Financial Performance - Revenues for the three months ended December 31, 2025, were $106,158 million, a 11.5% increase from $95,294 million in the same period of 2024[9] - Net income for the three months ended December 31, 2025, was $1,250 million, up 34.6% from $928 million in the same period of 2024[11] - Operating income for the nine months ended December 31, 2025, reached $4,062 million, a significant increase from $2,831 million in the same period of 2024[9] - Earnings per share (diluted) for the three months ended December 31, 2025, were $9.59, compared to $6.95 for the same period in 2024, reflecting a 37.5% increase[9] - Comprehensive income for the three months ended December 31, 2025, was $1,255 million, compared to $829 million in the same period of 2024[11] - Net income for the nine months ended December 31, 2025, was $3,244 million, an increase from $2,175 million in the same period of 2024, representing a growth of 49.2%[21] Assets and Liabilities - Total assets as of December 31, 2025, amounted to $84,190 million, an increase from $75,140 million as of March 31, 2025[15] - Cash and cash equivalents decreased to $2,959 million as of December 31, 2025, from $5,691 million as of March 31, 2025[15] - Total current liabilities increased to $68,131 million as of December 31, 2025, compared to $61,604 million as of March 31, 2025[15] - Goodwill increased to $11,324 million as of December 31, 2025, from $10,022 million as of March 31, 2025[15] - The company's long-term debt increased to $6,557 million as of December 31, 2025, up from $5,654 million as of March 31, 2025, representing a growth of 15.9%[96] Cash Flow and Dividends - Cash provided by operating activities for the nine months ended December 31, 2025, was $2,734 million, compared to cash used in operating activities of $(1,663) million in 2024[21] - The company declared cash dividends of $0.82 per common share during the three months ended December 31, 2025[17] - Cash dividends declared were $280 million, with a dividend per common share of $2.35[21] Acquisitions and Investments - The company made acquisitions totaling $3,412 million during the nine months ended December 31, 2025[21] - The Company acquired an 80% controlling interest in PRISM Vision Holdings for $875 million in cash, with an additional $25 million classified as redeemable noncontrolling interest[38] - The Company acquired a 70% controlling interest in Community Oncology Revitalization Enterprise Ventures for $2.5 billion in cash, with a total estimated fair value of consideration at $3.181 billion[43][47] Restructuring and Impairment - Restructuring, impairment, and related charges for the nine months ended December 31, 2025, totaled $146 million, compared to $276 million for the same period in 2024[54][59] - The Company anticipates total charges related to enterprise-wide initiatives to be between $650 million and $700 million, primarily for employee severance and related costs[55] - The company reported asset impairment charges of $10 million for the nine months ended December 31, 2025[21] Taxation - Income tax expense for the three months ended December 31, 2025, was $380 million, with a reported income tax rate of 23.3%, compared to $298 million and 24.3% for the same period in 2024[67] - During the nine months ended December 31, 2025, the company recognized a discrete tax benefit of $119 million related to the release of a valuation allowance in a foreign jurisdiction[69] Segment Performance - North American Pharmaceutical segment revenues increased to $88,322 million in Q3 2025 from $81,198 million in Q3 2024, representing a growth of 2.8%[198] - Oncology & Multispecialty segment revenues rose to $13,010 million in Q3 2025 compared to $9,493 million in Q3 2024, marking a significant increase of 37.7%[198] - The Medical-Surgical Solutions segment announced plans to separate into an independent company by May 8, 2025[193] Legal and Regulatory Matters - The Company has paid approximately $2.5 billion to settling governmental entities as of December 31, 2025, with an additional commitment of up to $5.4 billion through 2038[144] - The estimated total litigation liabilities for opioid-related claims as of December 31, 2025, amount to $5.708 billion, down from $6.377 billion as of March 31, 2025[154] - The Company is involved in ongoing litigation related to opioid distribution claims, with significant uncertainties regarding potential liabilities[143] Stock Repurchase and Dividends - The quarterly dividend was raised from $0.71 to $0.82 per share on July 29, 2025, with future dividends dependent on the Company's earnings and financial condition[165] - The Board authorized the repurchase of common stock, with the timing and number of shares repurchased depending on various factors including stock price and market conditions[166] - The total number of shares repurchased in Q1 2025 was 0.8 million at an average price of $709.84 per share, with a total dollar value of shares that may yet be purchased at $7,469 million[170]

Financial Data and Key Metrics Changes - Revenue increased by 11% to $106.2 billion, driven by broad-based growth across the business and higher prescription volumes [19][25] - Adjusted earnings per diluted share rose by 16% to $9.34, reflecting strong operational performance [21][25] - Operating profit increased by 13% year-over-year to $1.7 billion, supported by demand for access solutions and specialty distribution [20][25] Business Line Data and Key Metrics Changes - North American pharmaceutical revenues grew by 9% to $88.3 billion, with GLP-1 distribution revenues reaching $14 billion, up 26% year-over-year [21][22] - Oncology and multispecialty segment revenues surged by 37% to $13 billion, with operating profit increasing by 57% to $366 million [22][23] - Prescription technology solutions segment revenues rose by 9% to $1.5 billion, with operating profit up 18% to $277 million [23] Market Data and Key Metrics Changes - The U.S. Oncology Network now includes approximately 3,400 providers, with significant contributions from the integration of Florida Cancer Specialists and PRISM Vision [6][8] - The company reported strong demand for biopharma services, adding over 50 new programs across 43 unique brands during the quarter [9][60] Company Strategy and Development Direction - The company is focused on oncology and multispecialty services, leveraging its scale and leadership to meet evolving market needs [6][8] - Investments are being made in technology and automation to enhance operational efficiency and improve patient access to medications [10][36] - The company is progressing with the separation of its medical-surgical business, aiming for an IPO by the second half of calendar 2027 [15][16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to sustain momentum and execute strategic priorities, raising full-year EPS guidance to $38.80-$39.20, reflecting 17%-19% growth [4][25] - The company anticipates revenue growth of 12%-16% and operating profit growth of 13%-17% for the full year, supported by strong third-quarter performance [25][26] Other Important Information - The company completed the divestiture of its Norwegian operations, marking the final step in its exit from Europe [18] - Free cash flow for the quarter was reported at $1.1 billion, with plans to repurchase approximately $2.5 billion of shares [24][32] Q&A Session Questions and Answers Question: Can you talk about the specific investments you're making in technology and automation? - Management highlighted investments in AI and automation to improve workflows, allowing employees to support more patients efficiently during the annual verification season [35][36] Question: How should we think about the longer-term opportunity to improve margins in that segment? - Management noted that operating margins have grown over 130 basis points year-over-year, with a focus on automating capabilities and services for biopharma partners [38] Question: What are the key drivers of growth in the North American pharmaceutical segment? - Management pointed to strong specialty distribution growth and operational efficiency gains as key drivers of growth in the segment [40][52]

Core Insights - The article discusses the importance of enabling Javascript and cookies in browsers to prevent access issues [1] Group 1 - The article emphasizes that users may be blocked from proceeding if an ad-blocker is enabled [1]

McKesson Corporation Third Quarter Fiscal 2026 Earnings Call February 4, 2026 1 © 2026 McKesson Corporation. All rights reserved. Cautionary Statements Cautionary Statements In an effort to provide additional and useful information regarding the Company's financial results and other financial information as determined by generally accepted accounting principles (GAAP), certain materials in this presentation include non-GAAP information. The Company believes the presentation of non-GAAP measures provides use ...

Exhibit 99.1 McKESSON CORPORATION REPORTS FISCAL 2026 THIRD QUARTER RESULTS AND RAISES FULL YEAR ADJUSTED EPS GUIDANCE IRVING, Texas, February 4, 2026 - McKesson Corporation (NYSE:MCK) today announced results for the third quarter ended December 31, 2025. Third Quarter Highlights: Fiscal 2026 Full Year Outlook: "McKesson delivered another strong quarter, extending the momentum we've built across the enterprise and demonstrating the impact of our disciplined execution," said Brian Tyler, chief executive offi ...

Core Insights - McKesson Corporation (MCK) is set to report its third-quarter fiscal 2026 results on February 4, with sales expected to reach $105.54 billion, indicating a year-over-year growth of 10.8% [1][7] - The projected earnings per share (EPS) is $9.31, reflecting a growth of 15.9% [1][7] - The company has shown an earnings surprise of 10.54% in the last quarter, beating estimates in three of the last four quarters with an average surprise of 3.49% [2] Earnings Prediction Model - The Zacks model does not predict a definitive earnings beat for McKesson this quarter, as the Earnings ESP is 0.00% and the company holds a Zacks Rank of 3 (Hold) [3][4] Factors Influencing Q3 Performance - McKesson's third-quarter performance is expected to be strong, driven by growth in specialty distribution, oncology services, and prescription technology solutions [5][7] - Revenue growth is anticipated from increased prescription volumes and the expansion of GLP-1 medications, although margin performance will be closely monitored [5][8] - Operating profit is likely to exceed revenue growth due to a favorable business mix and efficiency initiatives [8] Segment Performance - The North American Pharmaceutical segment is expected to show steady growth, supported by increased prescription volumes and specialty product momentum, particularly from GLP-1 medications [9] - The Oncology and Multispecialty segment is projected to be a standout performer, benefiting from organic growth and contributions from recent acquisitions [10][11] - Revenue growth in Prescription Technology Solutions is expected to be driven by higher prescription volumes and demand for affordability solutions, although increased investment spending may impact near-term profit growth [12] - The Medical-Surgical Solutions segment may reflect a modest drag on overall growth due to lower demand for vaccines and testing products [13] Stock Performance - McKesson's shares have increased by 19.1% over the past six months, outperforming the industry growth of 15.7% and the S&P 500 Index growth of 12.4% [14] Conclusion - Strong momentum in higher-growth platforms and efficiency gains provide earnings stability, but near-term variability from investment spending and mix shifts limits visibility for further upside [15]

Core Viewpoint - McKesson Corporation is positioned as a leading healthcare services and information technology company, with strong anticipated earnings growth and revenue increase for the upcoming quarter [1][2]. Financial Performance - Analysts expect McKesson to report earnings per share (EPS) of $9.31, reflecting a 15.9% increase from the previous year [2][6]. - Revenue is projected to reach $105.54 billion, marking a 10.8% rise from the same quarter last year [2][6]. - The consensus EPS estimate has remained unchanged over the past 30 days, indicating strong analyst confidence in the company's performance [3][6]. Valuation Metrics - The price-to-earnings (P/E) ratio is 26.03, suggesting that investors are willing to pay a premium for the company's earnings [4][6]. - The price-to-sales ratio is 0.27 and the enterprise value to sales ratio is 0.29, indicating a reasonable valuation relative to sales [4]. - The enterprise value to operating cash flow ratio is 16.16, showcasing the company's cash flow generation capabilities [4]. Capital Structure and Liquidity - The earnings yield stands at 3.84%, providing insight into the return on investment [5][6]. - A negative debt-to-equity ratio of -5.63 indicates a unique capital structure that may require further analysis [5][6]. - The current ratio is 0.88, suggesting potential liquidity considerations as it is below the ideal level of 1.0 [5].

Group 1 - McKesson Corporation is highlighted as a stock that typically performs well during earnings reports, with a history of stock price increases following such announcements [1] - The company distributes pharmaceutical drugs and medical-surgical supplies, and also offers healthcare technology and business services [2] - Despite a significant top-line miss in the last quarter, McKesson reported a strong earnings beat and provided a higher-than-expected full-year earnings forecast [2] - The stock has gained 22% since the mention in the episode aired on May 14, 2025 [3] Group 2 - The healthcare sector is currently facing scrutiny from the president, particularly targeting drug middlemen and distributors [1] - McKesson, along with other drug distributors, is noted for being strong performers over the long term, despite the perception of being vulnerable to market fluctuations [2]

Industry Overview - The Zacks Medical - Dental Supplies industry is expected to maintain upward momentum in 2026 due to innovation, an aging population, and normalized orders post-COVID-19 [1] - The global medical supplies industry is projected to reach $163.5 billion by 2027, growing at a CAGR of 3.4% from 2022 to 2027 [4] Technological Advancements - Continued adoption of digital services and AI-enabled tools is anticipated to enhance patient experience and reduce administrative burdens for physicians [2] - Innovations such as CAD/CAM systems, 3D imaging, and AI diagnostics are expected to improve treatment efficacy and broaden product use [8] Market Trends - The industry is shifting towards higher-margin specialty areas like oncology and urology, with precision health and theranostics emerging as significant trends [3] - There is a growing emphasis on preventive care and minimally invasive procedures, which is expanding market segments for dental consumables [9] Regional Growth Drivers - Emerging markets, particularly in Asia-Pacific, are benefiting from increased healthcare expenditure and improved access to care, contributing to faster growth rates [10] Economic Factors - Strong healthcare infrastructure and higher disposable income in developed regions support the adoption of advanced dental products [11] Challenges - U.S. tariffs have raised costs on essential imported dental supplies, leading to increased prices and supply-chain disruptions [12] - The industry is responding by shifting supply chains towards domestic production to mitigate tariff exposure [13] Company Performance - The industry has outperformed its sector with a collective gain of 6.6% over the past year, compared to the Zacks Medical sector's rise of 1.9% [16] - The industry is currently trading at a forward P/E of 17.67X, lower than the S&P 500's 22.81X [19] Company Insights - West Pharmaceutical is expected to maintain growth momentum in 2026, driven by demand for high-value products and operational improvements [21][22] - McKesson anticipates revenue growth of 11-15% in fiscal 2026, supported by strong demand in specialty distribution [30] - Cardinal Health expects revenues from its Pharmaceutical segment to grow 15-17% year-over-year, with challenges from competitive pricing pressures [35] - Align Technology is positioned for growth in 2026 due to restructuring actions and technological innovations, with a projected revenue increase of 3.7% [42]

Company Performance - McKesson (MCK) closed at $821.84, reflecting a -2.22% change from the previous day, underperforming the S&P 500's daily loss of 2.06% [1] - Over the past month, McKesson's shares have increased by 2.7%, while the Medical sector has decreased by 0.88% and the S&P 500 has gained 1.63% [1] Upcoming Earnings - McKesson's earnings report is scheduled for February 4, 2026, with expected earnings of $9.19 per share, indicating a year-over-year growth of 14.45% [2] - The consensus estimate for revenue is $105.66 billion, representing a 10.88% increase compared to the same quarter last year [2] Fiscal Year Estimates - For the entire fiscal year, the Zacks Consensus Estimates predict earnings of $38.61 per share and revenue of $408.23 billion, reflecting changes of +16.82% and +13.7% respectively from the previous year [3] Analyst Estimates - Recent modifications to analyst estimates for McKesson indicate the dynamic nature of near-term business trends, with upward revisions suggesting analysts' positive outlook on the company's operations [4] Zacks Rank - McKesson currently holds a Zacks Rank of 2 (Buy), with the Zacks Rank system showing a strong track record of success, particularly for 1 stocks which have delivered an average annual return of +25% since 1988 [6] Valuation Metrics - McKesson has a Forward P/E ratio of 21.77, which is a premium compared to the industry average Forward P/E of 18.28 [7] - The company's PEG ratio is 1.38, while the Medical - Dental Supplies industry average PEG ratio is 1.97 [7] Industry Overview - The Medical - Dental Supplies industry, part of the Medical sector, has a Zacks Industry Rank of 54, placing it in the top 23% of over 250 industries [8] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [8]