CVS Health (NYSE:CVS) Issues Earnings Results, Beats Expectations By $0.09 EPS

CVS Health (NYSE:CVS) released its quarterly earnings data on Tuesday. The pharmacy operator reported $1.09 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.00 by $0.09, FiscalAI reports. The business had revenue of $105.69 billion for the quarter, compared to analysts’ expectations of $103.67 billion. CVS Health had a return on equity of 11.45% and a net margin of 0.12%.CVS Health’s quarterly revenue was up 8.2% on a year-over-year basis. During the same period in the previous year, the business posted $1.19 earnings per share. CVS Health updated its FY 2026 guidance to 5.940-6.140 EPS.

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

• Strong FY2025 financials — adjusted EPS of $6.75, operating cash flow of $10.6 billion, revenue >$400 billion, and management reaffirmed 2026 guidance of $7.00–$7.20 EPS and revenue of at least $400 billion.
• CVS says the 2027 Medicare Advantage Advanced Rate Notice is insufficient relative to medical cost trends, posing regulatory/rate risk to MA margins even as the company engages in advocacy and maintains its margin-recovery plan.
• Aetna momentum — a >$2.6 billion year-over-year improvement in adjusted operating income, leadership refresh and strong Stars ratings that management says support continued margin recovery toward targets.
• PBM and pharmacy progress — Caremark’s TrueCost and negotiation capabilities, plus 96% adoption of a Humira biosimilar (driving >$1.5 billion in client/member savings), underpin management’s view of durable PBM value and alignment with transparency legislation.
• Retail turnaround and integration — CVS Pharmacy completed the shift to cost-based reimbursement, gained script share (>29%) with same-store prescription and front-store growth, and expects retail earnings to be at least flat annually beginning in 2026.

CVS Health Stock Down 0.3%

Shares of NYSE:CVS opened at $75.54 on Wednesday. The company has a quick ratio of 0.63, a current ratio of 0.83 and a debt-to-equity ratio of 0.83. The firm has a market cap of $95.89 billion, a P/E ratio of 198.79, a P/E/G ratio of 0.70 and a beta of 0.50. CVS Health has a 12 month low of $54.06 and a 12 month high of $85.15. The company’s 50-day moving average price is $78.52 and its two-hundred day moving average price is $75.98.

CVS Health Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Monday, February 2nd. Investors of record on Thursday, January 22nd were given a dividend of $0.665 per share. The ex-dividend date was Thursday, January 22nd. This represents a $2.66 annualized dividend and a yield of 3.5%. CVS Health’s dividend payout ratio is 700.00%.

CVS Health News Roundup

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

• Positive Sentiment: Q4 revenue and adjusted EPS beat estimates (revenue $105.7B; adj. EPS $1.09), showing demand across pharmacy, PBM and insurance businesses. CVS Health beats quarterly profit expectations on pharmacy performance
• Positive Sentiment: CVS reported record full‑year 2025 revenue and highlighted operational wins (cost‑based reimbursement rollout, stronger PBM performance) that support its turnaround narrative. CVS HEALTH CORPORATION REPORTS FOURTH QUARTER AND FULL-YEAR 2025 RESULTS
• Positive Sentiment: Management and some commentators remain constructive on the turnaround (cost‑based pharmacy model, refocused operations); notable bullish commentary has surfaced from market pundits. Jim Cramer on CVS: “I Think It’s a Fascinating Time to Own the Stock”
• Neutral Sentiment: Company maintained its 2026 forecast in its release and commentary, signaling management confidence in execution while leaving room for upside. CVS Health keeps in place 2026 forecast, eyes topping it
• Negative Sentiment: Guidance and cash‑flow signals disappointed relative to Street expectations — management’s FY2026 EPS range was viewed as below consensus and pre‑market reaction showed selling pressure. CVS Beats on Q4 Earnings and Revenues but Shares Slide in Pre-Market
• Negative Sentiment: Medicare Advantage rate guidance for 2027 disappointed management and investors — CEO David Joyner called the rate notice “disappointing,” a direct threat to margins in the Medicare business. CVS Health CEO Joyner says ‘disappointing’ 2027 MA rate notice fails to match utilization trends
• Negative Sentiment: Management trimmed or flagged near‑term cash‑flow guidance in some disclosures, which raises questions about free‑cash‑flow conversion timing during the turnaround. CVS Health beats Q4 expectations, cash flow guidance lowered

Institutional Trading of CVS Health

Hedge funds and other institutional investors have recently modified their holdings of the stock. Caitong International Asset Management Co. Ltd lifted its holdings in CVS Health by 407.2% during the 3rd quarter. Caitong International Asset Management Co. Ltd now owns 350 shares of the pharmacy operator’s stock worth $26,000 after buying an additional 281 shares in the last quarter. Mpwm Advisory Solutions LLC boosted its holdings in CVS Health by 40.0% in the third quarter. Mpwm Advisory Solutions LLC now owns 700 shares of the pharmacy operator’s stock valued at $53,000 after acquiring an additional 200 shares during the last quarter. WFA of San Diego LLC bought a new stake in CVS Health during the 2nd quarter worth about $86,000. Sittner & Nelson LLC boosted its stake in shares of CVS Health by 164.7% in the 3rd quarter. Sittner & Nelson LLC now owns 1,607 shares of the pharmacy operator’s stock valued at $121,000 after purchasing an additional 1,000 shares during the last quarter. Finally, Johnson Financial Group Inc. grew its holdings in CVS Health by 94.9% during the 3rd quarter. Johnson Financial Group Inc. now owns 1,928 shares of the pharmacy operator’s stock worth $145,000 after acquiring an additional 939 shares during the period. Institutional investors and hedge funds own 80.66% of the company’s stock.

Analysts Set New Price Targets

A number of analysts recently weighed in on the stock. Weiss Ratings reissued a “hold (c-)” rating on shares of CVS Health in a research note on Monday, December 29th. Raymond James Financial upped their price objective on CVS Health from $75.00 to $90.00 in a research note on Friday, October 31st. Argus cut their target price on CVS Health from $91.00 to $90.00 and set a “buy” rating for the company in a research report on Wednesday, January 28th. Robert W. Baird upped their price target on CVS Health from $82.00 to $92.00 and gave the company an “outperform” rating in a research report on Wednesday, December 10th. Finally, Truist Financial set a $100.00 price objective on CVS Health in a research note on Wednesday, December 10th. Nineteen investment analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the stock. According to data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and a consensus price target of $94.82.

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.