CVS Health (NYSE:CVS) Posts Earnings Results, Beats Expectations By $0.72 EPS

CVS Health (NYSE:CVS) issued its quarterly earnings results on Wednesday. The pharmacy operator reported $2.58 earnings per share for the quarter, beating analysts’ consensus estimates of $1.86 by $0.72, FiscalAI reports. CVS Health had a return on equity of 11.88% and a net margin of 0.72%.The business had revenue of $106.10 billion during the quarter, compared to the consensus estimate of $100.03 billion. During the same period in the previous year, the business earned $1.81 EPS. The business’s quarterly revenue was up 7.3% on a year-over-year basis. CVS Health updated its FY 2026 guidance to 7.900-8.100 EPS.

Here are the key takeaways from CVS Health’s conference call:

• CVS raised its 2026 outlook after a strong quarter, increasing adjusted EPS guidance by $0.60 to $7.90–$8.10 and raising operating cash-flow expectations to at least $11.5 billion.
• Second-quarter performance was broad-based: revenue rose more than 7% to over $106 billion, adjusted operating income increased 35% to approximately $5.2 billion, and adjusted EPS grew over 40% to $2.58. All operating segments reported year-over-year earnings growth.
• Aetna’s margin recovery is progressing faster than expected, with more than $2 billion of year-to-date adjusted operating-income improvement; management cited disciplined pricing, medical-cost management, and favorable Medicare performance.
• Management sees growing opportunities in GLP-1s through formulary management, cash-pay offerings, MinuteClinic weight-management visits, and manufacturer partnerships with Lilly and Novo. The company plans to reduce the virtual weight-management visit price to $29 and expand same-day pharmacy access.
• CVS expects 2027 headwinds from continued pressure in its 340B business and lower Caremark membership, partly due to more selective contracting and health-plan product exits. Management said these pressures should be offset over time by specialty pharmacy growth, generic savings, and broader enterprise momentum.

CVS Health Stock Performance

Shares of CVS traded down $4.70 during mid-day trading on Wednesday, reaching $99.72. 11,800,467 shares of the company’s stock traded hands, compared to its average volume of 8,414,585. 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 business’s 50-day moving average price is $101.96 and its 200-day moving average price is $87.43. The stock has a market capitalization of $127.24 billion, a P/E ratio of 43.87, a price-to-earnings-growth ratio of 1.03 and a beta of 0.61. CVS Health has a 12 month low of $62.52 and a 12 month high of $110.68.

CVS Health Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Monday, August 3rd. Shareholders of record on Thursday, July 23rd were paid a $0.665 dividend. The ex-dividend date was Thursday, July 23rd. This represents a $2.66 annualized dividend and a dividend yield of 2.7%. CVS Health’s dividend payout ratio (DPR) is presently 117.18%.

Analyst Ratings Changes

CVS has been the subject of several recent research reports. Piper Sandler reiterated an “overweight” rating and set a $113.00 target price on shares of CVS Health in a research note on Monday, June 1st. Sanford C. Bernstein lifted their price target on shares of CVS Health from $94.00 to $106.00 and gave the company an “outperform” rating in a report on Tuesday, May 12th. HSBC reaffirmed a “hold” rating and set a $103.00 price objective on shares of CVS Health in a research report on Monday, July 6th. Mizuho raised their target price on shares of CVS Health from $110.00 to $115.00 and gave the stock an “outperform” rating in a report on Monday, June 8th. Finally, Deutsche Bank Aktiengesellschaft upped their target price on CVS Health from $88.00 to $92.00 and gave the company a “buy” rating in a report on Thursday, May 7th. Twenty-one investment analysts have rated the stock with a Buy rating and three have issued a Hold rating to the stock. According to MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and a consensus price target of $105.67.

Insider Activity at CVS Health

In other news, EVP Tilak Mandadi sold 69,551 shares of the stock in a transaction on Friday, May 8th. The stock was sold at an average price of $89.58, for a total value of $6,230,378.58. Following the completion of the transaction, the executive vice president owned 10,133 shares of the company’s stock, valued at approximately $907,714.14. This represents a 87.28% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this link. Also, Director Larry Robbins sold 370,462 shares of the firm’s stock in a transaction on Thursday, May 21st. The shares were sold at an average price of $93.45, for a total value of $34,619,673.90. Following the transaction, the director directly owned 4,824,799 shares in the company, valued at $450,877,466.55. This trade represents a 7.13% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last 90 days, insiders sold 3,441,551 shares of company stock worth $323,703,977. 0.85% of the stock is owned by insiders.

Hedge Funds Weigh In On CVS Health

Several large investors have recently bought and sold shares of CVS. Swiss RE Ltd. bought a new stake in shares of CVS Health during the 4th quarter worth about $26,000. Caitong International Asset Management Co. Ltd boosted its holdings in shares of CVS Health by 407.2% in the third quarter. Caitong International Asset Management Co. Ltd now owns 350 shares of the pharmacy operator’s stock valued at $26,000 after acquiring an additional 281 shares in the last quarter. Mcguire Capital Advisors Inc. acquired a new position in shares of CVS Health during the fourth quarter valued at approximately $28,000. Kemnay Advisory Services Inc. bought a new stake in CVS Health during the fourth quarter worth approximately $40,000. Finally, Prosperity Bancshares Inc acquired a new stake in CVS Health in the fourth quarter worth approximately $43,000. Institutional investors and hedge funds own 80.66% of the company’s stock.

CVS Health News Roundup

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

• Positive Sentiment: CVS reported adjusted earnings of $2.58 per share, well above the roughly $1.86-$1.87 consensus, while revenue rose 7.3% year over year to $106.1 billion, also exceeding estimates. CVS raises guidance as it posts nearly $3B in profit, $106B in revenue for Q2
• Positive Sentiment: Improved medical-cost trends at Aetna, a more profitable pharmacy-drug mix and bonus payments tied to highly rated government health plans helped drive the nearly $2.9 billion quarterly profit. All three major segments—insurance, pharmacy and health services—beat revenue expectations. CVS blows past estimates, hikes guidance as insurance unit continues to improve
• Positive Sentiment: CVS raised its 2026 adjusted EPS outlook to $7.90-$8.10 from $7.30-$7.50, increased GAAP EPS guidance to $6.84-$7.04, and lifted operating-cash-flow guidance to at least $11.5 billion from $9.5 billion. Year-to-date operating cash flow was $10.6 billion. CVS Health Corporation reports strong second quarter 2026 results and raises guidance
• Positive Sentiment: The company launched an expanded GLP-1 weight-management offering and a collaboration with Eli Lilly, including access to Zepbound through CVS Pharmacy, lower-cost MinuteClinic digital visits and same-day prescription pickup. The initiative could support growth in pharmacy, care delivery and consumer health services. CVS enhances direct-to-consumer weight management offerings

About CVS Health

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.