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

Key Points

• CVS Health raised its FY 2026 adjusted EPS guidance to $7.90–$8.10, above the prior range of $7.30–$7.50 and the analyst consensus of $7.44. Operating cash-flow guidance also increased to at least $11.5 billion.
• Second-quarter results exceeded expectations, with revenue of $106.1 billion and adjusted EPS of $2.58 versus the $1.86 consensus; all three major segments surpassed revenue estimates.
• Improved Aetna performance, favorable government-plan bonuses and a more profitable pharmacy drug mix supported the outlook, while CVS also expanded direct-to-consumer weight-management services through an Eli Lilly collaboration.

CVS Health (NYSE:CVS - Get Free Report) issued an update on its FY 2026 earnings guidance on Wednesday morning. The company provided earnings per share guidance of 7.900-8.100 for the period, compared to the consensus EPS estimate of 7.440. The company issued revenue guidance of $414.0M-, compared to the consensus revenue estimate of $409.2 billion.

Wall Street Analysts Forecast Growth

Several equities research analysts have commented on CVS shares. UBS Group upped their target price on shares of CVS Health from $115.00 to $122.00 and gave the company a "buy" rating in a research note on Friday, July 24th. HSBC restated a "hold" rating and issued a $103.00 price target on shares of CVS Health in a research note on Monday, July 6th. Robert W. Baird increased their price target on shares of CVS Health from $92.00 to $94.00 and gave the company an "outperform" rating in a research note on Wednesday, April 15th. Morgan Stanley lifted their price target on CVS Health from $106.00 to $111.00 and gave the stock an "overweight" rating in a report on Thursday, June 4th. Finally, JPMorgan Chase & Co. raised their price target on CVS Health from $101.00 to $111.00 and gave the company an "overweight" rating in a report on Tuesday, May 12th. Twenty-one investment analysts have rated the stock with a Buy rating and three have given a Hold rating to the stock. Based on data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and an average target price of $105.67.

CVS Health Price Performance

CVS stock opened at $104.27 on Wednesday. The company has a market capitalization of $133.04 billion, a P/E ratio of 45.93, a PEG ratio of 1.03 and a beta of 0.61. CVS Health has a 52-week low of $61.35 and a 52-week high of $110.68. The company has a fifty day moving average price of $101.96 and a 200-day moving average price of $87.43. The company has a debt-to-equity ratio of 0.78, a quick ratio of 0.66 and a current ratio of 0.87.

CVS Health (NYSE:CVS - Get Free Report) last posted its quarterly earnings data on Wednesday, August 5th. The pharmacy operator reported $2.58 earnings per share for the quarter, topping the consensus estimate of $1.86 by $0.72. CVS Health had a net margin of 0.72% and a return on equity of 11.88%. The company had revenue of $106.10 billion during the quarter, compared to analysts' expectations of $100.03 billion. CVS Health has set its FY 2026 guidance at 7.900-8.100 EPS. As a group, equities analysts expect that CVS Health will post 7.46 EPS for the current year.

CVS Health Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Monday, August 3rd. Stockholders of record on Thursday, July 23rd were paid a $0.665 dividend. The ex-dividend date of this dividend was Thursday, July 23rd. This represents a $2.66 annualized dividend and a dividend yield of 2.6%. CVS Health's dividend payout ratio is 117.18%.

Insider Activity

In other CVS Health news, Director Larry Robbins sold 370,462 shares of the company's stock in a transaction dated Thursday, May 21st. The shares were sold at an average price of $93.45, for a total transaction of $34,619,673.90. Following the sale, the director directly owned 4,824,799 shares of the company's stock, valued at $450,877,466.55. This represents a 7.13% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, EVP Tilak Mandadi sold 69,551 shares of the business's stock in a transaction 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 owned 10,133 shares of the company's stock, valued at $907,714.14. This trade represents a 87.28% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last quarter, insiders sold 3,441,551 shares of company stock valued at $323,703,977. 0.85% of the stock is currently owned by corporate insiders.

Key CVS Health News

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

• Positive Sentiment: CVS reported second-quarter revenue of $106.1 billion, up 7.3% year over year, while adjusted EPS of $2.58 exceeded the $1.86 analyst consensus. All three major segments—Aetna insurance, pharmacy and health services—surpassed revenue expectations. CVS blows past estimates, hikes guidance as insurance unit continues to improve
• Positive Sentiment: Management raised full-year 2026 adjusted EPS guidance to $7.90–$8.10 from $7.30–$7.50, above the prior analyst consensus of $7.44. Operating cash-flow guidance also increased to at least $11.5 billion from $9.5 billion. CVS Health reports strong second-quarter results and raises guidance
• Positive Sentiment: The results suggest progress at Aetna, where improved performance and bonus payments tied to highly rated government health plans supported profitability. CVS also cited a more profitable drug mix in its pharmacy business. CVS raises annual profit forecast on improved drug revenues
• Positive Sentiment: CVS launched expanded direct-to-consumer weight-management services and a collaboration with Eli Lilly, offering access to Zepbound and other GLP-1 medications through CVS Pharmacy and its app. The initiative could create additional pharmacy, clinic and care-support revenue opportunities. CVS enhances direct-to-consumer weight-management offerings
• Neutral Sentiment: Although profitability improved substantially, CVS continues to operate with a thin reported net margin of 0.72%, leaving investors focused on execution, medical-cost trends and the durability of Aetna’s recovery.

Institutional Investors Weigh In On CVS Health

A number of hedge funds and other institutional investors have recently modified their holdings of CVS. Financial Advisors Network Inc. grew its stake in shares of CVS Health by 12.9% in the second quarter. Financial Advisors Network Inc. now owns 3,699 shares of the pharmacy operator's stock worth $255,000 after purchasing an additional 423 shares during the last quarter. Resurgent Financial Advisors LLC purchased a new stake in CVS Health in the third quarter worth $215,000. W Advisors LLC bought a new position in CVS Health in the 3rd quarter worth $204,000. Strive Financial Group LLC purchased a new position in shares of CVS Health during the fourth quarter valued at about $197,000. Finally, Johnson Financial Group Inc. boosted its position in shares of CVS Health by 94.9% during the third quarter. Johnson Financial Group Inc. now owns 1,928 shares of the pharmacy operator's stock valued at $145,000 after purchasing an additional 939 shares in the last quarter. Institutional investors own 80.66% of the company's stock.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

Continue following MarketBeat

Add MarketBeat as your preferred source on Google to see our latest stories in your feed.

Add As Preferred Source