previously included in the former International reportable segment, but are now included in Other. During the nine months ended December 31, 2025, we entered into a definitive agreement to sell our businesses in Norway, and classified the assets and liabilities as held for sale (“Norway disposal group”). On January 30, 2026, we completed the sale of our Norway disposal group. Refer to Financial Note 2, “Business Acquisitions and Divestitures,” to the accompanying condensed consolidated financial statements in this Quarterly Report for additional information.

Previous wording

On April 1, 2025, we completed the acquisition of a controlling interest in PRISM Vision, a leading provider of general ophthalmology and retina administrative services. We acquired an 80% interest in PRISM Vision for $871 million in cash and prior owners, including management and physicians in PRISM Vision practices, retained a 20% ownership interest. As of the acquisition date, the financial results of PRISM Vision are reported within our Oncology & Multispecialty segment.

Current wording

On April 1, 2025, we completed the acquisition of a controlling interest in PRISM Vision, a leading provider of general ophthalmology and retina administrative services. We acquired an 80% interest in PRISM Vision for $875 million in cash and prior owners, including management and physicians in PRISM Vision practices, retained a 20% ownership interest. As of the acquisition date, the financial results of PRISM Vision are reported within our Oncology & Multispecialty segment.

Previous wording

The following summary provides highlights and key factors that impacted our business, operating results, financial condition, and liquidity for the three and six months ended September 30, 2025:

Current wording

The following summary provides highlights and key factors that impacted our business, operating results, financial condition, and liquidity for the three and nine months ended December 31, 2025:

Previous wording

•For the three months ended September 30, 2025 compared to the prior year, revenues increased by 10%, gross profit increased by 9%, total operating expenses decreased by 20%, and other income, net increased by $28 million.

Current wording

•For the three months ended December 31, 2025 compared to the prior year, revenues increased by 11%, gross profit increased by 12%, total operating expenses were flat, and other income, net increased by 7%.

Previous wording

•For the six months ended September 30, 2025 compared to the prior year, revenues increased by 16%, gross profit increased by 7%, total operating expenses decreased by 9%, and other income, net decreased by $38 million. Refer to the “Overview of Consolidated Results” section below for an analysis of these changes;

Current wording

•For the nine months ended December 31, 2025 compared to the prior year, revenues increased by 15%, gross profit increased by 8%, total operating expenses decreased by 6%, and other income, net decreased by 14%. Refer to the “Overview of Consolidated Results” section below for an analysis of these changes;

Previous wording

•Diluted earnings per common share attributable to McKesson Corporation increased to $8.92 from $1.87 for the three months ended September 30, 2025 and increased to $15.16 from $8.89 for the six months ended September 30, 2025 compared to the respective prior year periods;

Current wording

•Diluted earnings per common share attributable to McKesson Corporation increased to $9.59 from $6.95 for the three months ended December 31, 2025 and increased to $24.73 from $15.80 for the nine months ended December 31, 2025 compared to the respective prior year periods;

Previous wording

•On April 1, 2025, we completed the acquisition of a controlling interest in PRISM Vision for $871 million in cash, as discussed in further detail in the“Business Acquisitions and Divestitures” section above;

Current wording

•On April 1, 2025, we completed the acquisition of a controlling interest in PRISM Vision for $875 million in cash, as discussed in further detail in the“Business Acquisitions and Divestitures” section above;

Previous wording

•For the six months ended September 30, 2025, we recorded a provision for bad debts of $189 million related to the bankruptcy of our customer, Rite Aid Corporation (including certain of its subsidiaries, “Rite Aid”);

Current wording

•We recorded an immaterial net charge of $29 million for the nine months ended December 31, 2025 related to the bankruptcy of our customer, Rite Aid Corporation (including certain of its subsidiaries, “Rite Aid”) as discussed further in the“Overview of Consolidated Results” section below;

Previous wording

•During the six months ended September 30, 2025, we returned $1.6 billion of cash to shareholders through $1.4 billion of common stock repurchases in open market transactions and $179 million of dividend payments. The total remaining authorization outstanding for repurchases of the Company’s common stock at September 30, 2025 was $6.1 billion; and

Current wording

•During the nine months ended December 31, 2025, we returned $2.4 billion of cash to shareholders through $2.1 billion of common stock repurchases in open market transactions and $280 million of dividend payments. The total remaining authorization outstanding for repurchases of the Company’s common stock at December 31, 2025 was $5.4 billion; and

Previous wording

As described in “Item 1. Government Regulation” and “Item 1A - Risk Factors” in Part I of our 2025 Annual Report, our industry is highly regulated and is subject to risks and uncertainty caused by the volume and speed of changes to regulatory policies. Changes in U.S. federal regulatory posture and law may result in significant changes in healthcare policy, government funding of healthcare costs, and other laws affecting our operations, but the ultimate outcomes are difficult to predict.

Current wording

As described in “Item 1. Government Regulation” and “Item 1A - Risk Factors” in Part I of our 2025 Annual Report, our industry is highly regulated and is subject to risks and uncertainty caused by the volume and speed of changes to regulatory policies. Changes in regulatory posture and law may result in significant changes in healthcare policy, government funding of healthcare costs, and other laws affecting our operations, but the ultimate outcomes are difficult to predict.