McKesson Corporation earnings call

… including contributions from acquisitions within the oncology and multispecialty segments. Turning now to third quarter segment results, which can be found on slides 8 through 12, and starting with North American Pharmaceutical. Revenues were $88.3 billion, an increase of 9%, driven by higher prescription volumes, including higher volumes across retail national account customers and continued specialty product distribution strength. GLP-1 distribution revenues were $14 billion in the quarter, up $3 billion, or 26%, when compared to the prior year. GLP-1 sequential revenue growth was 7%. The segment operating profit increased 6% to $872 million, benefiting from growth in the distribution of specialty products, including to health systems. As a reminder, prior year results included a $19 million benefit from held-for-sale accounting related to the sale of our Canada-based Rexall and Well.ca businesses. The prior year held-for-sale accounting benefit had an approximate 3% impact on year-over-year segment growth. Turning to the oncology and multi-specialty segment, We delivered another strong quarter, demonstrating the strength of our differentiated platform and the value we deliver …

… Recently, we released our Advancing Community Oncology Report, highlighting the central role of community practice in cancer care and the anticipated growth in precision medicine and innovative therapies. These insights underscore the strength of our platform and the opportunity to leverage our solutions to deepen provider and biopharma partnerships, to expand access to next-generation treatments, and to address barriers to care in the community setting. The report highlights our role in helping community providers navigate a dynamic policy environment. We have and we will continue to be actively engaged with lawmakers, patient coalitions, and provider organizations to advocate for changes that will expand patient access and support the growth of community practices. We firmly believe in the unique value of community-based care and the importance of advancing high-quality local cancer care in particular. In November, we hosted our inaugural McKesson Accelerate Conference, an annual event focused on the future of community oncology. With more than 1,500 industry leaders in attendance, the event brought together the people, the insights, and the innovations that will strengthen …

… disciplined and consistent strategy, deep customer relationships, and the scale and breadth of McKesson's portfolio. Before turning to our adjusted results, I want to begin with two brief updates, starting with the divestiture of our Norway operations. On January 30th, we completed the divestiture of our retail and distribution businesses in Norway, included in our other segments. This transaction marks the final step in our planned exit of Europe. In the third quarter, held for sale accounting from Norway contributed $0.05 to adjusted earnings per diluted share. For fiscal 2026, we now anticipate the Norwegian businesses to contribute approximately $1 billion of revenue and approximately $70 million of adjusted operating profit, which is inclusive of approximately $0.10 adjusted earnings per share accretion due to health of sale accounting. The completion of this transaction reflects disciplined execution, strategic clarity, and commitment to sustain long-term value creation for our shareholders. Additionally, during the third quarter, we recorded a gap-only pre-tax credit of $160 million, or $118 million after tax, within the North American pharmaceutical segment related to …

… impact. To achieve this goal, we continue to invest thoughtfully across the business, modernizing and expanding the services we provide to our biopharma partners and building next-generation patient access and affordability solutions. As an example, we're investing in capabilities to simplify the electronic patient enrollment process reducing time from days or weeks to sometimes just minutes, while reducing administrative errors and improving accuracy. Today, we're digitizing enrollment for more than 1,600 specialty medications, creating an opportunity to apply our experience in improving access to retail medications and helping stakeholders navigate through the complex enrollment process for specialty medications. Our evolving suite of solutions will accelerate the patient authorization workflow speed up the process for patients to access medications, introduce transparency with real-time prescription benefit check, and improve affordability with automated searches for financial assistance programs. We're also focused on opportunities that improve our own workflow efficiency. By applying technology automation and enhancing training to streamline our operations and …