MCK · 10-Q · 2026Q2 · Full report

FX / Currency Impact

MCKESSON CORP · 2026-08-05 · Importance 68 · Surprise 58 · In source text

McKesson operates in U.S. dollars and the functional currencies of foreign subsidiaries, including Canadian dollars, euros, and British pounds sterling, creating translation and intercompany-loan exposure. In July 2026, the company terminated C$6.5 billion of Canadian-dollar net-investment hedges and entered into C$7.5 billion of replacement cross-currency swaps maturing from July 2027 through July 2030. The company also replaced euro cross-currency swaps that matured in July 2026 with similar instruments maturing in October 2026 to mitigate currency fluctuations on foreign-currency notes.

Key facts

• During July 2026 the Company terminated C$6.5 billion of cross-currency swaps designated as net investment hedges and entered into cross-currency swaps with a total notional amount of C$7.5 billion maturing in July 2027 through July 2030 source
• Notional amount of cross-currency swaps designated as net investment hedges at June 30, 2026: C$6,500 million (maturities Dec-26 to Mar-27) source
• As of June 30, 2026 the Company had C$6.5 billion of cross-currency swaps designated as net investment hedges outstanding source
• McKesson's cash and cash equivalents balance as of June 30, 2026 and March 31, 2026 each included approximately $1.8 billion of cash held by subsidiaries outside of the U.S. source
• The Company considers fair values of interest rate swaps, cross-currency swaps, and foreign currency forward contracts to be Level 2 inputs under fair value guidance. source

Impact estimates