McKesson Corporation Fiscal 2025 Financial Results Fiscal 2026 Outlook May 8, 2025 Cautionary Statements Cautionary Statements This presentation 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," "estimat ...

Exhibit 99.1 McKESSON REPORTS FISCAL 2025 FOURTH QUARTER AND FULL YEAR RESULTS AND PROVIDES FISCAL 2026 GUIDANCE; ANNOUNCES INTENT TO SEPARATE MEDICAL-SURGICAL SOLUTIONS IRVING, Texas, May 8, 2025 - McKesson Corporation (NYSE:MCK) today announced results for the fourth quarter and fiscal year ended March 31, 2025. Fourth Quarter Highlights: Full Year Highlights: "McKesson delivered strong fourth quarter performance reporting revenue growth of 19% and Adjusted Earnings per Diluted Share growth of 64%. This m ...

Investors often turn to recommendations made by Wall Street analysts before making a Buy, Sell, or Hold decision about a stock. While media reports about rating changes by these brokerage-firm employed (or sell-side) analysts often affect a stock's price, do they really matter?Let's take a look at what these Wall Street heavyweights have to say about McKesson (MCK) before we discuss the reliability of brokerage recommendations and how to use them to your advantage.McKesson currently has an average brokerage ...

Core Viewpoint - McKesson Corporation is expected to report significant revenue and earnings growth in the fourth quarter of fiscal 2025, driven by the adoption of GLP-1 weight loss drugs, demand for specialty pharmaceuticals, and investments in technology and distribution [1][3][16]. Revenue Growth Drivers - The rapid adoption of GLP-1 weight loss drugs and sustained demand for branded pharmaceuticals have significantly fueled McKesson's revenue growth [1][6]. - A rebound in primary care visits has also supported top-line growth in the last two reported quarters [2]. - Investments in expanding distribution centers and integrating artificial intelligence into services have bolstered revenues [2][20]. Earnings Estimates - The Zacks Consensus Estimate for earnings is $9.81 per share, reflecting a 58.7% year-over-year improvement [3]. - The consensus revenue estimate is $93.7 billion, indicating a 22.7% year-over-year surge [3]. Segment Performance Insights - The U.S. Pharmaceutical segment is expected to show steady growth, driven by strong demand for specialty pharmaceuticals, particularly oncology treatments [4]. - The Prescription Technology Solutions segment is projected to see revenues of $1.33 billion, a 12.3% year-over-year improvement, supported by strong demand for technology services [9]. - The Medical Surgical Solutions segment is estimated to generate $2.8 billion, reflecting a 1.5% decline year-over-year due to less demand for illness season products [11]. Strategic Initiatives - McKesson has expanded its distribution network by opening new technologically advanced centers and acquiring stakes in oncology-related ventures, which are expected to enhance its service delivery and revenue growth [17][18]. - The company is leveraging advanced technologies, particularly AI, to improve service delivery and streamline operations [20]. Market Position and Performance - McKesson's shares have gained 24.1% this year, outperforming the industry, which has declined by 2.1% [21]. - The company is recognized for its extensive distribution network, which includes over 50,000 pharmacies and nearly 900,000 healthcare providers, enhancing its appeal to pharmaceutical manufacturers [19].

The latest trading session saw McKesson (MCK) ending at $694.70, denoting a +0.27% adjustment from its last day's close. The stock's performance was ahead of the S&P 500's daily loss of 2.24%. Elsewhere, the Dow lost 1.73%, while the tech-heavy Nasdaq lost 3.07%.The prescription drug distributor's stock has climbed by 4.72% in the past month, exceeding the Medical sector's loss of 7.47% and the S&P 500's loss of 4.17%.Market participants will be closely following the financial results of McKesson in its upc ...

Group 1 - McKesson's stock closed at $679.33, showing a +1.13% change, outperforming the S&P 500's loss of 3.46% [1] - Over the last month, McKesson's shares increased by 4.85%, while the Medical sector and S&P 500 experienced losses of 10.85% and 5.27% respectively [1] Group 2 - McKesson is expected to report earnings of $9.81 per share on May 8, 2025, reflecting a year-over-year growth of 58.74% [2] - The consensus revenue estimate for McKesson is $93.7 billion, indicating a 22.72% growth compared to the same quarter last year [2] Group 3 - Recent revisions to analyst forecasts for McKesson can indicate shifts in short-term business patterns, with positive revisions suggesting a favorable business outlook [3] - The Zacks Rank system, which incorporates estimate changes, provides actionable ratings for stocks [4] Group 4 - McKesson currently holds a Zacks Rank of 3 (Hold), with the consensus EPS estimate moving 0.26% lower over the last 30 days [5] - The Forward P/E ratio for McKesson is 17.85, which is higher than the industry average of 15.09 [6] - McKesson has a PEG ratio of 1.26, compared to the Medical - Dental Supplies industry's average PEG ratio of 1.55 [6] Group 5 - The Medical - Dental Supplies industry, which includes McKesson, has a Zacks Industry Rank of 75, placing it in the top 31% of over 250 industries [7] - Industries in the top 50% of the Zacks Rank tend to outperform those in the bottom half by a factor of 2 to 1 [7]

Core Viewpoint - McKesson Corporation has completed the acquisition of PRISM Vision Holdings for approximately $850 million, enhancing its presence in the ophthalmology and retinal management sector, which aligns with its strategy to expand specialty healthcare services beyond oncology [1] Expansion of Clinical and Distribution Capabilities - The acquisition enhances McKesson's clinical services and distribution offerings by integrating PRISM's established network, allowing for advanced retinal and ophthalmology management solutions [4] - This integration aims to create a differentiated platform for ophthalmology, reinforcing McKesson's leadership in community-based healthcare solutions [4] Strengthening Data, Analytics, and Research - The deal supports McKesson's long-term goal of expanding its data and analytics capabilities, enabling the optimization of patient outcomes and improvement in clinical research methodologies [5] - Increased investment in innovative clinical research is also facilitated, solidifying McKesson's role in advancing specialty care [6] Deepening Biopharma Partnerships - The acquisition allows McKesson to deepen its relationships with biopharma partners in the ophthalmology space, leveraging PRISM's established reputation to enhance research, distribution, and specialty care capabilities [7] Financial Impact and Growth Projections - The acquisition is expected to be accretive to McKesson's earnings, with PRISM projected to contribute 20-30 cents to adjusted earnings per share in the first 12 months, growing to 65-75 cents per share by the end of the third year [8]

Core Viewpoint - The article discusses the reliability of brokerage recommendations, particularly focusing on McKesson (MCK), and highlights the potential misalignment of interests between brokerage firms and retail investors [1][4][9]. Group 1: Brokerage Recommendations for McKesson - McKesson has an average brokerage recommendation (ABR) of 1.38, indicating a consensus between Strong Buy and Buy, based on 16 brokerage firms [2]. - Out of the 16 recommendations, 13 are Strong Buy, accounting for 81.3% of all recommendations [2]. Group 2: Limitations of Brokerage Recommendations - Relying solely on brokerage recommendations may not be advisable, as studies suggest they often fail to guide investors toward stocks with the highest potential for price appreciation [4]. - Analysts from brokerage firms tend to exhibit a strong positive bias in their ratings, issuing five "Strong Buy" recommendations for every "Strong Sell" [5][9]. - The interests of brokerage firms may not align with those of retail investors, leading to a lack of insight into future stock price movements [6]. Group 3: Zacks Rank as an Alternative - The Zacks Rank is presented as a more reliable indicator of a stock's near-term price performance, classifying stocks into five groups from Strong Buy to Strong Sell [7]. - Unlike the ABR, the Zacks Rank is based on earnings estimate revisions, which have shown a strong correlation with near-term stock price movements [10]. - The Zacks Rank is updated more frequently than the ABR, making it a timely tool for predicting future stock prices [11]. Group 4: Current Earnings Estimates for McKesson - The Zacks Consensus Estimate for McKesson's earnings for the current year remains unchanged at $32.76, indicating steady analyst views on the company's earnings prospects [12]. - The unchanged consensus estimate has resulted in a Zacks Rank of 3 (Hold) for McKesson, suggesting caution despite the Buy-equivalent ABR [13].

Core Viewpoint - McKesson (NYSE: MCK) has shown strong performance in the oncology sector, leading to a significant outperformance of its stock price compared to the market since November 2024 [1]. Group 1 - The company has a robust oncology network that contributes to its superior growth, even in a challenging macroeconomic environment [1]. - The stock has been rated as a 'Strong Buy' due to its performance and growth potential [1].

Economic Sentiment - Investors and consumers are feeling anxious about a potential recession due to an inverted yield curve and a downward revision of GDP growth to -2.8% for Q1 2025 from +4.0% [1][2] Republic Services - Republic Services Inc. (NYSE: RSG) provides essential waste management services, insulating it from declines in consumer spending [4] - The company has shown strong financial performance with a 5.6% year-over-year revenue growth and a 16.4% improvement in net income in the latest quarter [6] - Republic Services has a moderate buy rating with a projected earnings growth of 9.48% and a healthy adjusted free cash flow of nearly $2.2 billion in 2024 [5][6] - The stock has increased nearly 26% in the year ending March 4, and 10 out of 16 analysts have rated it a buy [7] McKesson Corporation - McKesson Corp. (NYSE: MCK) is a major player in the healthcare sector, distributing pharmaceuticals and health supplies, and has seen an 18% year-over-year revenue improvement [9][10] - The company achieved an all-time high stock price in early March after growing more than 20% in the last year, with a projected earnings growth of 11.81% [9][10][12] - McKesson's strategic acquisitions and solid financial footing position it well against potential recession impacts, with 13 out of 15 analysts rating it a buy [11][12] PG&E Corporation - PG&E Corp. (NYSE: PCG) is a key player in the utilities sector, exceeding its goal of 9,000 new-service customer connections for 2024 by over 50% [13][14] - The company reported operating cash flow of $8 billion in 2024, nearly double that of the previous year, and has a projected earnings growth of 9.40% [15] - PG&E's financial position is strong, with its equity needs fully satisfied for a $63 billion capital plan through 2028, despite risks associated with climate change [15]