MCKESSON CORP
For the period ended Mar 31, 2026. Filed May 8, 2026.
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FY2026 · Filed May 8, 2026
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Financial Note 7, “Redeemable Noncontrolling Interests and Noncontrolling Interests,”
- Redeemable Noncontrolling Interests and Noncontrolling Interests
Redeemable Noncontrolling Interests
Noncontrolling interests with redemption features, such as put rights, that are not solely within the Company’s control are considered redeemable noncontrolling interests.
During the year ended March 31, 2026, the Company initially recognized redeemable noncontrolling interests of $25 million related to its acquisition of PRISM Vision and $700 million related to its acquisition of Core Ventures. The Company utilized a Monte Carlo simulation model for its periodic valuation of the redeemable noncontrolling interests for both acquisitions. As a result, the Company recorded a fair value adjustment of $87 million, which was recorded as a decrease in the Company’s additional paid-in capital, for the year ended March 31, 2026.
The Company also recognized a redemption value adjustment to the Core Ventures redeemable noncontrolling interest of $122 million, which was recorded to “Net income attributable to noncontrolling interests” in the Company’s Consolidated Statement of Operations for the year ended March 31, 2026.
Redeemable noncontrolling interests are presented outside of stockholders’ deficit in the Company’s Consolidated Balance Sheet. Refer to Financial Note 2, “Business Acquisitions and Divestitures,” for additional information on the acquisition activity discussed above.
Noncontrolling Interests
Noncontrolling interests represent third-party equity interests in the Company’s consolidated entities primarily related to ClarusONE, Vantage, and SCRI Oncology. Noncontrolling interests in the Company’s Consolidated Balance Sheets were $395 million and $380 million at March 31, 2026 and 2025, respectively. For the years ended March 31, 2026, 2025, and 2024, the Company allocated a total of $197 million, $186 million, and $158 million of net income to noncontrolling interests, respectively.
| Table of Contents | Item 8 Index |
|---|
Changes in noncontrolling interests for the years ended March 31, 2026, 2025, and 2024 were as follows:
| Fiscal 2026 · Fiscal 2025 · Fiscal 2024 | ||||
|---|---|---|---|---|
| (In millions) | NoncontrollingInterests | RedeemableNoncontrollingInterests | NoncontrollingInterests | NoncontrollingInterests |
| Beginning balance | $380 | $— | $372 | $367 |
| Net income attributable to noncontrolling interests | 197 | 18 | 186 | 158 |
| Adjustment to redemption value in net income attributable to noncontrolling interests | — | 122 | — | — |
| Payments to noncontrolling interests | (182) | (7) | (178) | (152) |
| Acquisition of PRISM Vision at fair value | — | 25 | — | — |
| Acquisition of Core Ventures at fair value | — | 700 | — | — |
| Adjustment to fair value | — | 87 | — | — |
| Other | — | (2) | — | (1) |
| Ending balance | $395 | $943 | $380 | $372 |
- Earnings Per Common Share
Basic earnings per common share is computed by dividing net income by the weighted-average number of common shares outstanding during the reporting period. The computation of diluted earnings per common share is similar to that of basic earnings per common share, except that the former reflects the potential dilution that could occur if dilutive securities or other obligations to issue common stock were exercised or converted into common stock. Potentially dilutive securities include outstanding stock options, restricted stock units, and performance-based and other restricted stock units.
The computations for basic and diluted earnings or loss per common share were as follows:
| Years Ended March 31, | |||
|---|---|---|---|
| (In millions, except per share amounts) | 2026 | 2025 | 2024 |
| Numerator | |||
| Income from continuing operations | $5,099 | $3,481 | $3,160 |
| Net income attributable to noncontrolling interests | (215) | (186) | (158) |
| Adjustment to redemption value in net income attributable to noncontrolling interests | (122) | — | — |
| Net income attributable to McKesson Corporation | $4,762 | $3,295 | $3,002 |
| Denominator | |||
| Weighted-average common shares outstanding: | |||
| Basic | 123.6 | 127.4 | 133.2 |
| Effect of dilutive securities: | |||
| Stock options | — | — | 0.2 |
| Restricted stock units (1) | 0.5 | 0.7 | 0.7 |
| Diluted | 124.1 | 128.1 | 134.1 |
| Earnings per common share attributable to McKesson Corporation: (2) | |||
| Diluted | $38.38 | $25.72 | $22.39 |
| Basic | $38.55 | $25.86 | $22.54 |
| Table of Contents | Item 8 Index |
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(1)Includes dilutive effect from restricted stock units and performance-based restricted stock units.
(2)Certain computations may reflect rounding adjustments.
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