CVS Health Tops Estimates at $108.4 Billion Revenue and Raises 2026 Guidance

CVS Health (NYSE: CVS) reported third-quarter revenue of $108.4 billion, above the $104.69 billion analysts expected, and adjusted EPS of $2.09 against the $1.65 consensus estimate, in an 8-K filed Wednesday. Revenue rose 5.4% from $102.9 billion a year earlier.

GAAP diluted EPS was $1.68, compared with a loss of $3.13 a year earlier. The prior-year period included a $5.7 billion goodwill impairment charge. Third-quarter net income was $2.17 billion.

Segment results

Health Care Benefits adjusted operating income rose to $912 million from $314 million, and its medical benefit ratio fell to 91.3% from 92.8%. The company attributed the improvement primarily to underlying performance in its Government business. Medical membership was 26.1 million, consistent with June 30.

Health Services revenue increased 9.5% to $54.0 billion, and adjusted operating income rose 2.7% to $2.1 billion. Pharmacy & Consumer Wellness revenue fell 2.0% to $35.5 billion, while adjusted operating income rose 10.6% to $1.6 billion, which the company tied to core pharmacy strength and contributions from its Rite Aid asset acquisitions.

Raised full-year guidance

CVS raised its 2026 outlook. GAAP diluted EPS is now projected at no less than $6.98, up from a range of $6.84 to $7.04. Adjusted EPS is now at least $8.20, up from $7.90 to $8.10. Cash flow from operations is now at least $15.5 billion, up from at least $11.5 billion.

Analysts expected full-year adjusted EPS of $8.04 and revenue of $417.87 billion. The company projects revenue of at least $420.0 billion. It said it is maintaining a cautious view for the rest of the year, citing continued elevated cost trends and potential macro headwinds.

Year-to-date cash flow from operations was $15.3 billion. Shares closed at $91.41 on Tuesday, Nov. 3, the last session before the release, for a market value of about $116.91 billion.