CVS Health (NYSE:CVS) Announces Quarterly Earnings Results

CVS Health (NYSE:CVS) issued its quarterly earnings results on Wednesday. The pharmacy operator reported $2.09 EPS for the quarter, topping the consensus estimate of $1.65 by $0.44, FiscalAI reports. CVS Health had a net margin of 1.18% and a return on equity of 13.12%. The firm had revenue of $108.40 billion for the quarter, compared to analysts’ expectations of $104.72 billion. During the same period in the previous year, the business earned $1.60 earnings per share. CVS Health’s revenue for the quarter was up 5.4% compared to the same quarter last year.

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

• CVS reported Q3 adjusted EPS of $2.09, up more than 30% year over year, and raised its 2026 adjusted EPS outlook to at least $8.20 and cash flow from operations outlook to at least $15.5 billion.
• Aetna’s adjusted operating income rose to about $900 million, with its medical benefit ratio improving to 91.3%; management said Medicare Advantage is expected to return to profitability in 2026 and deliver further margin improvement in 2027. Pharmacy and Consumer Wellness operating income also rose more than 10%, supported by prescription volume growth.
• CVS expects Health Services adjusted operating income of at least $7 billion in 2027, while identifying declines in 340B and health-plan client membership as headwinds. Management called 2027 a trough year for the segment, with a return to growth expected afterward.
• CVS plans to separate into a health solutions company retaining Aetna, Caremark, specialty pharmacy, and care delivery, and a retail pharmacy and community healthcare company. The tax-free separation is targeted for the first half of 2028; management said both companies should have investment-grade balance sheets and that commercial agreements will preserve key offerings.
• Management set a 2027 adjusted EPS floor of $8.65 and said it expects to reach the high end of its mid-teens adjusted EPS growth range through 2028. The outlook assumes share repurchases offset dilution, but does not include an added contribution from buybacks.

CVS Health Trading Up 0.6%

NYSE CVS traded up $0.47 on Thursday, hitting $80.42. 12,640,003 shares of the company were exchanged, compared to its average volume of 8,479,943. The company has a debt-to-equity ratio of 0.74, a current ratio of 0.87 and a quick ratio of 0.66. CVS Health has a twelve month low of $69.51 and a twelve month high of $110.68. The firm has a market capitalization of $102.86 billion, a P/E ratio of 21.25, a price-to-earnings-growth ratio of 0.85 and a beta of 0.58. The company’s 50 day moving average price is $90.82 and its 200-day moving average price is $88.86.

CVS Health Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Monday, November 2nd. Shareholders of record on Thursday, October 22nd were issued a dividend of $0.6650 per share. This represents a $2.66 annualized dividend and a yield of 3.3%. The ex-dividend date was Thursday, October 22nd. CVS Health’s payout ratio is presently 70.37%.

Wall Street Analyst Weigh In

A number of research firms recently commented on CVS. Royal Bank Of Canada boosted their target price on shares of CVS Health from $107.00 to $113.00 and gave the stock an “outperform” rating in a report on Thursday, July 9th. Evercore restated an “outperform” rating on shares of CVS Health in a report on Wednesday. Truist Financial lifted their price target on shares of CVS Health from $108.00 to $118.00 and gave the stock a “buy” rating in a research report on Tuesday, July 14th. Sanford C. Bernstein reaffirmed an “outperform” rating and issued a $112.00 price target on shares of CVS Health in a report on Wednesday, September 9th. Finally, Barclays dropped their price target on CVS Health from $108.00 to $107.00 and set an “overweight” rating on the stock in a report on Thursday. Twenty-two investment analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company’s stock. According to data from MarketBeat, the company has a consensus rating of “Moderate Buy” and a consensus price target of $109.42.

Key Headlines Impacting CVS Health

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

• Positive Sentiment: CVS reported third-quarter adjusted earnings of $2.09 per share, above the roughly $1.65 consensus, while revenue rose 5.4% year over year to $108.4 billion. Management also raised its 2026 adjusted EPS outlook to at least $8.20 and operating cash flow guidance to at least $15.5 billion. Read More.
• Neutral Sentiment: The company plans to separate its retail pharmacy business from Aetna, Caremark and related healthcare operations, aiming to create two publicly traded companies by the first half of 2028. The separation could let each business focus on its own operations, but the potential value for shareholders will depend on how it is structured and executed. Read More.
• Negative Sentiment: The breakup announcement has overshadowed the earnings beat. Investors may be concerned about the execution risks of separating the businesses, including how debt and costs will be allocated and whether the companies can maintain the benefits of their existing integration. Read More.

About CVS Health

CVS Health Corporation (NYSE: CVS) is a diversified health care company that provides pharmacy, insurance and health services in the United States. Its businesses serve consumers, employers, health plans and health care providers through pharmacies, benefit programs, insurance coverage and clinical care services.

The company’s Pharmacy Services segment, led by CVS Caremark, manages prescription drug benefits for employers, insurers and government programs. CVS Pharmacy operates retail pharmacies and health-focused stores that dispense prescriptions and offer over-the-counter products, health and wellness merchandise, immunizations and related services.