27877c9e06c20be293e9f4cf804bd2530a1b58afafb0029d0423b0212a0ab4d1

| Segment/Quarter | Q3 2023 | Q4 2023 | Q1 2024 | Q2 2024 | Q3 2024 | Q4 2024 | Q1 2025 | Q2 2025 |
|-----------------|---------|---------|---------|---------|---------|---------|---------|---------|
| U.S. Pharmaceutical (USD Billion) | **$61.9**  **[0000927653-23-000015_mck_exhibit991x12312022.htm:2]** **[0000927653-23-000017_mck-20221231.htm:63]**  | **$61.7**  **[0000927653-23-000036_mck_exhibit991x3312023.htm:2]**  | **$67.2**  **[MCK_3306371_4]** **[0000927653-23-000060_mck_exhibit991x6302023.htm:2]**  | **$69.8**  **[0000927653-23-000083_mck-20230930.htm:49]**  | **$73.0**  **[MCK_3372311_6]** **[0000927653-24-000021_mck-20231231.htm:54]**  | **$68.8**  **[0000927653-24-000033_mck_exhibit991x3312024.htm:2]**  | **$71.7**  **[0000927653-24-000096_mck_exhibit991x6302024.htm:2]**  | **$85.7**  **[MCK_3406144_6]** **[0000927653-24-000121_mck_exhibit991x9302024.htm:2]**  |
| International (USD Billion) | **$4.4**  **[0000927653-23-000015_mck_exhibit991x12312022.htm:2]** **[0000927653-23-000017_mck-20221231.htm:63]**  | **$3.4**  **[0000927653-23-000036_mck_exhibit991x3312023.htm:3]**  | **$3.5**  **[0000927653-23-000060_mck_exhibit991x6302023.htm:2]** **[MCK_3383790_7]**  | **$3.5**  **[0000927653-23-000083_mck-20230930.htm:49]** **[0000927653-23-000081_mck_exhibit991x9302023.htm:3]**  | **$3.6**  **[MCK_3372311_6]** **[0000927653-24-000021_mck-20231231.htm:54]** **[0000927653-24-000018_mck_exhibit991x12312023.htm:2]**  | **$3.5**  **[0000927653-24-000033_mck_exhibit991x3312024.htm:3]**  | **$3.7**  **[0000927653-24-000096_mck_exhibit991x6302024.htm:2]**  | **$3.7**  **[0000927653-24-000121_mck_exhibit991x9302024.htm:2]**  |

8a676d7aafb04749d2953721764f9b422808134ce9331411408fffca83d285a2

4474db0d7e90c3b1b787a5310c09f888e065a2cca0781f6de23e0bd513264b0f

| Segment / Quarter | Q3 2023 | Q4 2023 | Q1 2024 | Q2 2024 | Q3 2024 | Q4 2024 | Q1 2025 | Q2 2025 |
|-------------------|---------|---------|---------|---------|---------|---------|---------|---------|
| **U.S. Pharmaceutical (Billion $)** | **61.9**  **[0000927653-23-000015_mck_exhibit991x12312022.htm:2]**  | **61.7**  **[0000927653-23-000036_mck_exhibit991x3312023.htm:2]**  | **67.2**  **[MCK_3306371_4]**  | **69.8**  **[MCK_3363335_7]**  | **73.0**  **[MCK_3372311_6]**  | **68.8**  **[0000927653-24-000033_mck_exhibit991x3312024.htm:2]**  | **71.7**  **[MCK_3397060_5]**  | **85.7**  **[MCK_3406144_6]** **[0000927653-24-000121_mck_exhibit991x9302024.htm:1]** **[0000927653-24-000121_mck_exhibit991x9302024.htm:2]**  |
| **Prescription Technology Solutions (Billion $)** | **1.1**  **[0000927653-23-000015_mck_exhibit991x12312022.htm:2]** **[0000927653-23-000015_mck_exhibit991x12312022.htm:1]** **[0000927653-23-000017_mck-20221231.htm:63]**  | **1.2**  **[0000927653-23-000036_mck_exhibit991x3312023.htm:2]**  | **1.2**  **[MCK_3306371_4]**  | **1.1**  **[MCK_3363335_7]**  | **1.2**  **[MCK_3372311_6]**  | **1.2**  **[0000927653-24-000033_mck_exhibit991x3312024.htm:2]**  | **1.2**  **[MCK_3397060_5]**  | **1.3**  **[MCK_3406144_6]** **[0000927653-24-000121_mck_exhibit991x9302024.htm:1]** **[0000927653-24-000121_mck_exhibit991x9302024.htm:2]**  |
| **Medical-Surgical Solutions (Billion $)** | **3.0**  **[0000927653-23-000015_mck_exhibit991x12312022.htm:2]** **[0000927653-23-000015_mck_exhibit991x12312022.htm:1]** **[0000927653-23-000017_mck-20221231.htm:63]**  | **2.7**  **[0000927653-23-000036_mck_exhibit991x3312023.htm:2]**  | **2.6**  **[MCK_3306371_4]**  | **2.8**  **[MCK_3363335_7]**  | **3.0**  **[MCK_3372311_6]**  | **2.8**  **[0000927653-24-000033_mck_exhibit991x3312024.htm:2]**  | **2.6**  **[MCK_3397060_5]**  | **2.9**  **[MCK_3406144_6]** **[0000927653-24-000121_mck_exhibit991x9302024.htm:1]** **[0000927653-24-000121_mck_exhibit991x9302024.htm:2]**  |

40d7b49a5417774c5884eb3ff0701696db5b05fb3cbbe683ebfff8a9a6e88f5c

Adjustments for Non-Cash Items [USD, Millions]

Stock-Based Compensation [USD, Millions]

Changes in Working Capital [USD, Millions]

Capital Expenditures (CapEx) [USD, Millions]

Proceeds from / Repayments of Debt [USD, Millions]

Share Repurchases [USD, Millions]

Dividend Payments [USD, Millions]

Net Change in Cash [USD, Millions]

58a0f2c1861870476aa25f9461f6ed66eccd83f5840a0f065f7114e885b354ea

McKesson Corporation is a leading healthcare services and information technology company that operates through four main segments, focusing on the distribution of pharmaceutical and medical products, which account for the majority of its revenues **[0000927653-24-000021_mck-20231231.htm:43]** **[0000927653-24-000125_mck-20240930.htm:40]** **[0000927653-24-000125_mck-20240930.htm:36]** **[0000927653-24-000035_mck-20240331.htm:171]** **[0000927653-24-000098_mck-20240630.htm:29]** **[0000927653-24-000035_mck-20240331.htm:57]** **[0000927653-24-000035_mck-20240331.htm:4]** **[0000927653-24-000035_mck-20240331.htm:58]**. The company distributes branded, generic, specialty, biosimilar, and over-the-counter pharmaceutical drugs and healthcare-related products in the United States, and provides practice management, technology, clinical support, and business solutions to specialty practices **[0000927653-24-000021_mck-20231231.htm:43]** **[0000927653-24-000125_mck-20240930.htm:40]** **[0000927653-24-000125_mck-20240930.htm:36]** **[0000927653-24-000035_mck-20240331.htm:171]** **[0000927653-24-000098_mck-20240630.htm:29]** **[0000927653-24-000035_mck-20240331.htm:57]** **[0000927653-24-000035_mck-20240331.htm:4]** **[0000927653-24-000035_mck-20240331.htm:58]**. McKesson also addresses medication access and affordability challenges, offers medical-surgical supply distribution, and operates internationally in Canada and Europe **[0000927653-24-000125_mck-20240930.htm:36]** **[0000927653-24-000035_mck-20240331.htm:171]** **[0000927653-24-000098_mck-20240630.htm:29]** **[0000927653-24-000125_mck-20240930.htm:41]** **[0000927653-24-000021_mck-20231231.htm:39]** **[0000927653-24-000035_mck-20240331.htm:58]**.

1. **U.S. Pharmaceutical** - Distributes branded, generic, specialty, biosimilar, and over-the-counter pharmaceutical drugs and other healthcare-related products in the United States, and provides practice management, technology, clinical support, and business solutions to community-based oncology and other specialty practices **[0000927653-24-000021_mck-20231231.htm:43]** **[0000927653-24-000125_mck-20240930.htm:40]** **[0000927653-24-000125_mck-20240930.htm:36]** **[0000927653-24-000035_mck-20240331.htm:171]** **[0000927653-24-000098_mck-20240630.htm:29]** **[0000927653-24-000035_mck-20240331.htm:57]** **[0000927653-24-000035_mck-20240331.htm:4]** **[0000927653-24-000035_mck-20240331.htm:58]**.
2. **Prescription Technology Solutions (RxTS)** - Addresses medication access, affordability, and adherence challenges by connecting patients, pharmacies, providers, pharmacy benefit managers, health plans, and biopharma companies, offering prescription price transparency, benefit insight, dispensing support services, and third-party logistics **[0000927653-24-000125_mck-20240930.htm:36]** **[0000927653-24-000035_mck-20240331.htm:171]** **[0000927653-24-000098_mck-20240630.htm:29]** **[0000927653-24-000125_mck-20240930.htm:41]** **[0000927653-24-000021_mck-20231231.htm:39]** **[0000927653-24-000035_mck-20240331.htm:58]**.
3. **Medical-Surgical Solutions** - Provides medical-surgical supply distribution, logistics, and other services to healthcare providers, including physician offices, surgery centers, nursing homes, hospital reference labs, and home health care agencies, offering national brand medical-surgical products and McKesson's own line of products **[0000927653-24-000125_mck-20240930.htm:36]** **[0000927653-24-000035_mck-20240331.htm:171]** **[0000927653-24-000098_mck-20240630.htm:29]** **[0000927653-24-000125_mck-20240930.htm:41]** **[0000927653-24-000021_mck-20231231.htm:39]** **[0000927653-24-000035_mck-20240331.htm:58]**.
4. **International** - Includes operations in Canada and Europe, providing non-U.S.-based drug distribution services, specialty pharmacy, retail, and infusion care services, with Canadian operations delivering medicines, supplies, and information technology solutions, and European operations focusing on distribution and services in Norway **[0000927653-24-000125_mck-20240930.htm:36]** **[0000927653-24-000035_mck-20240331.htm:171]** **[0000927653-24-000098_mck-20240630.htm:29]** **[0000927653-24-000125_mck-20240930.htm:41]** **[0000927653-24-000021_mck-20231231.htm:39]** **[0000927653-24-000035_mck-20240331.htm:58]**.

5436a0147fa15547581dc151c15af72bc542b4a831cb85c90338527f8f8cd4af

1. With the acquisition of Rx Savings Solutions aiming to provide price transparency to employers and employees, how does McKesson plan to leverage this capability to impact drug pricing or influence drug utilization patterns, and what is the long-term strategic vision for integrating this asset into your overall strategy?
2. Given the evolving landscape of U.S. retail pharmacies and the closures of many stores, would McKesson consider changing its domestic strategy by owning a virtual pharmacy to capitalize on emerging opportunities, despite previous beliefs about customer conflict and operational challenges?
3. As oncology care shifts towards value-based models, how is McKesson adapting its services to support providers in this transition, and what specific initiatives or partnerships are you pursuing to facilitate success in value-based oncology care?
4. In light of competitive pressures from companies serving both acute care facilities and alternate sites, especially with large integrated delivery networks (IDNs) owning both assets, how does McKesson plan to address potential market changes and growth opportunities, and is there a need to rethink your approach to the medical distribution market?
5. Considering your expansion into specialties like retina and ophthalmology through acquisitions, does McKesson have plans to build comprehensive platforms in other specialty areas similar to your oncology platform, and how do you evaluate the potential for achieving similar success outside of oncology?

f317d2685e1f22a9c1fea2a4b71431bd2baf422542eb4a4e79a02c7db066016b

Total Revenue [USD, Millions]

Cost of Goods Sold (COGS) [USD, Millions]

SG&A [USD, Millions]

R&D [USD, Millions]

D&A [USD, Millions]

Interest Expense [USD, Millions]

Operating Income (EBIT) [USD, Millions]

Net Income [USD, Millions]

EPS - Basic [USD]

EPS - Diluted [USD]

1a79e7b0470043c1aeb973940b39c4c258812519af229189993ded0e6f5523c8

- **Cencora, Inc.** - Mentioned as one of the largest competitors in distribution, wholesaling, and logistics  **[0000927653-24-000035_mck-20240331.htm:11]** .
- **Cardinal Health, Inc.** - Mentioned as one of the largest competitors in distribution, wholesaling, and logistics  **[0000927653-24-000035_mck-20240331.htm:11]** .

61ff8ea79a431568ae16565a6e41838406e390364988601bb2df718b34501975

International

- Europe

- Canada

U.S. Pharmaceutical

United States

Foreign

North America Pharmaceutical Distribution and Services

International Pharmaceutical Distribution and Services

Medical-Surgical Distribution and Services

Total Revenue

6197d9b5d680ef61cda6ae6c2db80c32170f0091113ff973e39d8390d17e3dd5

Prescription Technology Solutions

Medical-Surgical Solutions

Corporate

Other

Distribution Solutions

- North America Pharmaceutical Distribution & Services

- International Pharmaceutical Distribution & Services

Technology Solutions

a89bac801368a0cdef5c938ad7b8442eea60f5b82878ad4fd5101b4845725e6a

### Q2 2025 Earnings Call
- **Issued Period**: Q2 2025
- **Guided Period**: FY 2025

**Guidance:**
1. **Revenue Growth**: 15% to 17%
2. **Operating Profit Growth**: 13% to 15%
3. **Earnings Per Diluted Share (EPS)**: $32.40 to $33 (18% to 20% growth)
4. **International Segment**:
   - Revenue increase: 5% to 9%
   - Operating profit increase: 16% to 20%
5. **Corporate Expenses**: $510 million to $560 million
6. **Interest Expense**: $240 million to $260 million
7. **Income Attributable to Non-Controlling Interest**: $180 million to $190 million
8. **Effective Tax Rate**: 17% to 19%
9. **Free Cash Flow**: $4.8 billion to $5.2 billion
10. **Share Repurchases**: $3.2 billion
11. **Weighted Average Diluted Shares Outstanding**: 127 million to 129 million
12. **U.S. Pharmaceutical Segment**:
    - Revenue increase: 16% to 19%
    - Operating profit increase: 9% to 11%
13. **Prescription Technology Solutions Segment**:
    - Revenue increase: 8% to 12%
    - Operating profit increase: 11% to 15%
14. **Medical-Surgical Solutions**:
    - Revenue increase: 1% to 5%
    - Operating profit at the low end of 6% to 8%  **[MCK_3406144_10]** **[MCK_3406144_9]** **[MCK_3406144_7]** **[MCK_3406144_8]** .

### Q1 2025 Earnings Call
- **Issued Period**: Q1 2025
- **Guided Period**: FY 2025

**Guidance:**
1. **Revenue Growth**: 13% to 15%
2. **Operating Profit Growth**: 10% to 15%
3. **Earnings Per Diluted Share**: $31.75 to $32.55 (16% to 19% growth)
4. **International Segment Revenue**: 4% to 8%
5. **International Segment Operating Profit**: 8% to 12%
6. **Corporate Expenses**: $495 million to $555 million
7. **Interest Expense**: $245 million to $265 million
8. **Income Attributable to Noncontrolling Interest**: $175 million to $185 million
9. **Effective Tax Rate**: 17% to 19%
10. **Free Cash Flow**: $4.8 billion to $5.2 billion
11. **Share Repurchases**: $2.8 billion
12. **Weighted Average Diluted Shares Outstanding**: 128 million to 130 million
13. **U.S. Pharmaceutical Segment Revenue**: 13% to 16%
14. **U.S. Pharmaceutical Segment Operating Profit**: 8% to 10%
15. **Prescription Technology Solutions Segment Revenue**: 14% to 18%
16. **Prescription Technology Solutions Segment Operating Profit**: 11% to 15%
17. **Medical-Surgical Solutions Segment Revenue**: 3% to 7%
18. **Medical-Surgical Solutions Segment Operating Profit**: Low end of 6% to 8%  **[MCK_3397060_8]** **[MCK_3397060_6]** **[MCK_3397060_7]** .

### Q4 2024 Earnings Call
- **Issued Period**: Q4 2024
- **Guided Period**: FY 2025

**Guidance:**
1. **Interest Expense**: $220 million to $240 million
2. **Income Attributable to Noncontrolling Interest**: $140 million to $160 million
3. **Effective Tax Rate**: 18% to 20%
4. **Free Cash Flow**: $4.8 billion to $5.2 billion
5. **Share Repurchases**: $2.8 billion
6. **Weighted Average Diluted Shares Outstanding**: 128 million to 130 million
7. **Revenue Growth**: 15% to 17%
8. **Operating Profit Growth**: 9% to 14%
9. **Earnings Per Diluted Share**: $31.25 to $32.05 (14% to 17% growth)
10. **U.S. Pharmaceutical Revenues**: 16% to 19%
11. **U.S. Pharmaceutical Operating Profit**: 8% to 10%
12. **Prescription Technology Solutions Revenues**: 18% to 22%
13. **Prescription Technology Solutions Operating Profit**: 12% to 16%
14. **Medical-Surgical Solutions Revenues**: 4% to 8%
15. **Medical-Surgical Solutions Operating Profit**: 6% to 8%
16. **International Segment Revenues**: 4% to 8%
17. **International Segment Operating Profit**: 6% to 10%
18. **Corporate Expenses**: $580 million to $640 million  **[MCK_3386863_8]** **[MCK_3386863_6]** **[MCK_3386863_7]** .

### Q3 2024 Earnings Call
- **Issued Period**: Q3 2024
- **Guided Period**: FY 2024

**Guidance:**
1. **U.S. Pharmaceutical Segment**:
   - Revenue increase: 16% to 18%
   - Operating profit increase: 6% to 8% (11% to 14% excluding COVID-19 impact)
2. **Prescription Technology Solutions Segment**:
   - Revenue growth: 9% to 13%
   - Operating profit growth: 24% to 28%
3. **Medical-Surgical Solutions Segment**:
   - Revenue growth: Flat to 4%
   - Operating profit decrease: 11% to 15% (6% to 8% excluding COVID-19 impact)
4. **International Segment**:
   - Revenue decline: 29% to 33%
   - Operating profit decline: 21% to 26%
5. **Corporate Segment Expenses**: $615 million to $655 million
6. **Interest Expense**: $220 million to $230 million
7. **Income Attributable to Noncontrolling Interest**: $155 million to $165 million
8. **Effective Tax Rate**: 18% to 19%
9. **Free Cash Flow**: $3.2 billion to $3.6 billion
10. **Share Repurchases**: $3 billion to $3.5 billion
11. **Weighted Average Diluted Shares Outstanding**: 134 million
12. **Earnings Per Diluted Share**: $27.25 to $27.65
13. **Operating Profit**: 2% decline to 1% growth (8% to 11% excluding certain items)  **[MCK_3372311_7]** **[MCK_3372311_8]** .

b676855d59cd706d3d7a36b043bedba4f7a1da7e64dd2b755c1bbb0968cf8ba2

23794d91c53ae875c8e247d72561e35d9d06ee07c70c9e0dbcc977a6d161504a

| Name              | Position                                                      | Start Date         | Short Bio                                                                                                                                                                                                 |
|-------------------|---------------------------------------------------------------|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Brian S. Tyler    | Chief Executive Officer                                       | April 2019         | Brian S. Tyler has served as the Chief Executive Officer of McKesson Corporation since April 2019. He has held various leadership positions within McKesson and has over 25 years of business and healthcare experience  **[0000927653-24-000065_mck-20240621.htm:22]** **[0000927653-24-000051_mck-20240607.htm:22]** **[0001193125-23-164501_d407671ddef14a.htm:16]** **[0000927653-24-000035_mck-20240331.htm:54]** **[0000927653-23-000038_mck-20230331.htm:48]** .          |
| Britt J. Vitalone | Executive Vice President and Chief Financial Officer          | January 2018       | Britt J. Vitalone has been serving as the Executive Vice President and Chief Financial Officer of McKesson Corporation since January 2018. He has been with the company for 17 years as of the fiscal year 2023  **[0000927653-24-000035_mck-20240331.htm:54]** **[0000927653-23-000038_mck-20230331.htm:48]** .                           |
| Michele Lau       | Executive Vice President and Chief Legal Officer              | January 1, 2024    | Michele Lau is the Executive Vice President and Chief Legal Officer at McKesson Corporation, a position she will hold starting January 1, 2024. She previously served as the Chief Legal Officer at GoDaddy  **[0000927653-24-000035_mck-20240331.htm:54]** **[0000927653-24-000051_mck-20240607.htm:2]** .                                |
| LeAnn B. Smith    | Executive Vice President and Chief Human Resources Officer    | December 2022      | LeAnn B. Smith is the Executive Vice President and Chief Human Resources Officer at McKesson Corporation since December 2022. She previously worked at Walmart Inc. as the Chief People Leader for Global Corporate Functions  **[0000927653-24-000035_mck-20240331.htm:54]** **[0000927653-23-000038_mck-20230331.htm:48]** .             |
| Thomas L. Rodgers | Executive Vice President and Chief Strategy and Business Development Officer | June 2020          | Thomas L. Rodgers has been serving as the Executive Vice President and Chief Strategy and Business Development Officer at McKesson Corporation since June 2020. He was previously the Senior Vice President and Managing Director of McKesson Ventures  **[0000927653-24-000035_mck-20240331.htm:54]** **[0000927653-23-000038_mck-20230331.htm:48]** . |

bc95da8cbe9b6fed733964a332c2ea9c50c1f4cab82a95bc1efc41c6b552013d

| Program Details         | Program 1     |
|-------------------------|---------------|
| Approval Date           | **July 2024**  **[0000927653-24-000125_mck-20240930.htm:67]** **[0000927653-24-000125_mck-20240930.htm:59]** **[0000927653-24-000125_mck-20240930.htm:33]**  |
| End Date/Duration       | N/A           |
| Total additional amount | **$4.0 billion**  **[0000927653-24-000125_mck-20240930.htm:67]** **[0000927653-24-000125_mck-20240930.htm:59]** **[0000927653-24-000125_mck-20240930.htm:33]**  |
| Remaining authorization amount | **$8.6 billion**  **[0000927653-24-000125_mck-20240930.htm:59]** **[0000927653-24-000125_mck-20240930.htm:33]**  |
| Details                 | The Board approved an increase in the authorization for the repurchase of common stock.  **[0000927653-24-000125_mck-20240930.htm:67]** **[0000927653-24-000125_mck-20240930.htm:59]** **[0000927653-24-000125_mck-20240930.htm:33]**  |

36d44bf5d1a77e90284b407f1c9b8f7987b3671a388b3a71a6124d638529485a

- **Margin compression due to revenue mix shift towards lower-margin businesses**: McKesson's accelerated revenue growth is driven by its 3PL business, which represents **over half of the segment's revenue** but contributes **less than 10% of adjusted operating profit**, leading to potential pressure on margins.  **[MCK_3386863_16]**
- **Declining contributions from COVID-19 programs**: The company reported that commercial COVID vaccine revenues were **nonmaterial** in the fourth quarter, indicating a reduction in pandemic-related revenue streams that previously supported growth.  **[MCK_3386863_18]**
- **Anticipated onboarding costs for new contracts**: While expanding partnerships such as the one with Optum, McKesson expects to incur some onboarding costs. Although management states these costs are **not material** and included in guidance, they could still impact short-term profitability.  **[MCK_3386863_7]**

2b5c34ad63b3ef7086ec1d4a72a1265333ed55e9fe94b45105f41df2e8080160

**Annual guidance for FY 2025:**
- **Revenue Growth**: 15% to 17%  **[MCK_3406144_10]** **[MCK_3406144_9]** **[MCK_3406144_7]** **[MCK_3406144_8]**  (raised from 13% to 15%  **[MCK_3397060_8]** **[MCK_3397060_6]** **[MCK_3397060_7]** )  
- **Operating Profit Growth**: 13% to 15%  **[MCK_3406144_10]** **[MCK_3406144_9]** **[MCK_3406144_7]** **[MCK_3406144_8]**  (raised from 10% to 15%  **[MCK_3397060_8]** **[MCK_3397060_6]** **[MCK_3397060_7]** )  
- **Earnings Per Diluted Share (EPS)**: $32.40 to $33  **[MCK_3406144_10]** **[MCK_3406144_9]** **[MCK_3406144_7]** **[MCK_3406144_8]**  (raised from $31.75 to $32.55  **[MCK_3397060_8]** **[MCK_3397060_6]** **[MCK_3397060_7]** )  
- **International Segment Revenue**: 5% to 9%  **[MCK_3406144_10]** **[MCK_3406144_9]** **[MCK_3406144_7]** **[MCK_3406144_8]**  (raised from 4% to 8%  **[MCK_3397060_8]** **[MCK_3397060_6]** **[MCK_3397060_7]** )  
- **International Segment Operating Profit**: 16% to 20%  **[MCK_3406144_10]** **[MCK_3406144_9]** **[MCK_3406144_7]** **[MCK_3406144_8]**  (raised from 8% to 12%  **[MCK_3397060_8]** **[MCK_3397060_6]** **[MCK_3397060_7]** )  
- **Corporate Expenses**: $510 million to $560 million  **[MCK_3406144_10]** **[MCK_3406144_9]** **[MCK_3406144_7]** **[MCK_3406144_8]**  (raised from $495 million to $555 million  **[MCK_3397060_8]** **[MCK_3397060_6]** **[MCK_3397060_7]** )  
- **Interest Expense**: $240 million to $260 million  **[MCK_3406144_10]** **[MCK_3406144_9]** **[MCK_3406144_7]** **[MCK_3406144_8]**  (lowered from $245 million to $265 million  **[MCK_3397060_8]** **[MCK_3397060_6]** **[MCK_3397060_7]** )  
- **Income Attributable to Non-Controlling Interest**: $180 million to $190 million  **[MCK_3406144_10]** **[MCK_3406144_9]** **[MCK_3406144_7]** **[MCK_3406144_8]**  (raised from $175 million to $185 million  **[MCK_3397060_8]** **[MCK_3397060_6]** **[MCK_3397060_7]** )  
- **Effective Tax Rate**: 17% to 19%  **[MCK_3406144_10]** **[MCK_3406144_9]** **[MCK_3406144_7]** **[MCK_3406144_8]**  (no change from prior guidance  **[MCK_3397060_8]** **[MCK_3397060_6]** **[MCK_3397060_7]** )  
- **Free Cash Flow**: $4.8 billion to $5.2 billion  **[MCK_3406144_10]** **[MCK_3406144_9]** **[MCK_3406144_7]** **[MCK_3406144_8]**  (no change from prior guidance  **[MCK_3397060_8]** **[MCK_3397060_6]** **[MCK_3397060_7]** )  
- **Share Repurchases**: $3.2 billion  **[MCK_3406144_10]** **[MCK_3406144_9]** **[MCK_3406144_7]** **[MCK_3406144_8]**  (raised from $2.8 billion  **[MCK_3397060_8]** **[MCK_3397060_6]** **[MCK_3397060_7]** )  
- **Weighted Average Diluted Shares Outstanding**: 127 million to 129 million  **[MCK_3406144_10]** **[MCK_3406144_9]** **[MCK_3406144_7]** **[MCK_3406144_8]**  (lowered from 128 million to 130 million  **[MCK_3397060_8]** **[MCK_3397060_6]** **[MCK_3397060_7]** )  
- **U.S. Pharmaceutical Segment Revenue**: 16% to 19%  **[MCK_3406144_10]** **[MCK_3406144_9]** **[MCK_3406144_7]** **[MCK_3406144_8]**  (raised from 13% to 16%  **[MCK_3397060_8]** **[MCK_3397060_6]** **[MCK_3397060_7]** )  
- **U.S. Pharmaceutical Segment Operating Profit**: 9% to 11%  **[MCK_3406144_10]** **[MCK_3406144_9]** **[MCK_3406144_7]** **[MCK_3406144_8]**  (raised from 8% to 10%  **[MCK_3397060_8]** **[MCK_3397060_6]** **[MCK_3397060_7]** )  
- **Prescription Technology Solutions Segment Revenue**: 8% to 12%  **[MCK_3406144_10]** **[MCK_3406144_9]** **[MCK_3406144_7]** **[MCK_3406144_8]**  (lowered from 14% to 18%  **[MCK_3397060_8]** **[MCK_3397060_6]** **[MCK_3397060_7]** )  
- **Prescription Technology Solutions Segment Operating Profit**: 11% to 15%  **[MCK_3406144_10]** **[MCK_3406144_9]** **[MCK_3406144_7]** **[MCK_3406144_8]**  (no change from prior guidance  **[MCK_3397060_8]** **[MCK_3397060_6]** **[MCK_3397060_7]** )  
- **Medical-Surgical Solutions Segment Revenue**: 1% to 5%  **[MCK_3406144_10]** **[MCK_3406144_9]** **[MCK_3406144_7]** **[MCK_3406144_8]**  (lowered from 3% to 7%  **[MCK_3397060_8]** **[MCK_3397060_6]** **[MCK_3397060_7]** )  
- **Medical-Surgical Solutions Segment Operating Profit**: Low end of 6% to 8%  **[MCK_3406144_10]** **[MCK_3406144_9]** **[MCK_3406144_7]** **[MCK_3406144_8]**  (no change from prior guidance  **[MCK_3397060_8]** **[MCK_3397060_6]** **[MCK_3397060_7]** )  

a63d60c3b7a90c3621f4916acfc11b1198a938fc2048490b3b9fcdfa9ed6945b

- **Expected operating profit growth in the U.S. Pharmaceutical segment driven by specialty and oncology business, anticipated to reach 8% to 10% for the full year.**  **[MCK_3397060_11]**
- **Sequential growth in GLP-1 medication distribution exceeding expectations, positively impacting gross profit.**  **[MCK_3397060_14]** ,  **[MCK_3397060_16]**
- **Strong performance and strategic positioning of ClarusONE in generic sourcing, providing competitive low costs and supply availability, supporting future growth.**  **[MCK_3397060_17]**

53f609e33edcafc1d105241c0139735e343a211f04df33883d668259b904f2fa

| Name                  | Start Date  | End Date | Reason for Change |
|-----------------------|-------------|----------|-------------------|
| Deloitte & Touche LLP | May 7, 2024  **[0000927653-24-000035_mck_exhibit23x3312024.htm:0]**  | Present  | Current auditor   |

937e85b37177ee77bda7666f2830ba430cbc2ef44a9f506a61096727ef0bf774

0e783621fec5de830b49b91229f06c3f2fae983c0516ac9f9fd4ab2464c8c2d0

- Total Revenue: $93,651 million (**+21%** YoY)  **[0000927653-23-000083_mck-20230930.htm:49]** **[0000927653-24-000125_mck-20240930.htm:37]**   
- U.S. Pharmaceutical: $85,726 million (**+23%** YoY)  **[0000927653-23-000083_mck-20230930.htm:49]** **[0000927653-24-000125_mck-20240930.htm:37]**   
- Prescription Technology Solutions: $1,265 million (+11% YoY)  **[0000927653-23-000083_mck-20230930.htm:49]** **[0000927653-24-000125_mck-20240930.htm:37]**   
- International: $3,709 million (+7% YoY)  **[0000927653-23-000083_mck-20230930.htm:49]** **[0000927653-24-000125_mck-20240930.htm:37]**   
- Operating Income: $578 million (-39% YoY)  **[0000927653-23-000083_mck-20230930.htm:5]** **[0000927653-24-000125_mck-20240930.htm:1]**   
- Net Income: $287 million (**-59%** YoY)  **[0000927653-23-000083_mck-20230930.htm:5]** **[0000927653-24-000125_mck-20240930.htm:1]**   
- EPS (Basic): $1.90 (**-62%** YoY)  **[0000927653-23-000083_mck-20230930.htm:5]** **[0000927653-24-000125_mck-20240930.htm:1]**   

c57024d1e11e128df5e563fcc8541ca9c355d3cf06ea1a4c97ffb966e645c026

03ea1fdfaa0220e3313b56680c7cc96b5ba42d6992a81d738c620bc5ad7c3dd4

1. **Optum Contract Impact**  
   **Q:** Is increased pharma growth tied to Optum win?  
   **A:** Management confirms that the new contract with Optum contributes to the increased pharmaceutical operating profit guidance for fiscal 2025, raising growth expectations from **5–7% to 8–10%**.  **[MCK_3386863_11]**  The Optum contract expands services to include pharmaceutical distribution across home delivery, infusion, care, and specialty pharmacy.  **[MCK_3386863_11]**  While specific contributions from Optum are not disclosed, management emphasizes the significant momentum and investments in the segment, with the Optum partnership reflecting their enhanced capabilities.  **[MCK_3386863_9]** **[MCK_3386863_11]** 

2. **Pharma Segment Momentum**  
   **Q:** What drives higher pharma profit outlook?  
   **A:** The U.S. Pharma segment's adjusted operating profit has grown at a compound annual growth rate of about **6%** over the last four years, aligning with long-term targets.  **[MCK_3386863_11]**  Excluding COVID-related programs, the segment grew **12%** in fiscal 2024.  **[MCK_3386863_11]**  The increased guidance reflects strong momentum, continued investments, and enhanced sourcing capabilities, positioning the segment for sustained growth.  **[MCK_3386863_11]** 

3. **RxTS Growth and Margins**  
   **Q:** Why is RxTS revenue up but margins down?  
   **A:** The accelerated top-line growth in RxTS is driven by the 3PL business, which represents over half of the segment's revenue but less than **10%** of adjusted operating profit.  **[MCK_3386863_16]**  As 3PL revenue grows faster, it dilutes overall margins due to its lower profitability.  **[MCK_3386863_16]**  Underlying technology businesses continue to grow consistently, with investments in the business supporting future growth.  **[MCK_3386863_13]** **[MCK_3386863_16]** 

4. **Oncology Expansion Opportunities**  
   **Q:** How will you expand in oncology?  
   **A:** Management prioritizes investing to grow the oncology business organically and through strategic acquisitions aligned with their community oncology strategy.  **[MCK_3386863_12]**  They seek assets that enhance their U.S. Oncology footprint, EMR capabilities, data insights, and clinical trials acceleration.  **[MCK_3386863_12]**  Recent investments in AI and small acquisitions improve efficiency and support record growth in the oncology segment.  **[MCK_3386863_12]** 

5. **Competitive Edge in Specialty**  
   **Q:** Do you have scale advantage in specialty?  
   **A:** Management highlights significant investments in modernizing distribution infrastructure, including efficient cold chain handling and a compliant network.  **[MCK_3386863_14]**  Scale is acknowledged as beneficial, and the company positions itself as a solution-oriented, value-added partner with a broad array of capabilities.  **[MCK_3386863_14]**  Investments in oncology and pharma services have enhanced their value proposition and attractiveness to large clients like Optum and CVS.  **[MCK_3386863_14]** 

6. **Pricing Environment Outlook**  
   **Q:** What are assumptions on pharma pricing?  
   **A:** The company anticipates a stable and competitive pricing environment for both branded and generic pharmaceuticals, consistent with prior years.  **[MCK_3386863_17]**  They do not foresee significant changes in pricing trends for fiscal 2025 and plan to continue driving value through sourcing operations.  **[MCK_3386863_17]** 

7. **Biopharma Investment Focus**  
   **Q:** Nature of investments in RxTS?  
   **A:** Investments in the prescription transaction business are primarily in technology to enhance scaled networks and provider connectivity.  **[MCK_3386863_15]**  The aim is to innovate and solve new problems for biopharma partners, increasing the value and returns their products provide.  **[MCK_3386863_15]**  The company is committed to increasing investments when opportunities arise.  **[MCK_3386863_15]** 

8. **Med Surg Data Strategy**  
   **Q:** How is data used in med surg segment?  
   **A:** The acquisition of Compile is seen as a foundational data investment to augment existing datasets and accelerate value-added services in the medical business.  **[MCK_3386863_15]**  By leveraging extensive provider relationships, the company aims to unlock unique value through enhanced data service offerings in the med surg segment.  **[MCK_3386863_15]** 

9. **Impact of Insulin and COVID**  
   **Q:** Effects of insulin price cuts and COVID vaccines?  
   **A:** Management reports no specific impact from insulin list price changes to call out.  **[MCK_3386863_18]**  Regarding COVID vaccines, they noted a non-material contribution in the fourth quarter, as they lapped prior year COVID programs and saw lower contributions from commercial vaccines compared to the third quarter.  **[MCK_3386863_18]** 

10. **GLP-1s and Prior Authorization**  
    **Q:** Did GLP-1s boost prior authorization business?  
    **A:** The prior authorization business saw growth in the first quarter, but overall 3PL performance was lower due to customer contract considerations.  **[MCK_3386863_10]**  While employer coverage for GLP-1s increased, the company's investments in access solutions support future growth, and they achieved a **23%** year-over-year bottom-line growth in the business.  **[MCK_3386863_10]** 

71c4f86d0feb10d8c8d05020521b164a3b5044d6716c0f3da386043e3c7c8580

- McKesson's **U.S. Pharmaceutical segment operating profit growth** is expected to be **8% to 10%** in fiscal 2025, exceeding the long-term target of 5% to 7%, driven by momentum in core distribution and the expanded partnership with **Optum**.  **[MCK_3386863_11]**
- The company has expanded its relationship with **Optum**, starting a new **5-year contract** beginning July 1, 2024, which includes servicing Optum's home delivery, infusion, care, and specialty pharmacy, highlighting McKesson's differentiated capabilities.  **[MCK_3386863_11]** **[MCK_3386863_9]**
- McKesson continues to invest in **oncology** as a strategic growth area, with opportunities for both organic and inorganic growth, leveraging its strong capital position to drive further expansion in its oncology platform and services.  **[MCK_3386863_12]**

7f89496766ad90b1372d85f2e4d889d66c6d30fd27aec4a293ca268e81a17234

| Year  | Amount Due (in millions) | Debt Type                  | Interest Rate | % of Total Debt                                                                 |
|-------|---------------------------|----------------------------|---------------|---------------------------------------------------------------------------------|
| 2025  | $1,167 **[0000927653-24-000125_mck-20240930.htm:16]**           | 0.90% U.S. Dollar Notes, 1.50% Euro Notes **[0000927653-24-000125_mck-20240930.htm:16]** | 0.90%, 1.50% **[0000927653-24-000125_mck-20240930.htm:16]** | 20.3% = (1,167 / 5,744) * 100 **[0000927653-24-000125_mck-20240930.htm:16]**                                           |
| 2026  | $1,055 **[0000927653-24-000125_mck-20240930.htm:16]**           | 1.30% U.S. Dollar Notes, 1.63% Euro Notes **[0000927653-24-000125_mck-20240930.htm:16]** | 1.30%, 1.63% **[0000927653-24-000125_mck-20240930.htm:16]** | 18.4% = (1,055 / 5,744) * 100 **[0000927653-24-000125_mck-20240930.htm:16]**                                           |
| 2027  | $150 **[0000927653-24-000125_mck-20240930.htm:16]**             | 7.65% U.S. Dollar Debentures **[0000927653-24-000125_mck-20240930.htm:16]**             | 7.65% **[0000927653-24-000125_mck-20240930.htm:16]**         | 2.6% = (150 / 5,744) * 100 **[0000927653-24-000125_mck-20240930.htm:16]**                                              |
| 2028  | $742 **[0000927653-24-000125_mck-20240930.htm:16]**             | 3.95% U.S. Dollar Notes, 4.90% U.S. Dollar Notes **[0000927653-24-000125_mck-20240930.htm:16]** | 3.95%, 4.90% **[0000927653-24-000125_mck-20240930.htm:16]** | 12.9% = (742 / 5,744) * 100 **[0000927653-24-000125_mck-20240930.htm:16]**                                             |
| 2029  | $1,298 **[0000927653-24-000125_mck-20240930.htm:16]**           | 4.75% U.S. Dollar Notes, 4.25% U.S. Dollar Notes, 3.13% Sterling Notes **[0000927653-24-000125_mck-20240930.htm:16]** | 4.75%, 4.25%, 3.13% **[0000927653-24-000125_mck-20240930.htm:16]** | 22.6% = (1,298 / 5,744) * 100 **[0000927653-24-000125_mck-20240930.htm:16]**                                           |
| 2033  | $597 **[0000927653-24-000125_mck-20240930.htm:16]**             | 5.10% U.S. Dollar Notes **[0000927653-24-000125_mck-20240930.htm:16]**                 | 5.10% **[0000927653-24-000125_mck-20240930.htm:16]**         | 10.4% = (597 / 5,744) * 100 **[0000927653-24-000125_mck-20240930.htm:16]**                                             |
| 2041  | $218 **[0000927653-24-000125_mck-20240930.htm:16]**             | 6.00% U.S. Dollar Notes **[0000927653-24-000125_mck-20240930.htm:16]**                 | 6.00% **[0000927653-24-000125_mck-20240930.htm:16]**         | 3.8% = (218 / 5,744) * 100 **[0000927653-24-000125_mck-20240930.htm:16]**                                              |
| 2044  | $255 **[0000927653-24-000125_mck-20240930.htm:16]**             | 4.88% U.S. Dollar Notes **[0000927653-24-000125_mck-20240930.htm:16]**                 | 4.88% **[0000927653-24-000125_mck-20240930.htm:16]**         | 4.4% = (255 / 5,744) * 100 **[0000927653-24-000125_mck-20240930.htm:16]**                                              |

7da4fe8b7c749ae3f7fbbbab423b7f021b9a0cfac0f3d968a05029e14a67a88c

1. **Impact of IRA on Oncology**

   **Q:** How will IRA affect oncology drug pricing?

   **A:** Management acknowledged that the impact of the IRA on Part B oncology drugs is uncertain but could affect drug pricing and margins. They are engaging with stakeholders, educating on the issues, and closely monitoring developments, though it's too early to predict outcomes.  **[MCK_3407453_31]** 

2. **M&A Plans and Capital Deployment**

   **Q:** Will more capital be allocated to M&A?

   **A:** McKesson plans to continue share repurchases but emphasizes growing the company through strategic acquisitions like Florida Cancer Specialists. They focus on opportunities that fit their strategic pillars and offer the right financial returns, aiming to create the most shareholder value.  **[MCK_3407453_23]** 

3. **Oncology Business Growth**

   **Q:** What drives growth in oncology business?

   **A:** The lion's share of the oncology business is from distribution, but growth is fueled by adding new providers and expanding clinical trial capabilities, resulting in a **20% increase in accruals**. The overall oncology market has grown beyond the previous estimate of **$55 billion**, and McKesson continues to invest due to the strong drug pipeline and innovation.  **[MCK_3407453_14]** **[MCK_3407453_18]** 

4. **Impact of GLP-1s on Margins**

   **Q:** How do GLP-1s affect margins and reimbursement?

   **A:** GLP-1 products are a headwind to margins on distribution due to high inventory costs and logistics requirements. McKesson provides services on the prior authorization side, which offsets some margin pressure. They work to ensure fair value for services provided and manage customer needs across segments.  **[MCK_3407453_32]** 

5. **Florida Cancer Specialists Acquisition**

   **Q:** Where does EPS accretion from FCS come from?

   **A:** The accretion from the FCS acquisition is primarily from distribution and drug-related activities. Over time, McKesson expects to leverage capabilities and scale to drive efficiencies and cost benefits to customers. Financing costs are included in the accretion estimates.  **[MCK_3407453_47]** **[MCK_3407453_48]** 

6. **Medical Surgical Segment Outlook**

   **Q:** Confidence in long-term growth despite softness?

   **A:** Management maintains confidence in the long-term growth rate of the medical supply business, despite current softness and increased competitiveness. They have a strong history of growth and are making intentional investments in automation and data capabilities to optimize costs.  **[MCK_3407453_15]** **[MCK_3407453_37]** 

7. **CoverMyMeds Growth**

   **Q:** What's driving growth in CoverMyMeds?

   **A:** The provider network has grown to **750,000 providers**, driven by their leading position in electronic prior authorizations and the range of services offered. McKesson believes their connectivity and scale give them a competitive advantage.  **[MCK_3407453_25]** 

8. **Growth Outlook and Guidance**

   **Q:** Level of visibility into second-half earnings?

   **A:** Management expressed high confidence in the back half of the year, with strong visibility into earnings. They have conducted normal operating reviews and expect a strong second half based on current performance and business unit feedback.  **[MCK_3407453_52]** 

9. **Cell and Gene Therapy Opportunities**

   **Q:** How is McKesson positioned in cell and gene therapy?

   **A:** McKesson leverages its oncology capabilities to service a range of needs in cell and gene therapy, depending on each drug's requirements. They are positioned to provide logistics, specialty pharmacy, and distribution services, adapting to complex commercialization processes.  **[MCK_3407453_22]** 

10. **Health Mart and Independent Pharmacies**

    **Q:** What's the status of independent pharmacies?

    **A:** Health Mart continues to be a resilient group of independent pharmacies. McKesson supports them by providing sourcing, distribution, and reimbursement opportunities through Health Mart Atlas, helping them manage challenges in reimbursement.  **[MCK_3407453_49]** 

11. **Rx Savings Solutions Acquisition**

    **Q:** Update on Rx Savings Solutions acquisition?

    **A:** The acquisition has performed well over the last few years, offering price transparency services to employers and employees. It's a smaller part of McKesson's business but aligns with their strategy to add capabilities valued by biopharma customers.  **[MCK_3407453_35]** 

12. **Provider Turnover in Acquisitions**

    **Q:** Is there provider turnover after acquisitions?

    **A:** Provider turnover has been immaterial after acquisitions. Providers are often attracted to McKesson's platform for its capabilities in practice management, clinical trials, and cost efficiencies.  **[MCK_3407453_46]** 

13. **Competitive Environment in Prior Auth**

    **Q:** Any changes in electronic prior auth competition?

    **A:** McKesson continues to see growth in their network and believes they have the best position due to their connectivity and range of services. They are monitoring developments like AI but feel well-positioned due to their scale and capabilities.  **[MCK_3407453_25]** 

14. **Medical Surgical Product Exposure**

    **Q:** Any specific product exposure concerns?

    **A:** There are no specific product exposures to highlight, except for possible supplier disruptions. Service levels have improved, and McKesson manages through disruptions with a diversified supplier base.  **[MCK_3407453_26]** 

15. **Shift to Value-Based Care**

    **Q:** How is McKesson supporting value-based care?

    **A:** McKesson has participated in government programs supporting value-based care in oncology and has seen significant savings from these initiatives. They support providers who choose to participate and will continue to back such models.  **[MCK_3407453_56]** 

16. **Online Pharmacy Considerations**

    **Q:** Will McKesson own virtual pharmacies?

    **A:** McKesson has decided not to own retail pharmacies in the U.S., believing their customers run pharmacies better. They focus on supporting retail pharmacies through sourcing and distribution, not direct ownership.  **[MCK_3407453_50]** 

17. **Impact of COVID Vaccines**

    **Q:** Was Q2 the peak for COVID vaccines in P&L?

    **A:** COVID vaccines are not a material driver for the pharma distribution segment, and management is not particularly focused on them in this context.  **[MCK_3407453_54]** 

18. **Customer Compliance with GLP-1 Growth**

    **Q:** Are customers struggling with purchasing compliance due to GLP-1s?

    **A:** The growth of GLP-1 products can affect compliance requirements for generic purchasing among customers. McKesson works with customers to address any pressures and discuss impacts as needed.  **[MCK_3407453_42]** 

19. **RxTS Product Roadmap**

    **Q:** Is McKesson building or buying in RxTS?

    **A:** McKesson evaluates whether to build or buy based on the capability needed. They build adjacent solutions when possible but may acquire solutions that offer new capabilities valued by biopharma customers.  **[MCK_3407453_29]** 

20. **Change Healthcare Cyber Attack**

    **Q:** Did the cyber attack lead to new opportunities?

    **A:** McKesson's goal was to help customers through the issue and smooth the transition. They did not pursue it as an opportunity for competitive gain.  **[MCK_3407453_36]** 

137d2bd1754bbf8015218d31b2a288ec04f21def7f332398e0fbd4e2abac89af

- **Significant Growth in Oncology Platform Attracting Providers and Driving Expansion**: McKesson has been acquiring oncologists and enhancing its oncology platform, which is attracting providers due to the **platform and capabilities that help them practice better, more efficiently, and see more patients**. This includes benefits like **EMR integration with 2,700 providers** and expanded access to clinical trials through partnerships like **Sarah Cannon**, positioning McKesson to capitalize on the **greatest opportunity to help community cancer care be more quality and lower cost**.  **[MCK_3407453_56]**
- **Participation in Value-Based Care Models in Oncology Leading to Significant Savings**: McKesson has supported value-based care models, participated in government programs, and **providers within USAN drove a tremendous amount of savings**. With providers like **Florida Cancer** participating in value-based care initiatives, McKesson is ready to support more providers in this shift, aligning with the industry's move towards value-based care.  **[MCK_3407453_57]**
- **Rapid Growth in Access Solutions Driven by GLP-1s**: McKesson's **Access Solutions have been growing the fastest** due to the GLP-1 component. **Approximately 70% of revenue within Access comes from prior authorizations**, and **55%-65% of prior authorizations are GLP-1s**, indicating strong growth potential in this segment. Additionally, **affordability programs have had nice growth**, working closely with manufacturers on discounting or voucher programs.  **[MCK_3407453_45]**

02bc82a78a128fcf7bfd436ebcd6580a81bb82021cde80ed8b9c8dde62c56f37

1. **RxTS Guidance Adjustment**  
   **Q:** Why did you lower RxTS guidance?  
   **A:** We faced unexpected shifts in the mix of services within our access portfolio in the RxTS segment, with delays in product launches affecting both 3PL and access programs like prior authorizations. This resulted in a slower start to the year, so we moderately lowered full-year guidance by about **1% at the midpoint**.  **[MCK_3397060_10]** **[MCK_3397060_15]** **[MCK_3397060_18]** 

2. **GLP-1 Growth Impact**  
   **Q:** How did GLP-1s affect your performance and margins?  
   **A:** GLP-1 utilization remained stable and growing, with sequential growth higher than anticipated in the first quarter.  **[MCK_3397060_10]** **[MCK_3397060_14]**  This contributed positively to gross profit but also presented margin mix challenges due to higher growth in GLP-1 distribution transactions.  **[MCK_3397060_14]** **[MCK_3397060_16]** 

3. **HUMIRA Biosimilar Impact**  
   **Q:** How did the shift from HUMIRA to biosimilars affect revenue?  
   **A:** A customer formulary change shifted from branded HUMIRA to a biosimilar, reducing our revenue outlook. This is the primary reason for the lower contribution from branded pharmaceuticals in our U.S. Pharma segment guidance.  **[MCK_3397060_11]** **[MCK_3397060_12]** **[MCK_3397060_14]** 

4. **MedSurg Segment Challenges**  
   **Q:** What's affecting MedSurg performance and what actions are you taking?  
   **A:** There's significantly less demand for COVID-related products like test kits, leading to softness in our Medical-Surgical business.  **[MCK_3397060_12]**  We're responding by aligning our go-to-market strategies, organizational structure, and cost efficiencies to drive significant benefits starting in the second half of the year.  **[MCK_3397060_13]** 

5. **U.S. Pharma Growth Drivers**  
   **Q:** How will U.S. Pharma achieve **8-10%** growth guidance?  
   **A:** We expect continued growth in specialty and oncology, strong generics performance, and robust customer relationships to drive **8-10%** growth for the full year, unchanged from prior guidance.  **[MCK_3397060_11]** 

6. **ClarusONE Performance**  
   **Q:** How does ClarusONE impact your business amid market changes?  
   **A:** ClarusONE continues to perform well, positioning us for competitive low-cost generics and strong supply availability. Its strength contributes to our noncontrolling interest guidance and supports us as the market evolves with biosimilars and oncology products.  **[MCK_3397060_17]** 

7. **Oncology Expansion Strategy**  
   **Q:** What's your strategy for expanding the oncology business?  
   **A:** We've grown the U.S. Oncology Network to over **600 sites**, **31 states**, and **2,600 providers**. We plan to continue expanding through acquisitions and managed agreements, integrating our oncology assets under coordinated leadership to accelerate growth.  **[MCK_3397060_19]** 

8. **Gross Profit Variance**  
   **Q:** Did HUMIRA's shift impact your gross profit expectations?  
   **A:** Gross profit was generally in line with expectations. The higher-than-anticipated sequential growth in GLP-1 distribution transactions contributed positively to gross profit, offsetting any impact from the HUMIRA shift.  **[MCK_3397060_14]** 

9. **RxTS Margin Dynamics**  
   **Q:** Why is RxTS operating profit decline less than revenue decrease?  
   **A:** Over **50%** of RxTS revenue comes from 3PL services, contributing less than **10%** to operating profit. Higher-margin programs in access, affordability, and adherence solutions will drive improvement in the second half, so operating profit decline is less than the revenue change.  **[MCK_3397060_18]** 

10. **GLP-1 Supply and Economics**  
    **Q:** Can you improve margins as GLP-1 supply constraints ease?  
    **A:** We've seen improvements in GLP-1 supply recently. We're in ongoing discussions with manufacturers to ensure fair value for our services and to explore opportunities in core distribution and additional services through our Technology Solutions business.  **[MCK_3397060_16]** 

d63b1458fa3a0c688c4282cf5be9ab0a2961edbc30e5f7301089ea74a1cbd823

- **Prescription Technology Solutions segment experienced lower-than-expected results**, leading to a downward revision in guidance due to **product launch delays** and **slower demand** for access solutions.  **[MCK_3397060_18]** ,  **[MCK_3397060_15]** ,  **[MCK_3397060_7]**
- **Medical-Surgical Solutions segment delivered results below expectations**, with operating profit decreasing **15%** due to lower volumes in the primary care channel and decreased demand for COVID-related products, prompting cost-cutting initiatives.  **[MCK_3397060_6]** ,  **[MCK_3397060_12]**
- **Lower revenues from branded pharmaceuticals like HUMIRA** are impacting the U.S. Pharmaceutical segment due to formulary changes favoring biosimilars, affecting revenue guidance.  **[MCK_3397060_11]** ,  **[MCK_3397060_12]**

b586fc5782e245c9d3a078cc93b9560cf75a8ebdbcc82b33ffe5c9852000b53f

- **Heavy reliance on GLP-1 drugs for growth in the Access solutions segment may pose a risk if demand changes.**  **[MCK_3407453_45]**
- **Investments in data and analytics are creating a 2% headwind to MedSurg EBIT growth, potentially affecting profitability.**  **[MCK_3407453_37]**
- **McKesson's decision not to own U.S. pharmacies or enter hospital distribution may limit growth opportunities compared to competitors expanding in these areas.**  **[MCK_3407453_51]** **[MCK_3407453_20]**

7215cef2c8723b483b9b10a6fc80cb51a0fdff4260be2d02ddc2232be946d7d8

Mckesson Corp (MCK)

Financials