MCK · 10-Q · 2026Q2 · Full report

Income Tax Rate Changes

MCKESSON CORP · 2026-08-05 · Importance 35 · Surprise 48 · Matches filing data

Income tax expense increased to $276 million from $220 million for the three months ended June 30, 2026. The reported income tax rate increased to 21.1% from 20.9%, a 20-basis-point increase. The rate change was driven by shifts in the mix of earnings among taxing jurisdictions and discrete tax items recognized during the quarters. Higher income tax payments also reduced operating cash flow by $701 million compared with the prior-year period.

Key facts

• As of June 30, 2026 the Company had $1.6 billion of unrecognized tax benefits, of which $1.5 billion would reduce income tax expense and the effective tax rate if recognized source
• The reported income tax rate for the three months ended June 30, 2026 was 21.1% and for the three months ended June 30, 2025 was 20.9% source
• Income tax expense for the three months ended June 30, 2026: $276 million; for the three months ended June 30, 2025: $220 million; reported income tax rates were 21.1% and 20.9%, respectively. source
• McKesson may remit foreign earnings to the U.S. to the extent it is tax efficient and does not anticipate the tax impact from remitting these earnings to be material. source

Impact estimates