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Key Takeaways CVS Health's Aetna turnaround gained traction as first-half adjusted operating income rose more than $2B. CVS Health raised 2026 Health Care Benefits adjusted operating income guidance to $5.03-$5.37B. Claims Assist Manager and Clinical Collaboration are helping CVS improve claims and provider coordination. CVS Health (CVS - Free Report) is executing a multi-year plan to restore Aetna, its insurance business, to target margins. The strategy focuses on disciplined pricing, better medical cost management, clinical programs and operational improvements. The benefits became more visible in the first half of 2026. Health Care Benefits adjusted operating income increased more than $2 billion year over year. In the second quarter, the medical benefit ratio (MBR) improved to 87.4% from 89.9% a year earlier. 

The company raised its 2026 Health Care Benefits adjusted operating income outlook to $5.03-$5.37 billion. This is more than $1 billion above its previous guidance. The company now expects a full-year MBR of about 89.75%, within a range of 89.5-90.0%. Aetna’s profitability is expected to improve further over the next couple of years as the business moves toward its target margins.

Operational initiatives are also supporting the recovery. Aetna’s Claims Assist Manager is designed to reduce processing time for complex manually reviewed claims by more than 20%. CVS is also expanding its Aetna Clinical Collaboration program to improve coordination with healthcare providers. These efforts should help CVS rebuild Aetna’s profitability while strengthening member and provider engagement.

Peer UpdateMcKesson (MCK - Free Report) continues to expand its community-based specialty platform through the U.S. Oncology Network and related assets. In first-quarter fiscal 2027, Oncology & Multispecialty revenues increased 33% and adjusted operating profit rose 41%. Prescription Technology Solutions continues to benefit from demand for access and affordability programs across therapeutic categories. McKesson also began supporting the CMS Medicare GLP-1 Bridge program, where 95% of submitted prior authorization requests receive a determination within 30 minutes. 

Align Technology (ALGN - Free Report) continues to broaden the clinical reach of the Invisalign portfolio beyond traditional adult and teen alignment. The Invisalign Palatal Expander, Invisalign First and Invisalign with Mandibular Advancement featuring Occlusal Blocks expand treatment options for growing patients and more complex cases. In the second quarter, teen and growing-patient treatment starts increased 7.2% year over year to 240,000 cases. 

Align is also extending the portfolio through DSP touch-up cases, patient-specific financing options and products with fewer or no additional aligners.

CVS’ Price Performance, Valuation and EstimatesOver the past three months, CVS Health shares have risen 0.8% compared with the industry’s 11.9% growth. 

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CVS shares are trading at a forward five-year price-to-sales ratio of 0.29, lower than the industry average of 0.50. The stock has a Value Score of A.

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The consensus estimate for the company’s 2026 earnings has been showing a bullish trend. 

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CVS currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Key Takeaways CVS Health generated about $10.6B in YTD operating cash flow and ended Q2 with roughly $2.7B in cash. CVS expects leverage to improve from about 3.5x as it executes its 2026 outlook and reduces leverage. CVS assumes no 2026 buybacks and limited 2027 repurchases, keeping balance-sheet improvement a priority. CVS Health (CVS - Free Report) maintained a strong balance sheet throughout the first half of 2026, supported by robust cash generation and disciplined capital deployment.

The company has generated approximately $10.6 billion in operating cash flow year to date, reflecting strong earnings and improvements in working capital. It ended the second quarter with roughly $2.7 billion of cash at the parent company and unrestricted subsidiaries. The company reported a leverage ratio of approximately 3.5 times in the second quarter and expects the ratio to improve further as it executes against its 2026 outlook. CVS raised its full-year operating cash flow outlook to at least $11.5 billion, providing additional capacity to reduce leverage and strengthen financial flexibility. 

CVS also remains committed to shareholder returns, having distributed more than $1.7 billion through dividends year to date. However, the company is maintaining a cautious approach toward share repurchases. Its current 2026 outlook assumes no share buybacks, with additional capital deployment opportunities to be evaluated as leverage improves.

This trend extends into 2027, with repurchases assumed to be limited to offsetting share dilution rather than supporting incremental buybacks. This suggests that balance-sheet improvement remains a near-term capital allocation priority.

Peer UpdateWith no debt on Align Technology’s (ALGN - Free Report) balance sheet, it looks quite comfortable from the liquidity point of view. The company’s cash and cash equivalents totaled $1.10 billion at the end of second-quarter 2026. Second-quarter operating cash flow totaled $192.8 million, while free cash flow was $157.1 million after $35.7 million of capital expenditures. ALGN repurchased about 393,400 shares for $67 million during the quarter at an average price of $169.45. As of June 30, $733.3 million remained under the $1 billion authorization announced in April 2025.

Cardinal Health (CAH - Free Report) ended fiscal 2026 with $4.9 billion of cash and $5.0 billion of adjusted free cash flow. The company repurchased about $1.4 billion of shares during the year and received a $5.0 billion increase to its repurchase authorization. This liquidity supports ongoing investment, tuck-in acquisitions and shareholder returns while preserving financial flexibility.

CVS’ Price Performance, Valuation and EstimatesOver the past year, CVS Health shares have risen 31.1% compared with the industry’s 10.8% growth. 

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CVS shares are trading at a forward five-year price-to-sales ratio of 0.29, lower than the industry average of 0.50. The stock has a Value Score of A.

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The consensus estimate for the company’s 2026 earnings has been showing a bullish trend. 

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CVS currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Key Takeaways CVS Health's Pharmacy and Consumer Wellness revenues neared $34 billion in the second quarter.CVS Health's adjusted operating income rose more than 10%, driven by pharmacy strength and Rite Aid.CVS Health now expects at least $6.4 billion in full-year adjusted operating income. CVS Health (CVS - Free Report) is building strong momentum in its Pharmacy and Consumer Wellness segment. The segment’s broad footprint, as of June 30, 2026, includes nearly 9,000 retail locations, online retail pharmacy websites, retail specialty pharmacy stores, compounding pharmacies and branches for infusion and enteral nutrition services.

In the second quarter, Pharmacy and Consumer Wellness generated revenues of nearly $34 billion, a modest increase from the prior-year quarter, primarily driven by pharmacy drug mix, increased prescription volume and brand inflation. Following the completion of the acquisition of select Rite Aid assets nationwide last year, CVS acquired the prescription files of 626 former Rite Aid and Bartell Drugs pharmacies across 15 states. As a result of the transactions, CVS Pharmacy now serves more than nine million former Rite Aid and Bartell Drugs patients. The incremental prescription volume has provided another tailwind for the segment.

On a same-store basis, total revenues increased slightly in the quarter, and same-store pharmacy sales grew approximately 3%. Same-store front store sales rose 100 basis points compared with the prior-year quarter. However, these gains were affected by regulatory-related reductions in select drug prices and the impact of recent generic drug introductions, while pharmacy reimbursement pressure continued to remain another headwind. 

The segment’s profitability also improved alongside revenues. Adjusted operating income came in at nearly $1.5 billion, up more than 10% from the prior year, driven mainly by strength in the pharmacy business and contributions from the Rite Aid transaction. This was again moderated by continued business investments and the impact of consumer dynamics.

CVS is carrying the strength of its strong pharmacy performance through the rest of the year. Management now expects the segment's adjusted operating income of at least $6.4 billion for the full year, up $220 million from the prior guidance, reflecting stronger quarterly results and continued confidence in pharmacy performance.

CVS Health’s Peer UpdatesDaVita (DVA - Free Report) announced a new value-based care agreement to deliver comprehensive, coordinated care to Humana Medicare Advantage members with chronic kidney disease (CKD) stages 3B–5. The partnership, launched on July 1, builds on the organizations’ long-standing collaboration in end-stage kidney disease and expands earlier into the disease journey when intervention can have the greatest impact. In the second quarter, DaVita reported $3.55 billion in revenues, up 5.2% year over year, while adjusted earnings per share (EPS) from continuing operations were $4.02, up 36.3% from the prior-year quarter.

Cardinal Health (CAH - Free Report) is expanding its at-Home Solutions' growth strategy with two definitive agreements. The company is set to acquire Diabetes Health business of AdaptHealth Corp. and Strive Medical, a multi-specialty supply provider with a focus on urology. The transactions have a combined value of roughly $360 million in cash, subject to working capital adjustments. Both agreements enhance the framework established by Cardinal Health's most recent acquisition of Advanced Diabetes Supply.

CVS’ Price Performance, Valuation and EstimatesOver the past year, CVS Health shares have risen 31.1% compared with the industry’s 13.4% growth. 

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CVS shares are trading at a forward five-year price-to-sales ratio of 0.28, lower than the 0.54 industry average. 

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The consensus estimate for the company’s 2026 and 2027 earnings has been showing a bullish trend. 

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CVS currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Key Takeaways CVS Health's Q2 EPS rose more than 40%, driven mainly by improved Health Care Benefits profitability.CVS' Health Care Benefits AOI improved by more than $2 billion year over year so far in 2026.CVS now expects 2026 Health Care Benefits AOI of $5.03B-$5.37B, over $1B above prior guidance. In the second quarter of 2026, CVS Health (CVS - Free Report) delivered adjusted earnings per share (EPS) of $2.58, up more than 40% from the prior-year quarter. The strong earnings growth was mainly driven by improved adjusted operating income in the Health Care Benefits segment.

The division generated more than $37 billion in revenues, rising more than 3% year over year, as growth in the government business more than offset some of the impact of CVS’ planned exit from the Individual Exchange business in 2026. Medical membership was approximately 26 million at quarter end, flat sequentially but down roughly 700,000 from the prior-year quarter. The decline mainly reflected CVS’ Individual Exchange exit, partly offset by gains in commercial fee-based membership.

Adjusted operating income (AOI) came in at approximately $2.4 billion, while the medical benefit ratio (MBR) was 87.4%. Both improved meaningfully from the prior-year quarter as CVS continued executing its margin recovery plan.

CVS Health is beginning to see the results of actions taken at Aetna over the past two years. The company has strengthened its clinical programs, improved operations and maintained a disciplined approach to cost management and pricing. Those efforts have helped drive more than $2 billion in year-over-year AOI improvement so far this year.

The quarter’s results also included the impact of changes in the Individual Exchange risk adjustment position for the 2025 plan year and favorable prior-year development. These items contributed approximately 140 basis points to the MBR. Even excluding these items, CVS Health’s core performance came in ahead of expectations, driven largely by Medicare, owing to strong medical cost management and disciplined pricing. Medicaid and Commercial businesses performed in line with expectations.

Management now expects Health Care Benefits AOI of $5.03 billion to $5.37 billion for 2026, more than $1 billion above its previous guidance.

Key Developments Among CVS Health’s PeersThe Cigna Group (CI - Free Report) delivered total revenues of $71.7 billion and adjusted EPS of $7.78 in the second quarter of 2026, up 7% and 8.1%, respectively. Specialty and Care Services benefited from secular tailwinds, along with strength at Accredo and its broader specialty pharmacy services. Cigna Healthcare also delivered results ahead of expectations, supported by customer growth in the U.S. employer business, disciplined pricing and execution, including in the stop-loss business.

Walmart (WMT - Free Report) completed the acquisition of Vibe.co, a leading self-service streaming TV advertising platform, earlier this month. The addition will help the company’s U.S. commerce media business, Walmart Connect, bring to market new and distinct ways for advertisers to plan, buy and measure streaming TV advertising. 

CVS’ Price Performance, Valuation and EstimatesOver the past year, CVS Health shares have risen 38.4% compared with the industry’s 12.2% growth. 

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In terms of valuation, CVS shares are trading at a forward sales multiple of 0.29 over the past five years compared with its 0.52 industry average. 

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Here’s how estimates for the company’s earnings have been shaping up.  

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CVS currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Key Takeaways CVS is building Health100 and Haio to simplify health care and improve consumer engagement.Technology has helped CVS approve over 95% of eligible prior authorizations within 24 hours.CVS' AI claims tool aims to cut processing time by more than 20% on hundreds of millions of claims. CVS Health (CVS - Free Report) sees its technology investments as an inflection point as it works to become a more consumer-based health care technology company. Last year, the company committed to invest $20 billion over the next decade in emerging technologies to simplify the health care experience and improve customer engagement. The investment includes developing an open platform that can provide seamless access to payers, providers, pharmacy benefit managers (PBMs), pharmacies and digital health tools.

CVS recently began the targeted launch of its Health100 platform, including Haio, an artificial intelligence (AI)-powered assistant designed to simplify the consumer experience and help people better engage in their care journey. The company expects to expand access later this year following encouraging early feedback.

CVS is also using technology to simplify the health care experience for providers, focusing on some of the highest priorities, such as prior authorizations, claims processing and access to real-time patient information. Aetna has the fewest medical services subject to prior authorization in the industry. CVS’ focus on embedding technology within each of its businesses has enabled it to approve more than 95% of the eligible prior authorizations within 24 hours, with more than 80% being approved in real time.

The company also launched an AI-enabled claims assist manager, which is expected to reduce processing time by more than 20% and accelerate payments for providers on hundreds of millions of claims annually. CVS is also scaling its Aetna clinical collaboration program, which brings Aetna nurses together with hospital staff to support Medicare Advantage members during care transitions.

Technology infrastructure changes are helping modernize platforms and accelerate data sharing and connectivity with providers and payer partners. CVS Specialty’s focus on technology, automation and AI has helped it maintain adherence above 90% compared with the 80% industry standard.

Updates From CVS Health’s PeersCardinal Health (CAH - Free Report) generated $63.7 billion in fiscal fourth-quarter 2026 revenues, up 6% year over year. Growth was led by strong demand in the company’s Pharmaceutical and Specialty Solutions segment with contributions from three growth businesses within Other - at-Home Solutions, Nuclear and Precision Health Solutions and OptiFreight Logistics. Adjusted earnings per share (EPS) increased 40% to $2.91, reflecting the jump in non-GAAP earnings, including the recognition of a one-time net operating profit impact of International Emergency Economic Powers Act tariff refunds of $100 million in CAH’s Global Medical Products and Distribution segment, a lower effective tax rate and a lower share count.

UnitedHealth Group’s (UNH - Free Report) second-quarter 2026 revenues of $112 billion were largely consistent with the prior year. Operating earnings of $8 billion grew 55% year over year, reflecting product and portfolio actions taken over the past 12 months, along with targeted management disciplines. UNH attributed the lower-than-expected medical cost trends in Medicare so far this year largely to its initiatives, including benefit design, care management models and network curation.

CVS’ Price Performance, Valuation and EstimatesYear to date, CVS Health shares have risen 19.6% compared with the industry’s 1.2% growth. 

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CVS shares are trading at a forward five-year price-to-sales ratio of 0.29, lower than the 0.52 industry average. The stock has a Value Score of A.

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The consensus estimate for the company’s 2026 and 2027 earnings has been showing a bullish trend. 

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CVS currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

CVS Health Wednesday, Aug. 5, 2026 reported second quarter net income nearly tripled to $2.9 billion compared to the year-ago quarter as the company gets a better handle on rising costs in its Aetna health plans. In this photo is a monitor displays signage for CVS Health Corp. on the floor of the New York Stock Exchange (NYSE) in New York, U.S., on Friday, Oct. 27, 2017. Photographer: Michael Nagle/Bloomberg

© 2017 Bloomberg Finance LP

CVS Health Wednesday reported second quarter net income nearly tripled to $2.9 billion compared to the year-ago quarter as the company gets a better handle on rising costs in its Aetna health plans.

CVS, which owns the nation’s third-largest health insurance company in Aetna, said the company’s medical benefits ratio, which is the percentage of health plan premium spent on medical care, decreased to 87.4% compared to 89.9% in the year-ago period.

The financial performance convinced CVS executives to raise its diluted earnings per share guidance range to “$6.84 to $7.04 from $6.24 to $6.44” for the full year 2026, the company said. It’s the second consecutive quarter CVS has made such a move as chief executive officer David Joyner continues to turn the diversified healthcare giant around since he was promoted into the top job nearly two years ago.

“As our businesses work together to deliver a technology-powered care engagement experience, we continue to deliver strong performance,” Joyner said in a statement accompanying the quarterly earnings report. “We uniquely enable what our customers want the most: simple, connected and convenient access to affordable, quality healthcare, where, when, and how they want it.”

CVS said the drop in the medical benefits ratio, was “primarily driven by improved underlying performance in the government business and the absence of the premium deficiency reserve recorded in the prior year.”

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Like other health insurers, CVS’ Aetna unit has been battling the rising medical expenses of its health plan members, particular among older adults covered by the company’s Medicare Advantage plans. In the third quarter of 2024, just before Joyner took over as CEO, the company’s medical benefit ratio was more than 95% largely driven by costs of enrollees in Medicare Advantage plans. Such plans contract with the federal government to provide health benefits available in traditional Medicare plus extra benefits and services to seniors including drug coverage, wellness programs and other coverage.

The industry and its analysts would prefer medical benefit ratios to be below 90% and into the mid 80s, where the industry was more than two years ago. Thus, CVS appears to have arrived as the company’s medical membership as of June 30, 2026 sat at 26 million health plan members and “remained consistent compared with March 31, 2026,” the company said.

Despite CVS’ decision last year to exit the individual health insurance business under the Affordable Care Act, also known as Obamacare, the company still grew its health care benefits segment. Total revenues in the company’s health care benefits segment grew 3.5% to $37.5 billion “driven by an increase in the government business, partially offset by a decline as a result of the company’s exit of the individual exchange business in 2026.”

The improvement helped CVS net income jump to $2.98 billion, or $2.31 per share, compared to $1.02 billion, or 80 cents per share, in the year-ago quarter. Meanwhile, second quarter total revenue grew more than 7% total revenues to $106 billion “driven by revenue growth across all operating segments.”

CVS also owns the nation’s largest drugstore chain with about 9,000 pharmacies and nearly 1,000 retail clinics and one of the nation’s largest pharmacy benefit management companies.

In the company’s health services segment, which includes the Caremark pharmacy benefit management company, total revenues increased 11.5% to $51.8 billion in the second quarter compared to the year-ago period “primarily driven by pharmacy drug mix and brand inflation, partially offset by continued pharmacy client price improvements.”

And in the company’s pharmacy and consumer wellness segment,” CVS said total revenues “increased slightly” for the second quarter to $33.8 billion “primarily driven by pharmacy drug mix, increased prescription volume, including contributions from the company’s Rite Aid asset acquisitions which were completed during the third quarter of 2025, and brand inflation.”

“These increases were largely offset by regulatory-related price reductions on certain drugs, the impact of recent generic drug introductions and pharmacy reimbursement pressure,” CVS said in its earnings report.

Second quarter total revenues increased to $106.1 billion, up 7.3% year-over-year Second quarter GAAP diluted EPS of $2.31 and Adjusted EPS of $2.58 Generated year-to-date cash flow from operations of $10.6 billion Raising full-year 2026 guidance: GAAP diluted EPS guidance range to $6.84 to $7.04 from $6.24 to $6.44 Adjusted EPS guidance range to $7.90 to $8.10 from $7.30 to $7.50 Cash flow from operations guidance to at least $11.5 billion from at least $9.5 billion , /PRNewswire/ -- CVS Health Corporation (NYSE: CVS) today announced operating results for the three months ended June 30, 2026.

CVS Health logo (PRNewsFoto/CVS Health) "Our CVS Health colleagues build trust every day in communities across our country by making healthcare easier for millions of customers, patients and members. As our businesses work together to deliver a technology-powered care engagement experience, we continue to deliver strong performance. We uniquely enable what our customers want the most: simple, connected and convenient access to affordable, quality healthcare, where, when, and how they want it."                                                                                              

 - David Joyner, CVS Health Chairman and CEO

Three Months Ended

June 30,

Year Ending

December 31,

In billions, except per share amounts

2026

2025

2026 Projected

Total revenues 

$     106.1

$      98.9

At least $414.0

Diluted earnings per share

$      2.31

$      0.80

$6.84-$7.04

Adjusted EPS (2)

$      2.58

$      1.81

$7.90-$8.10

Second quarter GAAP diluted EPS of $2.31 increased from $0.80 in the prior year. Adjusted EPS of $2.58 increased from $1.81 in the prior year, primarily due to improved adjusted operating income in the Health Care Benefits segment, reflecting continued execution on the Health Care Benefits segment margin recovery plan.

The Company is increasing its full-year 2026 GAAP diluted EPS, Adjusted EPS and cash flow from operations guidance to reflect increases in the Health Care Benefits and Pharmacy & Consumer Wellness segments, while maintaining a cautious view for the remainder of the year in light of continued elevated cost trends and the potential for macro headwinds.

Consolidated second quarter results

Three Months Ended

June 30,

Six Months Ended

June 30,

In millions, except per share amounts

2026

2025

Change

2026

2025

Change

Total revenues 

$ 106,096

$   98,915

$    7,181

$ 206,522

$ 193,503

$   13,019

Operating income

4,703

2,381

2,322

9,383

5,755

3,628

Adjusted operating income (1)

5,157

3,808

1,349

10,307

8,387

1,920

Net income

2,995

1,013

1,982

5,952

2,795

3,157

Diluted earnings per share

$      2.31

$      0.80

$      1.51

$      4.61

$      2.21

$       2.40

Adjusted EPS (2)

$      2.58

$      1.81

$      0.77

$      5.16

$      4.06

$       1.10

For the three months ended June 30, 2026 compared to the prior year:

Total revenues increased 7.3% driven by revenue growth across all operating segments. Operating income increased 97.5% primarily due to the increase in adjusted operating income described below and the absence of $833 million in legacy litigation charges recorded in the prior year. Adjusted operating income increased 35.4% driven by increases across all operating segments. See pages 3 through 5 for additional discussion of the adjusted operating income performance of the Company's segments. Operational Updates

CVS Health launched a comprehensive approach to GLP-1 support across its CVS Pharmacy® and MinuteClinic® locations. New offerings include expanded pharmacy support designed to help patients access these treatments and stay on them, and a new $29 MinuteClinic virtual visit that connects eligible adults with licensed clinicians who can evaluate and, where clinically appropriate, prescribe GLP-1 therapy. In addition, CVS Pharmacy participates in the Centers for Medicare & Medicaid Services Medicare GLP-1 Bridge program, which runs through December 31, 2027. Eligible Medicare beneficiaries can access certain GLP-1 medications for $50 per month, offering more predictable and affordable pricing for patients who qualify. CVS Caremark updated its most common commercial formularies, expanding GLP-1 options for members, building on its industry-leading efforts to help patients get FDA-approved weight management medications at an affordable cost. CVS Health is deploying agentic AI to simplify and streamline call center interactions for members and providers engaging with Aetna® and CVS Caremark® businesses on a secure call center platform. Aetna launched its second generation Aetna Claims Assist Manager ("CAM"), an AI-powered agentic claims advisor platform designed to streamline claims processing and improve payment accuracy. CAM reduces processing time by over 20% for complex claims that require manual review, helping providers get paid faster and more consistently. Health Care Benefits segment

The Health Care Benefits segment offers a full range of insured and self-insured ("ASC") medical, pharmacy, dental and behavioral health products and services. The segment results for the three and six months ended June 30, 2026 and 2025 were as follows:

Three Months Ended

June 30,

Six Months Ended

June 30,

In millions, except percentages

2026

2025

Change

2026

2025

Change

Total revenues

$ 37,538

$ 36,258

$   1,280

$ 73,509

$ 71,068

$   2,441

Adjusted operating income (1)

2,426

1,308

1,118

5,467

3,301

2,166

Medical benefit ratio ("MBR") (3)

87.4 %

89.9 %

(2.5) %

86.0 %

88.6 %

(2.6) %

Medical membership (4)

26.0

26.7

(0.7)

Total revenues increased 3.5% for the three months ended June 30, 2026 compared to the prior year primarily driven by an increase in the Government business, partially offset by a decline as a result of the Company's exit of the individual exchange business in 2026. Adjusted operating income increased 85.5% for the three months ended June 30, 2026 compared to the prior year primarily driven by improved underlying performance in the Government business and the absence of a $471 million premium deficiency reserve recorded within the Group Medicare Advantage product line in the prior year. The MBR decreased to 87.4% in the three months ended June 30, 2026 compared to 89.9% in the prior year primarily driven by improved underlying performance in the Government business and the absence of the premium deficiency reserve recorded in the prior year. Medical membership as of June 30, 2026 of 26.0 million remained consistent compared with March 31, 2026. Prior years' health care costs payable estimates developed favorably by $1.2 billion during the six months ended June 30, 2026. Days claims payable were 41.7 days as of June 30, 2026, a decrease of 1.2 days compared to March 31, 2026. Health Services segment

The Health Services segment provides a full range of pharmacy benefit management solutions, delivers health care services in its medical clinics, virtually, and in the home, and offers provider enablement solutions. The segment results for the three and six months ended June 30, 2026 and 2025 were as follows:

Three Months Ended

June 30,

Six Months Ended

June 30,

In millions

2026

2025

Change

2026

2025

Change

Total revenues

$  51,795

$  46,453

$   5,342

$ 100,032

$  89,915

$  10,117

Adjusted operating income (1)

1,733

1,575

158

3,222

3,178

44

Pharmacy claims processed (5) (6)

473.0

469.0

4.0

937.7

933.2

4.5

Total revenues increased 11.5% for the three months ended June 30, 2026 compared to the prior year primarily driven by pharmacy drug mix and brand inflation, partially offset by continued pharmacy client price improvements. Adjusted operating income increased 10.0% for the three months ended June 30, 2026 compared to the prior year primarily driven by improved purchasing economics, pharmacy drug mix and modest improvement in the Company's health care delivery business. These increases were partially offset by continued pharmacy client price improvements. Pharmacy claims processed remained consistent on a 30-day equivalent basis for the three months ended June 30, 2026 compared to the prior year. Pharmacy & Consumer Wellness segment

The Pharmacy & Consumer Wellness segment dispenses prescriptions in its retail pharmacies and through its infusion operations, provides ancillary pharmacy services including pharmacy patient care programs and vaccination administration, and sells a wide assortment of health and wellness products and general merchandise. The segment also provides pharmacy fulfillment services to support the Health Services segment's specialty and mail order pharmacy offerings. The segment results for the three and six months ended June 30, 2026 and 2025 were as follows:

Three Months Ended

June 30,

Six Months Ended

June 30,

In millions

2026

2025

Change

2026

2025

Change

Total revenues

$  33,816

$  33,581

$      235

$  65,805

$  65,493

$      312

Adjusted operating income (1)

1,475

1,338

137

2,672

2,651

21

Prescriptions filled (5) (6)

457.0

438.1

18.9

908.2

873.6

34.6

Total revenues increased slightly for the three months ended June 30, 2026 compared to the prior year primarily driven by pharmacy drug mix, increased prescription volume, including contributions from the Company's Rite Aid asset acquisitions which were completed during the third quarter of 2025, and brand inflation. These increases were largely offset by regulatory-related price reductions on certain drugs, the impact of recent generic drug introductions and pharmacy reimbursement pressure. Adjusted operating income increased 10.2% for the three months ended June 30, 2026 compared to the prior year primarily driven by core pharmacy strength and contributions from the Company's Rite Aid asset acquisitions. These increases were partially offset by continued business investments and the impact of consumer dynamics. Prescriptions filled increased 4.3% on a 30-day equivalent basis for the three months ended June 30, 2026 compared to the prior year primarily driven by incremental volume resulting from the Company's Rite Aid prescription file acquisitions and increased utilization, partially offset by the absence of long-term care pharmacy prescription volume following the deconsolidation of Omnicare, LLC in September 2025. About CVS Health

CVS Health is a leading health solutions company simplifying health care one person, one family and one community at a time. As of June 30, 2026, the Company had approximately 9,000 retail pharmacy locations, more than 1,000 walk-in and primary care medical clinics and a leading pharmacy benefits manager with approximately 87 million plan members. The Company also serves an estimated 37 million people through a broad range of health insurance products and related services. The Company's integrated model uses personalized, technology driven services to connect people to simply better health, increasing access to quality care, delivering better outcomes, and lowering overall costs.

Teleconference and Webcast

The Company will be holding a conference call today for investors at 8:00 a.m. (Eastern Time) to discuss its second quarter results. An audio webcast of the call will be broadcast simultaneously for all interested parties through the Investor Relations section of the CVS Health website at http://investors.cvshealth.com. This webcast will be archived and available on the website for a one-year period following the conference call.

Non-GAAP Financial Information

The Company presents both GAAP and non-GAAP financial measures in this press release to assist in the comparison of the Company's past financial performance with its current financial performance. See "Non-GAAP Financial Information" beginning on page 10 and endnotes beginning on page 20 for explanations of non-GAAP financial measures presented in this press release. See pages 12 through 14 and page 19 for reconciliations of each non-GAAP financial measure used in this release to the most directly comparable GAAP financial measure.

Cautionary Statement Concerning Forward-looking Statements

The Private Securities Litigation Reform Act of 1995 provides a safe harbor for forward-looking statements made by or on behalf of CVS Health Corporation. Statements in this press release that are forward-looking include, but are not limited to, the full-year 2026 guidance information, Mr. Joyner's quotation and the information included in the reconciliations and endnotes. By their nature, all forward-looking statements are not guarantees of future performance or results and are subject to risks and uncertainties that are difficult to predict and/or quantify. Actual results may differ materially from those contemplated by the forward-looking statements due to the risks and uncertainties described in our Securities and Exchange Commission ("SEC") filings, including those set forth in the Risk Factors section and under the heading "Cautionary Statement Concerning Forward-Looking Statements" in our most recently filed Annual Report on Form 10-K, our Quarterly Reports on Form 10-Q for the quarterly periods ended March 31, 2026 and June 30, 2026 and our Current Reports on Form 8-K.

You are cautioned not to place undue reliance on CVS Health's forward-looking statements. CVS Health's forward-looking statements are and will be based upon management's then-current views and assumptions regarding future events and operating performance, and are applicable only as of the dates of such statements. CVS Health does not assume any duty to update or revise forward-looking statements, whether as a result of new information, future events, uncertainties or otherwise.

- Tables Follow -

CVS HEALTH CORPORATION

Condensed Consolidated Statements of Operations

(Unaudited)

Three Months Ended

June 30,

Six Months Ended

June 30,

In millions, except per share amounts

2026

2025

2026

2025

Revenues:

Products

$     66,219

$     60,607

$   128,445

$   118,276

Premiums

35,117

34,195

68,908

67,015

Services

4,119

3,626

7,954

7,205

Net investment income

641

487

1,215

1,007

Total revenues

106,096

98,915

206,522

193,503

Operating costs:

Cost of products sold

58,862

54,005

114,306

105,062

Health care costs

31,485

31,317

60,843

60,452

Operating expenses

11,046

11,212

21,990

22,234

Total operating costs

101,393

96,534

197,139

187,748

Operating income

4,703

2,381

9,383

5,755

Interest expense

(757)

(763)

(1,531)

(1,548)

Other income

31

29

63

57

Income before income tax provision

3,977

1,647

7,915

4,264

Income tax provision

982

634

1,963

1,469

Net income

2,995

1,013

5,952

2,795

Net (income) loss attributable to noncontrolling interests

(16)

8

(30)

5

Net income attributable to CVS Health

$      2,979

$      1,021

$      5,922

$      2,800

Net income per share attributable to CVS Health:

Basic

$        2.33

$        0.81

$        4.64

$        2.22

Diluted

$        2.31

$        0.80

$        4.61

$        2.21

Weighted average shares outstanding:

Basic

1,279

1,266

1,276

1,264

Diluted

1,287

1,270

1,283

1,267

CVS HEALTH CORPORATION

Condensed Consolidated Balance Sheets

(Unaudited)

In millions

June 30,
2026

December 31,
2025

Assets:

Cash and cash equivalents

$         11,329

$           8,453

Investments

2,629

2,145

Accounts receivable, net

40,309

39,779

Inventories

17,622

19,246

Other current assets

3,457

5,091

  Total current assets

75,346

74,714

Long-term investments

33,247

32,669

Property and equipment, net

13,168

13,083

Operating lease right-of-use assets

14,451

14,973

Goodwill

85,478

85,478

Intangible assets, net

24,644

25,508

Other assets

7,434

7,113

Total assets

$       253,768

$       253,538

Liabilities:

Accounts payable

$         17,167

$         17,641

Pharmacy claims and discounts payable

26,203

26,344

Health care costs payable

16,313

15,399

Accrued expenses and other current liabilities

22,477

22,387

Other insurance liabilities

1,009

1,116

Current portion of operating lease liabilities

1,914

1,737

Current portion of long-term debt

1,958

4,068

  Total current liabilities

87,041

88,692

Long-term operating lease liabilities

12,982

13,643

Long-term debt

59,452

60,502

Deferred income taxes

3,766

3,832

Other long-term insurance liabilities

4,516

4,716

Other long-term liabilities

6,112

6,771

Total liabilities

173,869

178,156

Shareholders' equity:

Preferred stock

—

—

Common stock and capital surplus

50,968

50,402

Treasury stock

(36,852)

(36,790)

Retained earnings

65,398

61,196

Accumulated other comprehensive income

188

406

  Total CVS Health shareholders' equity

79,702

75,214

Noncontrolling interests

197

168

Total shareholders' equity

79,899

75,382

Total liabilities and shareholders' equity

$       253,768

$       253,538

CVS HEALTH CORPORATION

Condensed Consolidated Statements of Cash Flows

(Unaudited)

Six Months Ended

June 30,

In millions

2026

2025

Cash flows from operating activities:

Reconciliation of net income to net cash provided by operating activities:

Net income

$        5,952

$        2,795

Adjustments required to reconcile net income to net cash provided by operating
activities:

   Depreciation and amortization

2,241

2,325

   Stock-based compensation

442

262

   Loss on sale of subsidiary

—

236

   Deferred income taxes and other items

(241)

(283)

   Change in operating assets and liabilities

2,200

1,118

Net cash provided by operating activities

10,594

6,453

Cash flows from investing activities:

Proceeds from sales and maturities of investments

7,483

6,866

Purchases of investments

(8,704)

(7,186)

Purchases of property and equipment

(1,540)

(1,350)

Acquisitions

(9)

(139)

Other

12

23

Net cash used in investing activities

(2,758)

(1,786)

Cash flows from financing activities:

Commercial paper borrowings (repayments), net

—

921

Repayments of long-term debt

(3,287)

(762)

Dividends paid

(1,725)

(1,706)

Proceeds from exercise of stock options

217

191

Payments for taxes related to net share settlement of equity awards

(154)

(125)

Other

(62)

(45)

Net cash used in financing activities

(5,011)

(1,526)

Net increase in cash, cash equivalents and restricted cash

2,825

3,141

Cash, cash equivalents and restricted cash at the beginning of the period

8,712

8,884

Cash, cash equivalents and restricted cash at the end of the period

$      11,537

$      12,025

Non-GAAP Financial Information

The Company uses non-GAAP financial measures to analyze underlying business performance and trends. The Company believes that providing these non-GAAP financial measures enhances the Company's and investors' ability to compare the Company's past financial performance with its current and expected future performance. These non-GAAP financial measures, which are included in this press release and which may be referred to on the conference call discussing the Company's second quarter financial results, are provided as supplemental information to the financial measures presented in this press release and discussed on the conference call that are calculated and presented in accordance with GAAP. Non-GAAP financial measures should not be considered a substitute for, or superior to, financial measures determined or calculated in accordance with GAAP. The Company's definitions of its non-GAAP financial measures may not be comparable to similarly titled measures reported by other companies.

Non-GAAP financial measures such as consolidated adjusted operating income, adjusted earnings per share ("EPS") and adjusted income attributable to CVS Health exclude from the relevant GAAP metrics, as applicable: amortization of intangible assets, net realized capital gains or losses and other items, if any, that neither relate to the ordinary course of the Company's business nor reflect the Company's underlying business performance.

For the periods covered in this press release, the following items are excluded from the non-GAAP financial measures described above, as applicable, because the Company believes they neither relate to the ordinary course of the Company's business nor reflect the Company's underlying business performance:

The Company's acquisition activities have resulted in the recognition of intangible assets as required under the acquisition method of accounting which consist primarily of trademarks, customer contracts/relationships, covenants not to compete, technology, provider networks and value of business acquired. Definite-lived intangible assets are amortized over their estimated useful lives and are tested for impairment when events indicate that the carrying value may not be recoverable. The amortization of intangible assets is reflected in operating expenses within each segment. Although intangible assets contribute to the Company's revenue generation, the amortization of intangible assets does not directly relate to the underwriting of the Company's insurance products, the services performed for the Company's customers or the sale of the Company's products or services. Additionally, intangible asset amortization expense typically fluctuates based on the size and timing of the Company's acquisition activity. Accordingly, the Company believes excluding the amortization of intangible assets enhances the Company's and investors' ability to compare the Company's past financial performance with its current performance and to analyze underlying business performance and trends. Intangible asset amortization excluded from the related non-GAAP financial measure represents the entire amount recorded within the Company's GAAP financial statements, and the revenue generated by the associated intangible assets has not been excluded from the related non-GAAP financial measure. Intangible asset amortization is excluded from the related non-GAAP financial measure because the amortization, unlike the related revenue, is not affected by operations of any particular period unless an intangible asset becomes impaired or the estimated useful life of an intangible asset is revised. The Company's net realized capital gains and losses arise from various types of transactions, primarily in the course of managing a portfolio of assets that support the payment of insurance liabilities. Net realized capital gains and losses are reflected in net investment income (loss) within each segment. These capital gains and losses are the result of investment decisions, market conditions and other economic developments that are unrelated to the performance of the Company's business, and the amount and timing of these capital gains and losses do not directly relate to the underwriting of the Company's insurance products, the services performed for the Company's customers or the sale of the Company's products or services. Accordingly, the Company believes excluding net realized capital gains and losses enhances the Company's and investors' ability to compare the Company's past financial performance with its current performance and to analyze underlying business performance and trends. During the three and six months ended June 30, 2026 and 2025, the acquisition-related integration costs relate to the acquisitions of Signify Health, Inc. and Oak Street Health, Inc. The acquisition-related integration costs are reflected in operating expenses within the Corporate/Other segment. During the three and six months ended June 30, 2025, the Company recorded legacy litigation charges related to two court decisions associated with its past business practices. The legacy litigation charges were reflected in operating expenses within the Pharmacy & Consumer Wellness and Health Services segments. During the three and six months ended June 30, 2025, the loss on the wind down and sale of Accountable Care assets represents the pre-tax loss on the divestiture of the Company's Medicare Shared Savings Program ("MSSP") operations, as well as costs incurred in connection with the wind down of the Company's ACO REACH operations. The loss on Accountable Care assets was reflected in operating expenses within the Health Services segment. During the three and six months ended June 30, 2025, the office real estate optimization charges primarily relate to the abandonment of leased real estate and the related right-of-use assets and property and equipment in connection with the Company's evaluation of corporate office real estate space. The office real estate optimization charges were reflected in operating expenses within each segment. The corresponding tax benefit or expense related to the items excluded from adjusted income attributable to CVS Health and Adjusted EPS above. The nature of each non-GAAP adjustment is evaluated to determine whether a discrete adjustment should be made to the adjusted income tax provision. See endnotes (1) and (2) on page 20 for definitions of non-GAAP financial measures. Reconciliations of each non-GAAP financial measure to the most directly comparable GAAP financial measure are presented on pages 12 through 14 and page 19.

Reconciliations of Non-GAAP Financial Measures to the Most Directly Comparable GAAP Financial
Measures
 

Adjusted Operating Income

(Unaudited)

The following are reconciliations of consolidated operating income (GAAP measure) to consolidated adjusted
operating income, as well as reconciliations of segment GAAP operating income (loss) to segment adjusted operating
income (loss):

Three Months Ended June 30, 2026

In millions

Health Care

Benefits

Health

Services

Pharmacy &

Consumer

Wellness

Corporate/

Other

Consolidated

Totals

Operating income (loss) (GAAP measure)

$         2,191

$      1,603

$           1,411

$         (502)

$           4,703

Amortization of intangible assets

237

130

64

—

431

Net realized capital (gains) losses

(2)

—

—

15

13

Acquisition-related integration costs

—

—

—

10

10

Adjusted operating income (loss) (1)

$         2,426

$      1,733

$           1,475

$         (477)

$           5,157

Three Months Ended June 30, 2025

In millions

Health Care

Benefits

Health

Services

Pharmacy &

Consumer

Wellness

Corporate/

Other

Consolidated

Totals

Operating income (loss) (GAAP measure)

$         1,002

$      1,102

$              736

$         (459)

$           2,381

Amortization of intangible assets

293

141

60

—

494

Net realized capital losses

13

—

—

14

27

Acquisition-related integration costs

—

—

—

28

28

Legacy litigation charges

—

291

542

—

833

Loss on Accountable Care assets

—

41

—

—

41

Office real estate optimization charges

—

—

—

4

4

Adjusted operating income (loss) (1)

$         1,308

$      1,575

$           1,338

$         (413)

$           3,808

Six Months Ended June 30, 2026

In millions

Health Care

Benefits

Health

Services

Pharmacy &

Consumer

Wellness

Corporate/

Other

Consolidated

Totals

Operating income (loss) (GAAP measure)

$         4,997

$      2,950

$           2,545

$      (1,109)

$           9,383

Amortization of intangible assets

473

272

127

1

873

Net realized capital (gains) losses

(3)

—

—

32

29

Acquisition-related integration costs

—

—

—

22

22

Adjusted operating income (loss) (1)

$         5,467

$      3,222

$           2,672

$      (1,054)

$         10,307

Six Months Ended June 30, 2025

In millions

Health Care

Benefits

Health

Services

Pharmacy &

Consumer

Wellness

Corporate/

Other

Consolidated

Totals

Operating income (loss) (GAAP measure)

$         2,676

$      2,329

$           1,600

$         (850)

$           5,755

Amortization of intangible assets

587

285

120

1

993

Net realized capital (gains) losses

34

(15)

—

29

48

Acquisition-related integration costs

—

—

—

73

73

Legacy litigation charges

—

291

929

—

1,220

Loss on Accountable Care assets

—

288

—

—

288

Office real estate optimization charges

4

—

2

4

10

Adjusted operating income (loss) (1)

$         3,301

$      3,178

$           2,651

$         (743)

$           8,387

 Adjusted Earnings Per Share
(Unaudited)

The following are reconciliations of net income attributable to CVS Health to adjusted income attributable to CVS
Health and calculations of GAAP diluted EPS and Adjusted EPS:

Three Months Ended

June 30, 2026

Three Months Ended

June 30, 2025

In millions, except per share amounts

Total
Company

Per
Common
Share

Total
Company

Per
Common
Share

Net income attributable to CVS Health (GAAP measure)

$     2,979

$      2.31

$     1,021

$      0.80

Amortization of intangible assets

431

0.33

494

0.39

Net realized capital losses

13

0.01

27

0.02

Acquisition-related integration costs

10

0.01

28

0.02

Legacy litigation charges

—

—

833

0.66

Loss on Accountable Care assets

—

—

41

0.03

Office real estate optimization charges

—

—

4

—

Tax impact of non-GAAP adjustments

(109)

(0.08)

(144)

(0.11)

Adjusted income attributable to CVS Health (2)

$     3,324

$      2.58

$     2,304

$      1.81

Weighted average diluted shares outstanding

1,287

1,270

Six Months Ended

June 30, 2026

Six Months Ended

June 30, 2025

In millions, except per share amounts

Total
Company

Per
Common
Share

Total
Company

Per
Common
Share

Net income attributable to CVS Health (GAAP measure)

$     5,922

$      4.61

$     2,800

$      2.21

Amortization of intangible assets

873

0.68

993

0.78

Net realized capital losses

29

0.02

48

0.04

Acquisition-related integration costs

22

0.02

73

0.06

Legacy litigation charges

—

—

1,220

0.96

Loss on Accountable Care assets

—

—

288

0.23

Office real estate optimization charges

—

—

10

0.01

Tax impact of non-GAAP adjustments

(230)

(0.17)

(284)

(0.23)

Adjusted income attributable to CVS Health (2)

$     6,616

$      5.16

$     5,148

$      4.06

Weighted average diluted shares outstanding

1,283

1,267

Supplemental Information
(Unaudited)

The following are reconciliations of financial measures of the Company's segments to the consolidated totals:

In millions

Health Care

Benefits

Health

Services

Pharmacy &

Consumer

Wellness

Corporate/

Other

Intersegment

Eliminations (a)

Consolidated

Totals

Three Months Ended

June 30, 2026

Total revenues

$    37,538

$  51,795

$        33,816

$       147

$      (17,200)

$    106,096

Adjusted operating
income (loss) (1)

2,426

1,733

1,475

(477)

—

5,157

June 30, 2025

Total revenues

$    36,258

$  46,453

$        33,581

$        96

$      (17,473)

$     98,915

Adjusted operating
income (loss) (1)

1,308

1,575

1,338

(413)

—

3,808

Six Months Ended

June 30, 2026

Total revenues

$    73,509

$ 100,032

$        65,805

$       273

$      (33,097)

$    206,522

Adjusted operating
income (loss) (1)

5,467

3,222

2,672

(1,054)

—

10,307

June 30, 2025

Total revenues

$    71,068

$  89,915

$        65,493

$       229

$      (33,202)

$    193,503

Adjusted operating
income (loss) (1)

3,301

3,178

2,651

(743)

—

8,387

(a)

Intersegment revenue eliminations relate to intersegment revenue generating activities that occur between the Health Care Benefits segment, the Health Services segment, and/or the Pharmacy & Consumer Wellness segment.

Supplemental Information

(Unaudited)

Health Care Benefits segment

The following table summarizes the Health Care Benefits segment's performance for the respective periods:

Change

Three Months Ended

June 30,

Six Months Ended

June 30,

Three Months Ended

June 30,

2026 vs 2025

Six Months Ended

June 30,

2026 vs 2025

In millions, except percentages and
basis points ("bps")

2026

2025

2026

2025

$

%

$

%

Revenues:

Premiums

$        35,119

$        34,184

$ 68,911

$        66,992

$     935

2.7 %

$  1,919

2.9 %

Services

1,911

1,667

3,628

3,282

244

14.6 %

346

10.5 %

Net investment income

508

407

970

794

101

24.8 %

176

22.2 %

  Total revenues

37,538

36,258

73,509

71,068

1,280

3.5 %

2,441

3.4 %

Health care costs

30,692

30,740

59,271

59,377

(48)

(0.2) %

(106)

(0.2) %

MBR (Health care costs as a %
of premium revenues) (3)

87.4 %

89.9 %

86.0 %

88.6 %

(250)

bps

(260)

bps

Operating expenses

$ 4,655

$ 4,516

$   9,241

$ 9,015

$     139

3.1 %

$     226

2.5 %

Operating expenses as a % of
total revenues

12.4 %

12.5 %

12.6 %

12.7 %

Operating income

$ 2,191

$ 1,002

$   4,997

$ 2,676

$  1,189

118.7 %

$  2,321

86.7 %

Operating income as a % of
total revenues

5.8 %

2.8 %

6.8 %

3.8 %

Adjusted operating income (1)

$ 2,426

$ 1,308

$   5,467

$ 3,301

$  1,118

85.5 %

$  2,166

65.6 %

Adjusted operating income as a
% of total revenues

6.5 %

3.6 %

7.4 %

4.6 %

Premium revenues (by business):

Government

$        28,494

$        25,930

$ 56,277

$        50,832

$  2,564

9.9 %

$  5,445

10.7 %

Commercial

6,625

8,254

12,634

16,160

(1,629)

(19.7) %

(3,526)

(21.8) %

The following table summarizes the Health Care Benefits segment's medical membership for the respective periods:

June 30, 2026

March 31, 2026

December 31, 2025

June 30, 2025

In thousands

Insured

ASC

Total

Insured

ASC

Total

Insured

ASC

Total

Insured

ASC

Total

Medical membership: (4)

Commercial

2,487

15,833

18,320

2,462

15,872

18,334

3,447

15,350

18,797

3,608

15,251

18,859

Medicare Advantage

4,202

—

4,202

4,175

—

4,175

4,267

—

4,267

4,240

—

4,240

Medicare Supplement

1,176

—

1,176

1,192

—

1,192

1,202

—

1,202

1,236

—

1,236

Medicaid

1,964

361

2,325

1,938

366

2,304

1,952

373

2,325

1,985

401

2,386

Total medical membership

9,829

16,194

26,023

9,767

16,238

26,005

10,868

15,723

26,591

11,069

15,652

26,721

Supplemental membership information:

Medicare Prescription Drug Plan (stand-alone)

3,870

3,889

4,041

4,065

The following table summarizes the Health Care Benefits segment's days claims payable for the respective periods:

June 30, 2026

March 31, 2026

December 31, 2025

June 30, 2025

Days Claims Payable (7)

41.7

42.9

38.9

40.9

Supplemental Information

(Unaudited)

Health Services segment

The following table summarizes the Health Services segment's performance for the respective periods:

Change

Three Months Ended

June 30,

Six Months Ended

June 30,

Three Months Ended

June 30,

2026 vs 2025

Six Months Ended

June 30,

2026 vs 2025

In millions, except percentages

2026

2025

2026

2025

$

%

$

%

Revenues:

Products

$ 49,216

$ 44,223

$ 94,942

$ 85,358

$  4,993

11.3 %

$   9,584

11.2 %

Services

2,580

2,233

5,091

4,546

347

15.5 %

545

12.0 %

Net investment income (loss)

(1)

(3)

(1)

11

2

66.7 %

(12)

(109.1) %

  Total revenues

51,795

46,453

100,032

89,915

5,342

11.5 %

10,117

11.3 %

Cost of products sold

47,908

43,080

92,627

83,195

4,828

11.2 %

9,432

11.3 %

Health care costs

1,350

1,101

2,652

2,148

249

22.6 %

504

23.5 %

Gross profit (8)

2,537

2,272

4,753

4,572

265

11.7 %

181

4.0 %

Gross margin (Gross profit as a
% of total revenues) (8)

4.9 %

4.9 %

4.8 %

5.1 %

Operating expenses

$    934

$  1,170

$  1,803

$  2,243

$   (236)

(20.2) %

$    (440)

(19.6) %

Operating expenses as a % of
total revenues

1.8 %

2.5 %

1.8 %

2.5 %

Operating income

$  1,603

$  1,102

$  2,950

$  2,329

$     501

45.5 %

$     621

26.7 %

Operating income as a % of
total revenues

3.1 %

2.4 %

2.9 %

2.6 %

Adjusted operating income (1)

$  1,733

$  1,575

$  3,222

$  3,178

$     158

10.0 %

$      44

1.4 %

Adjusted operating income as a
% of total revenues

3.3 %

3.4 %

3.2 %

3.5 %

Pharmacy claims processed (5) (6)

473.0

469.0

937.7

933.2

4.0

0.9 %

4.5

0.5 %

Supplemental Information

(Unaudited)

Pharmacy & Consumer Wellness segment The following table summarizes the Pharmacy & Consumer Wellness segment's performance for the respective periods:

Change

Three Months Ended

June 30,

Six Months Ended

June 30,

Three Months Ended

June 30,

2026 vs 2025

Six Months Ended

June 30,

2026 vs 2025

In millions, except percentages

2026

2025

2026

2025

$

%

$

%

Revenues:

Products

$        33,152

$ 32,942

$ 64,491

$ 64,227

$     210

0.6 %

$     264

0.4 %

Services

664

639

1,314

1,266

25

3.9 %

48

3.8 %

Total revenues

33,816

33,581

65,805

65,493

235

0.7 %

312

0.5 %

Cost of products sold

27,282

27,554

53,072

53,358

(272)

(1.0) %

(286)

(0.5) %

Gross profit (8)

6,534

6,027

12,733

12,135

507

8.4 %

598

4.9 %

Gross margin (Gross profit as a
% of total revenues) (8)

19.3 %

17.9 %

19.3 %

18.5 %

Operating expenses

$ 5,123

$  5,291

$ 10,188

$ 10,535

$   (168)

(3.2) %

$   (347)

(3.3) %

Operating expenses as a % of
total revenues

15.1 %

15.8 %

15.5 %

16.1 %

Operating income

$ 1,411

$    736

$  2,545

$  1,600

$     675

91.7 %

$     945

59.1 %

Operating income as a % of
total revenues

4.2 %

2.2 %

3.9 %

2.4 %

Adjusted operating income (1)

$ 1,475

$  1,338

$  2,672

$  2,651

$     137

10.2 %

$      21

0.8 %

Adjusted operating income as a
% of total revenues

4.4 %

4.0 %

4.1 %

4.0 %

Revenues (by major
goods/service lines):

Pharmacy

$        27,781

$ 27,631

$ 53,904

$ 53,707

$     150

0.5 %

$     197

0.4 %

Front Store

5,407

5,368

10,666

10,611

39

0.7 %

55

0.5 %

Other

628

582

1,235

1,175

46

7.9 %

60

5.1 %

Prescriptions filled (5) (6)

457.0

438.1

908.2

873.6

18.9

4.3 %

34.6

4.0 %

Same store sales increase: (9)

Total

2.6 %

15.4 %

2.7 %

14.8 %

Pharmacy

2.9 %

18.1 %

3.0 %

17.9 %

Front Store

1.0 %

3.4 %

1.1 %

1.5 %

Prescription volume (6)

7.0 %

6.4 %

6.9 %

6.5 %

Adjusted Earnings Per Share Guidance

(Unaudited)

The following reconciliations of projected net income attributable to CVS Health to projected adjusted income
attributable to CVS Health and calculations of projected GAAP diluted EPS and projected Adjusted EPS contain
forward-looking information. All forward-looking information involves risks and uncertainties. Actual results may
differ materially from those contemplated by the forward-looking information for a number of reasons as described in
our SEC filings, including those set forth in the Risk Factors section and under the heading "Cautionary Statement
Concerning Forward-Looking Statements" in our most recently filed Annual Report on Form 10-K and our most
recently filed Quarterly Report on Form 10-Q. See "Non-GAAP Financial Information" earlier in this press release
and endnote (2) later in this press release for more information on how we calculate Adjusted EPS.

Year Ending

December 31, 2026

Low

High

In millions, except per share amounts

Total
Company

Per
Common
Share

Total
Company

Per
Common
Share

Net income attributable to CVS Health (GAAP measure)

$     8,810

$       6.84

$     9,065

$      7.04

Non-GAAP adjustments:

Amortization of intangible assets

1,730

1.34

1,730

1.34

Net realized capital losses

29

0.02

29

0.02

Acquisition-related integration costs

80

0.06

80

0.06

Tax impact of non-GAAP adjustments

(463)

(0.36)

(463)

(0.36)

Adjusted income attributable to CVS Health (2)

$   10,186

$       7.90

$   10,441

$      8.10

Weighted average diluted shares outstanding

1,289

1,289

Endnotes

(1)  The Company defines adjusted operating income as operating income (GAAP measure) excluding the impact of amortization of intangible assets, net realized capital gains or losses and other items, if any, that neither relate to the ordinary course of the Company's business nor reflect the Company's underlying business performance, such as acquisition-related integration costs, certain legacy litigation charges, losses on Accountable Care assets and office real estate optimization charges. The chief operating decision maker (the "CODM") uses adjusted operating income as its principal measure of segment performance as it enhances the CODM's ability to compare past financial performance with current performance and analyze underlying business performance and trends. The consolidated measure is not determined in accordance with GAAP and should not be considered a substitute for, or superior to, the most directly comparable GAAP measure, consolidated operating income. See "Non-GAAP Financial Information" earlier in this press release for additional information regarding the items excluded from consolidated operating income in determining consolidated adjusted operating income.

(2)  GAAP diluted earnings per share and Adjusted EPS, respectively, are calculated by dividing net income attributable to CVS Health and adjusted income attributable to CVS Health by the Company's weighted average diluted shares outstanding. The Company defines adjusted income attributable to CVS Health as net income attributable to CVS Health (GAAP measure) excluding the impact of amortization of intangible assets, net realized capital gains or losses and other items, if any, that neither relate to the ordinary course of the Company's business nor reflect the Company's underlying business performance, such as acquisition-related integration costs, certain legacy litigation charges, losses on Accountable Care assets, office real estate optimization charges, as well as the corresponding income tax benefit or expense related to the items excluded from adjusted income attributable to CVS Health. See "Non-GAAP Financial Information" earlier in this press release for additional information regarding the items excluded from net income attributable to CVS Health in determining adjusted income attributable to CVS Health.

(3)  Medical benefit ratio is calculated by dividing the Health Care Benefits segment's health care costs by premium revenues and represents the percentage of premium revenues spent on medical benefits for the segment's insured members. Management uses MBR to assess the underlying business performance and underwriting of its insurance products, understand variances between actual results and expected results and identify trends in period-over-period results. MBR provides management and investors with information useful in assessing the operating results of the Health Care Benefits segment's insured products.

(4)  Medical membership represents the number of members covered by the Health Care Benefits segment's insured and ASC medical products and related services at a specified point in time. Management uses this metric to understand variances between actual medical membership and expected amounts as well as trends in period-over-period results. This metric provides management and investors with information useful in understanding the impact of medical membership on the Health Care Benefits segment's total revenues and operating results.

(5)  Pharmacy claims processed represents the number of prescription claims processed through the Company's pharmacy benefits manager and dispensed by either its retail network pharmacies or the Company's mail and specialty pharmacies. Prescriptions filled represents the number of prescriptions dispensed through the Pharmacy & Consumer Wellness segment's retail pharmacies and infusion services operations, as well as through the Omnicare long-term care pharmacies prior to their deconsolidation in September 2025. Management uses these metrics to understand variances between actual claims processed and prescriptions dispensed, respectively, and expected amounts as well as trends in period-over-period results. These metrics provide management and investors with information useful in understanding the impact of pharmacy claim volume and prescription volume, respectively, on segment total revenues and operating results.

(6)  Includes an adjustment to convert 90-day prescriptions to the equivalent of three 30-day prescriptions. This adjustment reflects the fact that these prescriptions include approximately three times the amount of product days supplied compared to a normal prescription. 

(7)  Days claims payable is calculated by dividing the Health Care Benefits segment's health care costs payable at the end of each quarter by its average health care costs per day during such quarter. Management and investors use this metric as one of the indicators of the adequacy of the health care costs payable liability at the end of each quarter.

(8)  Gross profit is calculated as the segment's total revenues less its cost of products sold, and, for the Health Services segment, health care costs. Gross margin is calculated by dividing the segment's gross profit by its total revenues and represents the percentage of total revenues that remains after incurring direct costs associated with the segment's products sold and services provided. Gross margin provides investors with information that may be useful in assessing the operating results of the Company's Health Services and Pharmacy & Consumer Wellness segments.

(9)  Same store sales and prescription volume represent the change in revenues and prescriptions filled in the Company's retail pharmacy stores that have been operating for greater than one year and digital sales initiated online or through mobile applications and fulfilled through the Company's distribution centers, expressed as a percentage that indicates the increase or decrease relative to the comparable prior period. Same store metrics exclude revenues and prescriptions from infusion services operations and long-term care pharmacies. Management uses these metrics to evaluate the performance of existing stores on a comparable basis and to inform future decisions regarding existing stores and new locations. Same-store metrics provide management and investors with information useful in understanding the portion of current revenues and prescriptions resulting from organic growth in existing locations versus the portion resulting from opening new stores.

SOURCE CVS Health

CVS Health (CVS - Free Report) is expected to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended June 2026. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.

The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on August 5. On the other hand, if they miss, the stock may move lower.

While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise.

Zacks Consensus EstimateThis drugstore chain and pharmacy benefits manager is expected to post quarterly earnings of $1.87 per share in its upcoming report, which represents a year-over-year change of +3.3%.

Revenues are expected to be $100.18 billion, up 1.3% from the year-ago quarter.

Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 0.44% higher over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.

Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change.

Price, Consensus and EPS Surprise

Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction).

The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.

Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.

A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.

Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).

How Have the Numbers Shaped Up for CVS Health?For CVS Health, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +1.42%.

On the other hand, the stock currently carries a Zacks Rank of #2.

So, this combination indicates that CVS Health will most likely beat the consensus EPS estimate.

Does Earnings Surprise History Hold Any Clue?Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.

For the last reported quarter, it was expected that CVS Health would post earnings of $2.21 per share when it actually produced earnings of $2.57, delivering a surprise of +16.29%.

Over the last four quarters, the company has beaten consensus EPS estimates four times.

Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.

That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.

CVS Health appears a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.

An Industry Player's Expected ResultsAnother stock from the Zacks Medical Services industry, Revvity (RVTY - Free Report) , is soon expected to post earnings of $1.23 per share for the quarter ended June 2026. This estimate indicates a year-over-year change of +4.2%. Revenues for the quarter are expected to be $704.54 million, down 2.2% from the year-ago quarter.

Over the last 30 days, the consensus EPS estimate for Revvity has remained unchanged. Nevertheless, the company now has an Earnings ESP of 0.00%, reflecting an equal Most Accurate Estimate.

This Earnings ESP, combined with its Zacks Rank #3 (Hold), makes it difficult to conclusively predict that Revvity will beat the consensus EPS estimate. The company beat consensus EPS estimates in each of the trailing four quarters.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

Arvest Bank Trust Division increased its holdings in CVS Health Corporation (NYSE:CVS – Free Report) by 2,401.7% during the 1st quarter, according to the company in its most recent disclosure with the SEC. The institutional investor owned 66,945 shares of the pharmacy operator’s stock after acquiring an additional 64,269 shares during the quarter. Arvest Bank Trust Division’s holdings in CVS Health were worth $4,808,000 as of its most recent filing with the SEC.

A number of other hedge funds have also recently bought and sold shares of the business. Vanguard Group Inc. increased its holdings in CVS Health by 1.5% in the fourth quarter. Vanguard Group Inc. now owns 120,709,530 shares of the pharmacy operator’s stock valued at $9,579,508,000 after buying an additional 1,824,424 shares during the last quarter. State Street Corp increased its position in CVS Health by 2.1% in the fourth quarter. State Street Corp now owns 60,183,743 shares of the pharmacy operator’s stock worth $4,776,182,000 after buying an additional 1,245,457 shares during the period. Capital International Investors increased its position in CVS Health by 3.4% in the fourth quarter. Capital International Investors now owns 27,592,356 shares of the pharmacy operator’s stock worth $2,189,793,000 after buying an additional 900,153 shares during the period. Norges Bank bought a new stake in CVS Health in the fourth quarter valued at $1,666,265,000. Finally, Morgan Stanley increased its holdings in shares of CVS Health by 6.3% in the 4th quarter. Morgan Stanley now owns 20,373,774 shares of the pharmacy operator’s stock worth $1,616,863,000 after acquiring an additional 1,211,631 shares during the period. Institutional investors and hedge funds own 80.66% of the company’s stock.

CVS Health Stock Up 2.6% CVS Health stock opened at $110.40 on Wednesday. CVS Health Corporation has a twelve month low of $58.50 and a twelve month high of $110.62. The company has a debt-to-equity ratio of 0.78, a quick ratio of 0.66 and a current ratio of 0.87. The firm has a market cap of $140.87 billion, a PE ratio of 48.64, a P/E/G ratio of 1.05 and a beta of 0.61. The firm’s 50 day moving average price is $99.58 and its two-hundred day moving average price is $85.58.

CVS Health (NYSE:CVS – Get Free Report) last issued its earnings results on Wednesday, May 6th. The pharmacy operator reported $2.57 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $2.21 by $0.36. CVS Health had a net margin of 0.72% and a return on equity of 11.88%. The company had revenue of $100.43 billion during the quarter, compared to analyst estimates of $94.99 billion. During the same quarter last year, the business posted $2.25 EPS. The company’s revenue for the quarter was up 6.2% on a year-over-year basis. CVS Health has set its FY 2026 guidance at 7.300-7.500 EPS. On average, research analysts predict that CVS Health Corporation will post 7.46 EPS for the current fiscal year.

CVS Health Dividend Announcement The company also recently announced a quarterly dividend, which will be paid on Monday, August 3rd. Shareholders of record on Thursday, July 23rd will be given a $0.665 dividend. This represents a $2.66 annualized dividend and a yield of 2.4%. The ex-dividend date of this dividend is Thursday, July 23rd. CVS Health’s dividend payout ratio is presently 117.18%.

Insider Activity In related news, Director Larry Robbins sold 1,983,538 shares of the stock in a transaction that occurred on Tuesday, May 19th. The stock was sold at an average price of $94.45, for a total value of $187,345,164.10. Following the transaction, the director owned 6,213,261 shares in the company, valued at approximately $586,842,501.45. This represents a 24.20% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through this link. Also, EVP Tilak Mandadi sold 69,551 shares of the firm’s stock in a transaction that occurred on Friday, May 8th. The shares were sold at an average price of $89.58, for a total transaction of $6,230,378.58. Following the transaction, the executive vice president directly owned 10,133 shares in the company, valued at approximately $907,714.14. The trade was a 87.28% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last ninety days, insiders sold 3,441,551 shares of company stock worth $323,703,977. Insiders own 0.85% of the company’s stock.

Key Headlines Impacting CVS Health Here are the key news stories impacting CVS Health this week:

Positive Sentiment: CVS announced that common prescription medications for dogs and cats are now available at its roughly 9,000 CVS Pharmacy locations nationwide, expanding the chain’s role beyond human prescriptions and potentially adding a small but incremental revenue stream while increasing store traffic. Pet medications now available at CVS Pharmacy® Positive Sentiment: Market commentary highlighted that CVS has been outperforming the broader market, reflecting continued investor confidence in the company’s ongoing operational improvement and turnaround efforts. CVS Health (CVS) Surpasses Market Returns: Some Facts Worth Knowing Positive Sentiment: Another report echoed the same outperformance theme, noting CVS’s strong trading versus the market and suggesting that investors remain focused on the company’s improving fundamentals. CVS Health (CVS) Surpasses Market Returns: Some Facts Worth Knowing Neutral Sentiment: A longer-form analysis argued CVS is still in the middle of a meaningful turnaround, with improving margins, declining leverage, and strong cash flow, but it also noted the stock is no longer viewed as a deep bargain after its rally. CVS Health Update: The C- Student Now Pulling Down A B+ Analysts Set New Price Targets Several research analysts have recently issued reports on CVS shares. Wells Fargo & Company increased their price target on CVS Health from $103.00 to $123.00 and gave the stock an “overweight” rating in a research note on Monday, July 13th. TD Cowen raised their price objective on shares of CVS Health from $105.00 to $110.00 and gave the company a “buy” rating in a research note on Monday, May 11th. HSBC reissued a “hold” rating and issued a $103.00 price objective on shares of CVS Health in a research note on Monday, July 6th. JPMorgan Chase & Co. lifted their price target on shares of CVS Health from $101.00 to $111.00 and gave the stock an “overweight” rating in a research report on Tuesday, May 12th. Finally, Cantor Fitzgerald upped their target price on CVS Health from $100.00 to $110.00 and gave the company an “overweight” rating in a report on Tuesday, July 7th. Twenty-one analysts have rated the stock with a Buy rating and three have given a Hold rating to the company’s stock. According to MarketBeat, the company currently has an average rating of “Moderate Buy” and a consensus price target of $105.38.

Get Our Latest Analysis on CVS Health

CVS Health Company Profile (Free Report)

CVS Health Corporation is a diversified healthcare company that operates a large network of retail pharmacies, pharmacy benefit management services and health care solutions. Headquartered in Woonsocket, Rhode Island, the company traces its roots to the early 1960s and has grown into an integrated provider of prescription drugs, over‑the‑counter products, clinical services and health insurance offerings. Its operating model combines retail pharmacy locations and in‑store clinics with broader pharmacy and health plan capabilities.

Key business activities include CVS Pharmacy retail operations, MinuteClinic walk‑in medical clinics and HealthHUB locations that offer expanded clinical services.

Recommended Stories Five stocks we like better than CVS Health Confidence Is Back, But Earnings Show the Consumer Is Being Picky AeroVironment’s Stock Is Down, But Drone Demand Is Taking Off 3M’s Redemption Arc: Can Q2 Earnings Change the Narrative? 3 Photonics Companies Making Quantum Tech Possible Want to see what other hedge funds are holding CVS? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for CVS Health Corporation (NYSE:CVS – Free Report).

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U.S. President Donald Trump arrives to an event to unveil the TrumpRx drug discount site, in the South Court Auditorium on the White House campus, in Washington, D.C., U.S., February 5, 2026.... Purchase Licensing Rights, opens new tab Read more

SummaryCompaniesSettlement would count TrumpRx purchases toward some plan deductiblesCVS must offer clients an option to opt out of rebate payment models, the FTC saidCVS said it would cap insulin out-of-pocket costs at $25 per monthNEW YORK, July 14 (Reuters) - CVS Health's (CVS.N), opens new tab Caremark has finalized a ‌settlement with the U.S. Federal Trade Commission in which it agreed to curb use of after-market discounts known as rebates and count consumers' TrumpRx purchases toward their deductibles, an FTC spokesperson said on Tuesday.

Similar to Cigna's settlement with the FTC earlier this year, the deal would curb practices critics say contribute to high drug costs. ​It would also require CVS' Caremark pharmacy benefit manager to include a patient's payments through the TrumpRx drug website toward the ​deductibles some of its health plans require, once regulations are in place to facilitate the TrumpRx program.

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The settlement ⁠is expected to bring billions of dollars in savings on drug prices, FTC Chairman Andrew Ferguson said in a statement.

“The FTC under President ​Trump won’t stand for anticompetitive behavior that drives up prices for American consumers,” Ferguson said.

U.S. President Donald Trump launched TrumpRx.gov, a website offering hundreds ​of generic and branded drugs at a discount, in February, with a particular focus on connecting consumers with low prices for highly popular weight-loss drugs from Eli Lilly (LLY.N), opens new tab and Novo Nordisk (NOVOb.CO), opens new tab.

Health plan deductibles are the minimum spend members must reach before leveraging their coverage. TrumpRx.gov sends cash-pay customers to drugmaker websites for discounted drugs, ​but has operated outside of insurance, limiting its value for some American consumers.

CVS must also provide an option to clients that allows them to ​opt out of rebate payment models, a spokesperson for the FTC said. These rebates are paid by drugmakers to the pharmacy benefit manager and may or ‌may not ⁠be passed on to the plan sponsor or consumer after a certain drug is dispensed.

Small pharmacies would also be given the option to be reimbursed for the actual cost of drugs they dispense plus a fee, in a bid to address complaints that pharmacy benefit managers do not fully reimburse independent local pharmacies.

“Today’s agreement advances and reinforces the changes we have already put in place and ensures affordability for families and ​patients across the country," said Ed ​DeVaney, a president at Caremark.

The decision ⁠to eliminate rebates will vary based on the client and how individual employers choose to structure their own pharmacy benefit, a spokesperson for CVS said. But the company aims to encourage its clients to pass ​through discounts to individual members, CVS said in a release on Tuesday.

The FTC's original lawsuit, launched in ​2024, said Caremark, ⁠Cigna's (CI.N), opens new tab Express Scripts, and UnitedHealth's OptumRx (UNH.N), opens new tab forced patients to pay higher prices for insulin.

CVS reached a proposed settlement with the regulator in March, and the FTC said the deal was similar to one with Express Scripts.

Regulators have said the rebate model incentivizes companies to raise list prices and ultimately steers ⁠customers to ​pricier drugs.

Pharmacy benefit managers negotiate the price of drugs with manufacturers, on behalf of plan ​sponsors, such as employers.

CVS will also enhance its reporting on the price of drugs and member payments it receives, shift to a fee-based compensation structure, and cap out-of-pocket cost ​of insulin at $25 per month, the company said.

Reporting by Amina Niasse and Jody Godoy in New York; editing by Caroline Humer and Aurora Ellis

Our Standards: The Thomson Reuters Trust Principles., opens new tab

Jody Godoy reports on tech policy and antitrust enforcement, including how regulators are responding to the rise of AI. Reach her at [email protected]

In the latest close session, CVS Health (CVS - Free Report) was down 1.59% at $102.81. This change lagged the S&P 500's daily gain of 0.81%. Elsewhere, the Dow gained 0.27%, while the tech-heavy Nasdaq added 1.3%.

The drugstore chain and pharmacy benefits manager's stock has climbed by 6.58% in the past month, falling short of the Medical sector's gain of 7% and outpacing the S&P 500's gain of 1.13%.

Analysts and investors alike will be keeping a close eye on the performance of CVS Health in its upcoming earnings disclosure. The company's earnings report is set to go public on August 5, 2026. The company's upcoming EPS is projected at $1.86, signifying a 2.76% increase compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $100.18 billion, reflecting a 1.28% rise from the equivalent quarter last year.

For the full year, the Zacks Consensus Estimates are projecting earnings of $7.44 per share and revenue of $409 billion, which would represent changes of +10.22% and +1.72%, respectively, from the prior year.

Investors should also take note of any recent adjustments to analyst estimates for CVS Health. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Currently, CVS Health is carrying a Zacks Rank of #2 (Buy).

With respect to valuation, CVS Health is currently being traded at a Forward P/E ratio of 14.05. This valuation marks a discount compared to its industry average Forward P/E of 15.57.

We can also see that CVS currently has a PEG ratio of 1.02. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The average PEG ratio for the Medical Services industry stood at 1.46 at the close of the market yesterday.

The Medical Services industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 96, which puts it in the top 40% of all 250+ industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.

The market for weight-loss drugs, led by GLP-1 medicines like Wegovy, is on a rapid northbound trajectory. One good way to capitalize on it is to invest in pharmaceutical companies that currently lead this niche or have the potential to establish a strong foothold. However, it isn't just drugmakers that may profit from the rapid rise of the GLP-1 category. Other companies across the healthcare delivery funnel could also see increased sales and profits thanks to this trend, and CVS Health (CVS 0.26%), a leading pharmacy chain, is one of them. The company recently announced a GLP-1 program that had Wall Street buzzing, as some analysts think the move makes the stock more attractive. Should investors consider buying CVS Health's shares right now?

Image source: The Motley Fool.

Making GLP-1 medicines more accessible Weight-loss drugs haven't been easy for patients to obtain. One of the main reasons for that is cost. GLP-1 medicines are expensive. Even with recent price drops, they can cost several hundred dollars per month -- a meaningful hit to many patients' budgets. And since insurance coverage for these therapies for weight loss has been spotty at best, many are left having to forego them, even when they need them. Further, some physicians have been somewhat hesitant to prescribe GLP-1s to patients due to coverage issues and other factors. And even when patients start taking these medicines, a meaningful number experience uncomfortable side effects that make their weight loss journeys challenging.

Enter CVS Health. The company recently announced a program to help patients through all this, available at its more than 9,000 pharmacies across the U.S. CVS Health will offer virtual visits priced at $49 with clinicians who can evaluate patients and prescribe GLP-1 medicines. The drugs will cost as little as $25 per month for patients with insurance coverage, $50 per month for eligible Medicare patients, or will start at $149 monthly for those without insurance. The pharmacy giant will also provide one-on-one professional support and access to over-the-counter products to help people manage side effects.

This initiative could attract many patients to the company's platform and help boost revenue in its retail pharmacy division. Allen Lutz, an analyst at Bank of America (BAC 0.53%), recently raised his price target on the stock to $110 from $100 following these developments. The company's shares are currently trading at about $104 each, so the new price target implies a modest upside from current levels.

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Is CVS Health stock a buy? CVS Health has performed well over the past 18 months, after several years of challenges. The company's financial results have improved as it has made significant headway in containing costs within its Medicare Advantage division, where rising expenses were eroding its profits and margins. In the first quarter, CVS Health's revenue grew by a healthy 6% year over year to $100.4 billion, while its adjusted earnings per share rose 14% to $2.57. CVS Health also increased its guidance for the full fiscal year 2026.

The healthcare giant's ability to successfully weather the storm it faced in recent years and bounce back speaks volumes about its resilience as a business. And on top of that, CVS Health also has outstanding long-term prospects. The company's well-known brand name, extensive network of retail locations, and diversified healthcare business spanning pharmacy services, insurance, primary care, and more enable it to remain with patients throughout much of their care journey.

That's exactly what it is doing with its new GLP-1 program: offering consultations, medicines, and insurance coverage for eligible patients, as well as one-on-one follow-up with professionals and over-the-counter medications to help manage side effects. The diversified nature of CVS Health's business grants the company a strong competitive advantage and may help it capitalize on the healthcare sector's expansion over the next few decades, especially as the world's population ages.

Lastly, CVS Health is also a solid dividend stock, with a forward yield currently of 2.5%, compared to the S&P 500's average of 1.1%. The company has increased its payouts by 56.5% over the past decade. All these are good reasons why it's worth it for long-term income seekers to purchase CVS Health's shares.