CVS Health (NYSE:CVS) Releases FY 2026 Earnings Guidance

Key Points

• CVS issued FY 2026 EPS guidance of 7.30–7.50 versus the consensus of 7.16 and set revenue guidance around $405B, slightly below the consensus $405.4B.
• The company reported a strong Q1 beat—adjusted EPS $2.57 (vs. $2.21 est.) and revenue $100.43B (vs. $94.97B est.)—with management attributing much of the improvement to Aetna’s better margins and tighter medical-cost controls.
• CVS Caremark will prefer interchangeable biosimilars over certain reference biologics starting July 1, a formulary move expected to reduce pharmacy spend and support PBM and overall gross-margin improvement.

CVS Health (NYSE:CVS - Get Free Report) issued an update on its FY 2026 earnings guidance on Wednesday morning. The company provided EPS guidance of 7.300-7.500 for the period, compared to the consensus EPS estimate of 7.160. The company issued revenue guidance of $405.0B-, compared to the consensus revenue estimate of $405.4 billion.

Analyst Upgrades and Downgrades

A number of research firms have recently commented on CVS. Bank of America dropped their price objective on CVS Health from $100.00 to $95.00 and set a "buy" rating on the stock in a report on Tuesday, January 27th. Piper Sandler lowered their price target on CVS Health from $101.00 to $99.00 and set an "overweight" rating for the company in a report on Tuesday, March 31st. The Goldman Sachs Group raised their price objective on shares of CVS Health from $95.00 to $97.00 and gave the stock a "buy" rating in a report on Thursday, February 12th. Argus reduced their price objective on shares of CVS Health from $91.00 to $90.00 and set a "buy" rating for the company in a research report on Wednesday, January 28th. Finally, TD Cowen reaffirmed a "buy" rating on shares of CVS Health in a research report on Friday, March 13th. Twenty investment analysts have rated the stock with a Buy rating and four have issued a Hold rating to the company. According to data from MarketBeat.com, CVS Health has an average rating of "Moderate Buy" and an average price target of $94.61.

CVS Health Stock Performance

Shares of CVS Health stock opened at $80.67 on Wednesday. The stock has a market capitalization of $103.39 billion, a price-to-earnings ratio of 58.46, a PEG ratio of 0.86 and a beta of 0.60. The firm's fifty day simple moving average is $76.40 and its 200-day simple moving average is $77.96. The company has a debt-to-equity ratio of 0.80, a current ratio of 0.84 and a quick ratio of 0.63. CVS Health has a 12 month low of $58.35 and a 12 month high of $85.15.

CVS Health (NYSE:CVS - Get Free Report) last issued its quarterly earnings data on Wednesday, May 6th. The pharmacy operator reported $2.57 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.21 by $0.36. CVS Health had a net margin of 0.44% and a return on equity of 11.31%. The company had revenue of $100.43 billion for the quarter, compared to the consensus estimate of $94.97 billion. CVS Health has set its FY 2026 guidance at 7.300-7.500 EPS. As a group, equities analysts forecast that CVS Health will post 7.14 earnings per share for the current year.

CVS Health Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Monday, May 4th. Shareholders of record on Thursday, April 23rd were paid a dividend of $0.665 per share. The ex-dividend date of this dividend was Thursday, April 23rd. This represents a $2.66 annualized dividend and a yield of 3.3%. CVS Health's dividend payout ratio is currently 192.75%.

CVS Health News Roundup

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

• Positive Sentiment: Q1 earnings beat and guidance raise — CVS reported adjusted EPS $2.57 (vs. $2.21 est.), revenue $100.4B (vs. $94.97B est.), and raised full-year GAAP and adjusted EPS and cash-flow guidance, signaling better-than-expected operating leverage. PR Newswire Reuters
• Positive Sentiment: Insurance turnaround lifting results — Management attributed much of the improvement to Aetna's better margins and tighter medical-cost controls, reducing a prior earnings overhang for the company. CNBC
• Positive Sentiment: Biosimilar formulary moves support margin and client-savings goals — CVS Caremark will prefer interchangeable biosimilars over select reference biologics starting July 1, expected to cut pharmacy spend and improve gross margins for PBM clients and CVS. PR Newswire - Biosimilars
• Neutral Sentiment: Analyst price-target tweak — HSBC raised its CVS price target to $85 while keeping a Hold rating, a modest endorsement but not a change to consensus sentiment. MarketScreener
• Neutral Sentiment: Strategic VC investment — CVS Health Ventures invested in Fathom to accelerate autonomous coding capabilities; strategic but not immediately material to near-term revenue. Yahoo (investment note)
• Neutral Sentiment: Positive media/TV commentary — Jim Cramer suggested CVS could deliver a strong quarter ahead of results, a sentiment tailwind but not a fundamental driver. InsiderMonkey
• Negative Sentiment: Partnership/strategy scrutiny — An opinion piece flagged potential trade-offs from CVS’s affiliation with Mass General Brigham around access vs. cost; these debates can create regulatory or reputational noise for care-expansion plans. Boston Globe

Institutional Investors Weigh In On CVS Health

Several hedge funds have recently modified their holdings of the stock. Sei Investments Co. lifted its holdings in shares of CVS Health by 17.4% in the second quarter. Sei Investments Co. now owns 905,715 shares of the pharmacy operator's stock valued at $62,474,000 after purchasing an additional 134,535 shares in the last quarter. The Manufacturers Life Insurance Company increased its stake in shares of CVS Health by 1.2% during the 2nd quarter. The Manufacturers Life Insurance Company now owns 1,121,377 shares of the pharmacy operator's stock worth $77,353,000 after purchasing an additional 13,329 shares in the last quarter. Treasurer of the State of North Carolina raised its position in shares of CVS Health by 1.3% during the 2nd quarter. Treasurer of the State of North Carolina now owns 585,073 shares of the pharmacy operator's stock worth $40,358,000 after purchasing an additional 7,588 shares during the last quarter. HUB Investment Partners LLC lifted its stake in CVS Health by 25.0% in the 2nd quarter. HUB Investment Partners LLC now owns 15,063 shares of the pharmacy operator's stock valued at $1,039,000 after buying an additional 3,011 shares in the last quarter. Finally, Alliancebernstein L.P. lifted its stake in CVS Health by 8.0% in the 2nd quarter. Alliancebernstein L.P. now owns 1,609,404 shares of the pharmacy operator's stock valued at $111,017,000 after buying an additional 119,439 shares in the last quarter. 80.66% of the stock is owned by institutional investors and hedge funds.

CVS Health Company Profile

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.

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