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CVS Health Corporation
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S&P 500
$117.0B
Market Cap
57.0
P/E
0.76
PEG
5.5%
ROCE
2.3%
ROE
1.06
D/E
2.5%
OPM
-16.0%
% from 52W High
61
α RS
🔍 CVS is showing a sector-leadership setup because Sector RRG has Health Care in the Leading quadrant with the trail still strengthening, RS Rating is 61, and it's within 16% of its 52-week high. Net: Broad signal stack, not a recommendation. ? RRG RS Rating 52W High
Sources
Health Care in Leading quadrant · RS Rating 61 · 16% from 52W high
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🌏 Global Investor Returns
Currency-adjusted total returns for CVS including FX impact
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📈 Price History
Ratio Health
— Excellent
— Good
— Average
— Poor
By Category
📊 Peer Medians
About

CVS Health Corporation provides health solutions in the United States. The Health Care Benefits segment offers traditional, voluntary, and consumer-directed health insurance products and related services, including medical, pharmacy, dental, and behavioral health plans; medical management capabilities; Medicare Advantage and Medicare Supplement plans; prescription drug plans (PDPs); and Medicaid health care management services. It serves employer groups, individuals, college students, part-time and hourly workers, health plans, health care providers, governmental units, government-sponsored plans, labor groups, and expatriates. The Health Services segment offers pharmacy benefit management solutions, including plan design and administration, formulary management, retail pharmacy network management, specialty and mail-order pharmacy, clinical services, disease management, medical spend management services, and pharmacy and other administrative services. It serves employers, insurance companies, unions, government employee groups, health plans, PDPs, Medicaid managed care plans, CMS, plans offered on public health insurance exchanges, and other sponsors of health benefit plans. The Pharmacy & Consumer Wellness segment sells prescription and over-the-counter drugs, consumer health and beauty products, personal care products, and other general merchandise products. This segment also distributes prescription drugs; and provides related pharmacy consulting and other ancillary services to care facilities and other care settings. It operates online retail pharmacy websites, retail specialty pharmacy stores, and compounding pharmacies, as well as branches for infusion and enteral nutrition services. The company was formerly known as CVS Caremark Corporation and changed its name to CVS Health Corporation in September 2014. CVS Health Corporation was founded in 1963 and is headquartered in Woonsocket, Rhode Island.

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📈 Growth Pattern
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⭐ Superinvestors Holding CVS
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Manager Shares Value % of Fund Period
Jim Simons Renaissance Technologies LLC 263.2K $18.9M 0.03% Mar 2026

SEC Form 13F data. 45-day lag from quarter end.

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Good quarter Investor Presentation One-Pager? Q2 2026
Revenue
$106.1B
+7.3% YoY
Operating Income
$4.7B
+97.5% YoY
Operating Margin
4.4%
+2.0pp YoY
Net Income
$3.0B
+195.7% YoY
What Went Right
  • Adjusted EPS of $2.58 beat expectations and rose over 40% YoY, with all segments growing earnings.
  • Health Care Benefits adjusted operating income jumped 85.5% to $2.4B on margin recovery and an MBR improvement of 250bps to 87.4%.
  • Full-year Adjusted EPS guidance raised by $0.60 to $7.90-$8.10 and cash flow outlook increased by $2B to at least $11.5B.
  • Pharmacy & Consumer Wellness delivered strong performance, with same-store script volumes up 7%.
What to Watch
  • 340B manufacturer restrictions are creating a headwind that is expected to continue into 2027.
  • Caremark membership is expected to decline in 2027 due to transition to lowest net cost pricing and health plan market exits.
  • No Surprises Act independent dispute resolution is being abused by a small group of providers, adding to commercial cost trend.
  • Medical cost trends remain elevated, prompting a cautious second-half outlook despite the raise.
Management Guidance
  • Full-year 2026 Adjusted EPS raised to $7.90-$8.10 (from $7.30-$7.50); GAAP EPS to $6.84-$7.04.
  • Full-year 2026 revenue: at least $414 billion.
  • Full-year 2026 cash flow from operations: at least $11.5 billion.
  • Preliminary 2027 Adjusted EPS: at least $8.44, consistent with current consensus.
Investor Lens
The thesis is stronger after this report: the company delivered a broad-based beat, raised 2026 guidance, and continues to execute well on Aetna margin recovery. Cash flow is also improving, with $10.6 billion generated in the first half and a $2 billion hike to full-year cash flow guidance. However, management flagged clear 2027 PBM headwinds — 340B pressure and Caremark membership declines — which temper the outlook. Still, the company reaffirmed its mid-teens adjusted EPS CAGR through 2028, suggesting the long-term recovery story remains intact.
From investor presentation · AI-generated analysis · Not investment advice
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📈 STRONG Q2 beat strong, EPS $2.58, guidance raised
Revenue
Total revenues increased 7.3% year-over-year to $106.1 billion, helped by growth across all segments. Health Services revenue grew 11% to nearly $52 billion, Health Care Benefits rose 3.5% to $37.5 billion, and Pharmacy & Consumer Wellness was up slightly to nearly $34 billion.
Profitability
Net income surged 195.7% to $2,995 million from $1,013 million in the prior year, while adjusted EPS rose 42.5% to $2.58. Adjusted operating income increased 35.4% to $5.2 billion, with all three operating segments contributing to the growth.
Margins
The Health Care Benefits MBR improved 250 basis points to 87.4% in the quarter, driven by margin recovery actions and favorable prior year development. Enterprise operating margin expanded to roughly 4.4% from 2.4% a year ago, reflecting strong operational performance across the segments.
Balance Sheet
Year-to-date cash flow from operations reached $10.6 billion, and the company ended the quarter with about $2.7 billion in cash at the parent and unrestricted subsidiaries. Leverage improved to approximately 3.5x, and no share repurchases are assumed in the 2026 outlook.
Key Risks
Management flagged continued 340B pressure from manufacturer restrictions, expected Caremark membership declines in 2027, elevated medical cost trends, and provider abuse of the No Surprises Act dispute resolution process.
Outlook
For full-year 2026, adjusted EPS guidance was raised to $7.90-$8.10 on revenue of at least $414 billion and cash flow from operations of at least $11.5 billion. Management also provided a preliminary 2027 adjusted EPS outlook of at least $8.44, implying roughly 13% growth off an adjusted baseline of $7.46.
Generated by AI · Q2 2026 results · Not investment advice
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✓ 📞 Earnings Call Transcripts (5 quarters) submit a missing quarter
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📞 Earnings Call Transcripts (5)
Q2 2026 Q2 2026 2026-08-05
Q2 2026 saw broad-based revenue and earnings growth, with adjusted EPS up 40% and all segments outperforming. Full-year guidance was raised for EPS and cash flow, driven by strong pharmacy, health services, and benefits results, despite ongoing 340B and reimbursement headwinds.
Q1 2026 Q1 2026 2026-05-06
Q1 2026 saw strong revenue and earnings growth, with adjusted EPS up 14% and full-year guidance raised. Segment performance was robust, especially in Health Care Benefits and value-based care, while investments in technology and regulatory adaptation remain key priorities.
Q4 2025 Q4 2025 2026-02-10
Full year 2025 revenue exceeded $400 billion with strong EPS and cash flow, driven by robust performance across all segments and successful integration of Rite Aid assets. 2026 guidance is reaffirmed, with continued focus on margin recovery, operational excellence, and technology investment.
Q3 2025 Q3 2025 2025-10-29
Q3 saw record revenue and strong EPS growth, prompting a raised full-year outlook. All segments contributed, with notable gains in pharmacy and consumer wellness, but a $5.7B goodwill impairment was recorded in healthcare delivery. 2026 guidance anticipates mid-teens EPS growth.
Q2 2025 Q2 2025 2025-07-31
Q2 2025 saw strong revenue and earnings growth, with adjusted EPS guidance raised to $6.30-$6.40. Healthcare benefits and pharmacy segments outperformed, while Healthcare delivery faced margin pressure from Oak Street. The company remains focused on innovation, cost management, and disciplined capital allocation.
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Financial Model
Projections are built from each company's audited annual financials (Income Statement, Balance Sheet, Cash Flow) over the last 5 fiscal years. Forward assumptions — revenue growth %, EBITDA margin, D&A (USD millions), interest expense, tax rate, and capex — are AI-generated using historical context and refreshed twice a year: after the December results season and after the September/Q4 results season.

DCF Valuation
Fair Value = Σ(FCFt / (1+WACC)t) + Terminal Value. Terminal Value uses the Gordon Growth Model: FCF5 × (1+g) / (WACC−g). Default WACC: 10% (US risk-free ~4.5%, equity risk premium ~5.5%). Default terminal growth: 3% (long-run US nominal GDP proxy).

CAGR Tracker
Expected 5-year CAGR = (DCF Fair Value / Current Price)1/5 − 1. Assumes fair value is reached in exactly 5 years — a mechanical estimate only.

Data Sources & Limitations
Financial statements sourced from public filings. Prices updated daily. Forward assumptions are AI-generated. All monetary values in USD millions. Non-US ADR companies may have currency conversion inaccuracies. Models are point-in-time and do not update intra-quarter or account for M&A, macro shocks, or extraordinary items.

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