CVS Health (CVS) Q3 2026 Earnings Report
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DE:CVS Q3 2026 EPS Results
- Actual EPS
- EUR 1.86
- Consensus EPS
- EUR 1.47
- Beat/Miss
- Beat by +EUR 0.39
- One Year Ago EPS
- EUR 1.42
DE:CVS Q3 2026 Revenue Results
- Actual Revenue
- EUR 96.32B
- Expected Revenue
- EUR 93.05B
- Beat/Miss
- Beat by +EUR 3.27B
- YoY Revenue Growth
- +5.36%
Earnings Announcement Details
- Quarter
- Q3 2026
- Date
- 11/04/2026
- Time
- Before Open
- Conference Call
- Wednesday, November 4, 2026
DE:CVS Upcoming Earnings
CVS Health's next earnings date is estimated for February 17, 2027, based on past reporting schedules.
Q3 2026 Earnings Call Audio
DE:CVS Q3 2026 Earnings Call
0:00 / 0:00
Q3 2026 Earnings Slide Deck
Q3 2026 Earnings Call Summary
Earnings Call Sentiment|Positive
The call was strongly positive. CVS Health reported broad-based third-quarter earnings growth, raised 2026 revenue, adjusted EPS, operating income and cash flow guidance, achieved its leverage goal ahead of schedule and expects to resume share repurchases. Management also presented improving Medicare performance, continued pharmacy growth and a favorable longer-term outlook. The principal challenges were elevated medical cost trends, expected 2027 pressure from 340B and lower Caremark membership, and costs associated with the planned separation, but management characterized these items as manageable and described 2027 as a trough year for Health Services.
Company Guidance
For full-year 2026, CVS Health raised adjusted earnings per share guidance to at least $8.20 from the prior range of $7.90 to $8.10, expects total revenues of at least $420 billion, Health Care Benefits adjusted operating income of at least $5.4 billion, medical benefit ratio in the lower half of our previously discussed range of 89.75% plus or minus 25-basis-points, Pharmacy and Consumer Wellness adjusted operating income of $6.5 billion, and enterprise adjusted operating income of at least $17.05 billion; cash flow from operations is expected to be at least $15.5 billion, more than $5.5 billion above the initial outlook, while 2027 Health Services adjusted operating income is expected to be at least $7 billion, Pharmacy and Consumer Wellness adjusted operating income is expected to grow low single digits off our current 2026 guidance of $6.5 billion, adjusted EPS is expected to be at least $8.65, reflecting approximately 13% growth off an adjusted 2026 baseline, and the company now believes it will be in the high end of our mid-teens adjusted EPS CAGR through 2028.
- Planned Separation into Two Public CompaniesCVS Health announced its intention to separate into two independent publicly traded companies: a healthcare solutions company retaining Aetna, Caremark, Pharmacy Services, Specialty Pharmacy, Oak Street and Signify Health, and CVS Pharmacy, comprising retail pharmacy stores, mail order, MinuteClinic and Health 100. The separation is expected to be tax-free for U.S. federal income tax purposes and completed in the first half of 2028, subject to customary conditions.
- Strong Third-Quarter Enterprise ResultsCVS Health generated over $108 billion of revenue, nearly $4.2 billion of adjusted operating income and adjusted EPS of $2.09 in the third quarter. Adjusted EPS increased by over 30% from the prior-year quarter, with earnings growth across all operating segments.
- Higher 2026 Earnings and Cash Flow OutlookFull-year 2026 adjusted EPS guidance was raised to at least $8.20 from the prior range of $7.90 to $8.10. The company said this is more than $1 above its initial 2026 expectations. Cash flow from operations guidance was raised to at least $15.5 billion, more than $5.5 billion above the initial outlook.
- Raised Revenue and Operating Income GuidanceCVS Health now expects 2026 total revenue of at least $420 billion and enterprise adjusted operating income of at least $17.05 billion. Health Care Benefits adjusted operating income guidance increased by $200 million to at least $5.4 billion, while Pharmacy and Consumer Wellness guidance increased by $100 million to $6.5 billion, representing nearly 8% growth from the prior year.
- Health Care Benefits Margin RecoveryHealth Care Benefits delivered third-quarter adjusted operating income of $900 million, an increase of nearly $600 million from the prior-year quarter. The medical benefit ratio was 91.3%, an improvement of approximately 150 basis points, primarily driven by improved underlying performance in Medicare.
- Medicare Advantage ProgressMedicare performance modestly exceeded expectations due to pockets of favorability from strong medical cost management and disciplined pricing. Medicare Advantage is moving into profitable territory in 2026, approximately 75% of the group Medicare Advantage book is expected to be repriced by 2027, and the company expects another year of margin improvement with modest growth.
- Health Services Performance and 2027 Earnings FloorHealth Services generated adjusted operating income of $2.1 billion, an increase of nearly 3% from the prior-year quarter, primarily driven by improved purchasing economics and pharmacy drug mix. For 2027, the company expects Health Services adjusted operating income of at least $7 billion, supported by continued specialty strength and another year of improvement in healthcare delivery.
- Pharmacy and Consumer Wellness GrowthPharmacy and Consumer Wellness delivered more than $1.6 billion of adjusted operating income, an increase of over 10% from the prior-year quarter. Core pharmacy strength included a nearly 4% increase in same-store prescription volumes.
- Improved Cash Generation and Balance SheetThird-quarter cash flow from operations was approximately $4.7 billion, bringing year-to-date cash flow from operations to $15.3 billion. CVS Health ended the quarter with $6 billion of cash at the parent and unrestricted subsidiaries, achieved its leverage goal ahead of schedule and returned $2.6 billion to shareholders through dividends year to date.
- Share Repurchases Expected to ResumeThe company expects to resume its share repurchase program in the fourth quarter after strengthening its balance sheet and reaching its target leverage ahead of schedule. Management said it does not expect the separation to prevent future capital deployment.
- Positive 2027 EPS and Longer-Term OutlookCVS Health expects at least $8.65 of adjusted EPS in 2027, representing approximately 13% growth from an adjusted 2026 baseline. Management said it now expects to be at the high end of its mid-teens adjusted EPS CAGR through 2028.
- Pharmacy Segment Expected to Continue GrowingPharmacy and Consumer Wellness adjusted operating income is expected to grow by low single digits in 2027 from the current 2026 guidance of $6.5 billion, driven by continued pharmacy strength. This would mark the third consecutive year of earnings growth for the segment.
- Retail Technology and Workforce InvestmentsAI now supports pharmacy workflow for 85% of prescriptions. CVS Pharmacy highlighted its approximately 30,000 pharmacists and 200,000 store colleagues as key components of local healthcare delivery, alongside continued investments in technology, colleague enablement and customer experience.
- Prescription and GLP-1 Volume GrowthRetail comparable prescriptions grew 3.9% in the quarter, while GLP-1 prescriptions grew 23%. Management attributed the GLP-1 growth to actions that made access more affordable and easier for patients.
- Retail Expansion OpportunityCVS Pharmacy expects to leverage its 9,000 stores and community footprint to offer incremental healthcare services and standardize healthcare services across communities.
- Caremark Commercial MomentumCaremark achieved approximately $6 billion of gross new wins in the 2026 selling season. Management expressed confidence in the 2028 selling season and said the new-business pipeline remains robust.
- Specialty Pharmacy Investment and Strategic RoleCVS Health plans to retain specialty pharmacy because specialty costs remain an important affordability challenge and the PBM-specialty combination supports competition and value creation for payer partners. The company continues to invest in technology and AI to improve specialty patient and consumer experiences.
- Technology and Health 100 StrategyCVS Health has expanded technology capabilities and is embedding AI throughout its businesses. Health 100, described as an AI-native consumer engagement platform, is intended to serve as the connective tissue between the two companies, improve interoperability, remove friction and act as the front door of health and care.
- Scale and Market OpportunitiesThe remaining CVS Health healthcare solutions company will address a stated $2+ trillion growing market across Medicare, commercial and Medicaid. CVS Pharmacy will operate in a stated greater-than-$500 billion market and retain its position as a frequent consumer touch point in healthcare.
- Operating Model and Leadership ReadinessManagement said both companies are expected to have experienced leadership teams, solid investment-grade capital structures and strong free cash flow generation. David Joyner will lead the remaining CVS Health company, while Prem Shah will become CEO of CVS Pharmacy upon separation.
- 340B and Membership Headwinds in 2027Health Services 2027 expectations include a year-over-year decline in the 340B business, lower Caremark membership and headwinds from a less robust selling season and health plan client membership attrition. Management expects the 340B business to largely stabilize by the end of 2027 and views 2027 as trough earnings for the segment.
- Elevated Medical Cost TrendsMedical cost trends remain elevated and above historical industry levels, although management said they were broadly in line with expectations. Aetna described the environment as still high-trend and said the Medicare business remains on a multiyear journey toward target margins.
- Offsets in Health Services and Retail ResultsHealth Services results were partially offset by continued pharmacy client price improvements. Pharmacy and Consumer Wellness results were partially offset by continued business investments and the impact of consumer dynamics.
- Separation-Related CostsManagement said the separation will involve some one-time costs as well as potential stranded or public-company costs. These costs have been contemplated in the guidance and were described as manageable, but the company has not yet provided detailed amounts.
DE:CVS Earnings History
| Report Date | Fiscal Quarter | Forecast / EPS | Last Year's EPS | EPS YoY Change | Press Release |
|---|---|---|---|---|---|
| Feb 17, 2027 | 2026 (Q4) | 1.07- | 0.97 | ― | ― |
| Nov 04, 2026 | 2026 (Q3) | 1.471.86 | 1.42 | 30.63% (+0.44) | |
| Aug 05, 2026 | 2026 (Q2) | 1.652.29 | 1.61 | 42.54% (+0.68) | |
| May 06, 2026 | 2026 (Q1) | 1.942.28 | 2 | 14.22% (+0.28) | |
| Feb 10, 2026 | 2025 (Q4) | 0.890.97 | 1.06 | -8.40% (-0.09) | |
| Oct 29, 2025 | 2025 (Q3) | 1.211.42 | 0.97 | 46.79% (+0.45) | |
| Jul 31, 2025 | 2025 (Q2) | 1.301.61 | 1.63 | -1.09% (-0.02) | |
| May 01, 2025 | 2025 (Q1) | 1.512.00 | 1.16 | 71.76% (+0.84) | |
| Feb 12, 2025 | 2024 (Q4) | 0.811.06 | 1.88 | -43.87% (-0.83) | |
| Nov 06, 2024 | 2024 (Q3) | 1.280.97 | 1.96 | -50.68% (-1.00) |
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat Missed
