Company Performance - McKesson reported quarterly earnings of $10.12 per share, exceeding the Zacks Consensus Estimate of $9.81 per share, and up from $6.18 per share a year ago, representing an earnings surprise of 3.16% [1] - The company posted revenues of $90.82 billion for the quarter ended March 2025, which missed the Zacks Consensus Estimate by 3.08%, compared to $76.36 billion in the same quarter last year [2] - Over the last four quarters, McKesson has surpassed consensus EPS estimates three times and topped consensus revenue estimates only once [2] Stock Performance - McKesson shares have increased approximately 26.8% since the beginning of the year, while the S&P 500 has declined by 4.3% [3] - The current Zacks Rank for McKesson is 3 (Hold), indicating that the shares are expected to perform in line with the market in the near future [6] Future Outlook - The consensus EPS estimate for the upcoming quarter is $8.33 on revenues of $93.61 billion, and for the current fiscal year, it is $36.58 on revenues of $399.57 billion [7] - The outlook for the Medical - Dental Supplies industry, where McKesson operates, is currently in the top 34% of over 250 Zacks industries, suggesting a favorable environment for stock performance [8]

Pharmaceutical Distribution - The U.S. Pharmaceutical segment distributes branded, generic, specialty, biosimilar, and OTC pharmaceutical drugs, operating through a network of 27 distribution centers in the U.S.[20] - McKesson Canada is one of the largest pharmaceutical wholesale and retail distributors in Canada, providing logistics and distribution services through a national network of distribution centers[36] - The International segment completed the sale of Rexall and Well.ca businesses in Canada during fiscal 2025[23] - The U.S. Pharmaceutical segment utilizes Six Sigma methodology to enhance distribution efficiency and service accuracy[25] - The company extended its pharmaceutical distribution partnership with CVS to June 2027, indicating a strong ongoing relationship[72] Financial Performance - For the fiscal year ended March 31, 2025, revenues increased by 16% compared to the prior year, while gross profit increased by 4%[177] - Revenues for the year ended March 31, 2025, increased to $359,051 million, a 16% rise from $308,951 million in 2024[185] - Gross profit rose to $13,323 million, up 4% from 12,828 million, with a gross profit margin of 3.71%, down 44 basis points from 4.15%[185] - Net income attributable to McKesson Corporation increased by 10% to $3,295 million compared to $3,002 million in the previous year[185] - Diluted earnings per common share from continuing operations rose to $25.72 in fiscal 2025 from $22.39 in the prior year[177] Cost Management and Investments - The company is investing in new and existing distribution centers to improve efficiency through automation and technology, with a focus on data and analytics, including artificial intelligence (AI) capabilities[39] - The company recorded restructuring charges of $298 million related to an enterprise-wide initiative to drive operational efficiencies[177] - McKesson anticipates total charges of $650 million to $700 million related to enterprise-wide initiatives aimed at modernizing technology and improving operational efficiency[202] Compliance and Regulatory Environment - The company is subject to significant compliance obligations under various privacy laws, including the Health Insurance Portability and Accountability Act (HIPAA) and the General Data Protection Regulation (GDPR)[67] - The regulatory framework affecting the company is continuously evolving, creating uncertainties regarding compliance costs and operational impacts[54] - The Drug Supply Chain Security Act (DSCSA) compliance deadlines have been extended to May 27, 2025, for manufacturers, August 27, 2025, for distributors, and November 27, 2025, for dispensers[65] - Compliance with climate change regulations may impose additional costs, including capital expenditures for data gathering and reporting systems[70] Competition and Market Challenges - The company is facing strong competition in the pharmaceutical distribution environment from major competitors such as Cencora, Inc. and Cardinal Health, Inc.[41] - Competition and industry consolidation are significant challenges, potentially leading to reduced profit margins and increased credit risk[115] - Changes in healthcare reform, including reimbursement methodologies, could negatively impact profit margins and create uncertainties for the business[110] Shareholder Returns - The quarterly dividend was raised from $0.62 to $0.71 per share, with regular cash dividends declared at $2.75, $2.40, and $2.09 per share for the years ended March 31, 2025, 2024, and 2023, respectively[147] - The company returned $3.5 billion to shareholders during fiscal 2025 through $3.1 billion in common stock repurchases and $345 million in dividend payments[177] - The total remaining authorization for repurchases of the company's common stock at March 31, 2025, was $7.5 billion[177] Cybersecurity and Technology Risks - The company has implemented a Cybersecurity Risk Management Program aligned with industry best practices to mitigate material cybersecurity risks[129] - Cybersecurity remains a key focus for the company, with annual enterprise-wide risk assessments identifying it as a principal risk[128] - Cybersecurity incidents pose risks to technology systems, potentially leading to data breaches and operational disruptions, affecting patient care and revenue[91] Employee and Operational Considerations - The company is committed to investing in employee health and wellness benefits, training, and competitive compensation to attract and retain talent[50] - As of March 31, 2025, the company had approximately 45,000 employees worldwide, including 36,000 in the U.S., 5,000 in Canada, and 4,000 in other regions[49] Acquisitions and Divestitures - The company completed the acquisition of a 70% controlling interest in Community Oncology Revitalization Enterprise Ventures, LLC for approximately $2.49 billion cash[172] - The company completed the acquisition of an 80% interest in PRISM Vision Holdings, LLC, a provider of general ophthalmology and retina management services[173] - The company has divested the majority of its European businesses during fiscal 2022 and 2023, with ongoing evaluations for remaining operations in Norway[38] Legal and Environmental Risks - The company faces potential liabilities from litigation related to the distribution of controlled substances, which could adversely affect financial position[83] - The company incurred cleanup costs under environmental laws, which may increase due to new regulations[85] - There are potential intellectual property infringement claims against the company, which could result in substantial damages and affect financial results[106]

Financial Data and Key Metrics Changes - The company reported a full year consolidated revenue growth of 16%, reaching a record level of $359 billion [6][42] - Adjusted earnings per diluted share was $33.05, exceeding expectations with a year-over-year growth of 20% [6][45] - Fourth quarter earnings per diluted share increased 64% to $10.12, driven by a lower effective tax rate and strong operational growth [35][36] Business Line Data and Key Metrics Changes - The U.S. Pharmaceutical segment revenues increased 21% to $83.2 billion, driven by increased prescription volumes and growth in specialty products [36] - The Prescription Technology Solutions segment saw revenues increase 13% to $1.3 billion, with operating profit rising 34% to $285 million [37] - The Medical Surgical Solutions segment revenues increased 1% to $2.9 billion, with operating profit up 15% to $285 million [39] Market Data and Key Metrics Changes - Revenues from GLP-1 medications in the fourth quarter were $10.9 billion, a 46% increase compared to the prior year [36] - The Canadian business, part of the international segment, experienced a 2% revenue decrease due to divestitures, but operating profit increased 9% [40][60] Company Strategy and Development Direction - The company is focusing on strategic acquisitions in oncology and biopharma services, including the acquisition of Prism Vision and Core Ventures [7][12] - A decision was announced to separate the Medical Surgical segment into an independent company to enhance strategic focus and capital deployment [20][29] - The company aims to leverage technology, automation, and AI to improve operational efficiencies and enhance financial profiles [9][63] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to continue momentum and deliver strong results in fiscal 2026, anticipating revenue growth of 11% to 15% [46][66] - The company is closely monitoring the macroeconomic environment and potential impacts from policy changes, but remains optimistic about the healthcare industry's resilience [26][100] - Management emphasized the importance of community-based care and its role in managing healthcare costs and accessibility [72] Other Important Information - The company returned $3.5 billion to shareholders, including $3.1 billion through share repurchases [45] - Free cash flow for the fiscal year was $5.2 billion, driven by strong operational results [45][41] Q&A Session Summary Question: Impact of Medicare Part B on ASPs - Management indicated that there are currently no confirmed changes and emphasized the importance of community-based care in managing costs [69][72] Question: Tariff Impacts on Business - Management is monitoring the tariff landscape but does not anticipate a material impact on fiscal 2026 guidance [78][85] Question: Urgency in Capital Deployment for Biopharma Services - Management stated that the urgency for capital deployment remains consistent, driven by strategic alignment and financial discipline [90][93] Question: Long-term Pharma Growth Rate Guidance - Management noted that the increase in guidance reflects a stable environment for prescription utilization and successful capital deployment [97][101] Question: SG&A Efficiency Improvements - Management acknowledged a substantial decline in SG&A expenses year-over-year, attributing it to operational efficiencies [105]

Financial Data and Key Metrics Changes - The company reported a full year consolidated revenue growth of 16%, reaching a record level of $359 billion, with adjusted earnings per diluted share at $33.5, exceeding expectations and reflecting a year-over-year EPS growth of 20% [5][40][42] - Fourth quarter earnings per diluted share increased 64% to $10.12, driven by a lower effective tax rate and strong operational growth across the business [32][29] - Operating profit for the full year increased 15% to $5.6 billion, with significant contributions from the U.S. Pharmaceutical and Prescription Technology Solutions segments [41][42] Business Line Data and Key Metrics Changes - The U.S. Pharmaceutical segment saw revenues increase by 21% to $83.2 billion, driven by increased prescription volumes and growth in specialty product distribution [33][22] - The Prescription Technology Solutions segment reported a revenue increase of 13% to $1.3 billion, with operating profit rising 34% to $285 million, reflecting increased prescription transaction volumes [34][35] - The Medical Surgical Solutions segment experienced a 1% revenue increase to $2.9 billion, with operating profit up 15% to $285 million, benefiting from cost optimization initiatives [37][36] Market Data and Key Metrics Changes - The Canadian business, part of the international segment, reported revenues of $3.5 billion, a decrease of 2% due to the divestiture of certain businesses, but operating profit increased by 9% [38][24] - The company anticipates continued growth in the Canadian distribution business, partially offset by the impact of previous divestitures [58] Company Strategy and Development Direction - The company is focusing on strategic acquisitions in oncology and biopharma services, including the acquisition of a controlling interest in Prism Vision and Core Ventures, aimed at enhancing community-based care [6][12][49] - A strategic decision was made to separate the Medical Surgical segment into an independent company to enhance operational focus and capital deployment [19][27] - The company plans to continue investing in technology, automation, and AI to improve operational efficiencies and customer service [7][10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to maintain momentum and deliver strong results in fiscal 2026, with anticipated revenue growth of 11% to 15% and operating profit growth of 8% to 12% [43][44] - The company remains committed to maximizing shareholder value through disciplined portfolio management and strategic capital deployment [27][62] Other Important Information - The company returned $3.5 billion to shareholders in fiscal 2025, including $3.1 billion through share repurchases [42] - Free cash flow for the fourth quarter was robust at $7.5 billion, driven by strong operating results [39] Q&A Session Summary Question: Impact of Medicare Part B on ASPs - Management indicated that there are currently no concrete announcements regarding Medicare Part B impacts, and any potential changes would likely face legal challenges [65][66] Question: Tariff Impacts on Business - Management is closely monitoring the tariff landscape and believes that current assessments have been incorporated into guidance, with no material impact anticipated on fiscal 2026 results [75][81] Question: Urgency in Capital Deployment for Biopharma Services - Management stated that the urgency for capital deployment remains consistent, driven by strategic alignment and financial discipline [85][88] Question: Long-term Pharma Growth Rate Guidance - Management noted that the increase in long-term guidance reflects a stable environment for prescription utilization and successful capital deployment in oncology and other specialties [92][96]

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]