10-Q · August 5, 2026
CVS delivered a strong Q2 turnaround: revenue reached $106.096B, GAAP operating income rose 97.5% to $4.703B, and GAAP diluted EPS was $2.31. The primary driver was a sharp Health Care Benefits recovery, with a 250-bp…
Earnings analysis · 10-Q
CVS earnings analysis
Filed November 4, 2026 · Our reading of the company's report
The latest report
CVS reported third-quarter revenue of $108.399 billion and GAAP EPS of $1.68, exceeding consensus estimates of $104.764 billion and $1.64, respectively. Revenue increased approximately 6.0% year over year, adjusted EPS…
Read full summary
CVS reported third-quarter revenue of $108.399 billion and GAAP EPS of $1.68, exceeding consensus estimates of $104.764 billion and $1.64, respectively. Revenue increased approximately 6.0% year over year, adjusted EPS rose to $2.09 from $1.60, and Health Services revenue grew 9.5%, although GAAP EPS declined from $2.31 in the prior quarter. Management raised full-year 2026 GAAP EPS, adjusted EPS and operating cash flow targets, supporting a bullish trend despite high execution risk from the planned separation into two companies by the first half of 2028.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $1.68
- Segment
- Health Services revenue increased 9.5% year over year.
- Segment
- The planned healthcare solutions company will comprise Aetna, CVS Caremark, CVS Specialty, Oak Street Health and Signify Health; the planned retail pharmacy and community healthcare company will comprise retail pharmacy, mail pharmacy, MinuteClinic and Health100.
What stood out
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Revenue beat with 6.0% year-over-year growth
Third-quarter revenue was $108.399 billion, up approximately 2.8% from $105.45 billion in the prior quarter and approximately 6.0% from $102.24 billion a year earlier. Revenue exceeded the $104.764 billion consensus estimate.
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EPS beat estimates and recovered year over year
GAAP diluted EPS was $1.68 versus $2.31 in the prior quarter, but improved substantially from a $3.13 loss a year earlier. EPS exceeded the $1.64 consensus estimate.
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Health Services drove adjusted earnings growth
Adjusted EPS increased to $2.09 from $1.60 a year earlier, while Health Services revenue increased 9.5% year over year.
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Full-year earnings and cash guidance raised
Management raised full-year 2026 GAAP EPS to at least $6.98 from $6.84-$7.04, adjusted EPS to at least $8.20 from $7.90-$8.10, and operating cash flow to at least $15.5 billion from at least $11.5 billion.
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Share repurchases remained paused
CVS repurchased no shares during each of July, August and September 2026, while approximately $11.5 billion remained available under its repurchase authorizations at September 30, 2026.
What to watch
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Complex separation has significant execution risk
CVS announced an intention to separate into two independent publicly traded companies, with completion expected in the first half of 2028. The transaction remains subject to final Board approval, an effective Form 10 registration statement and customary tax-free treatment confirmation.
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Separation could disrupt operations
The proposed separation would create two companies and require significant management and employee attention, potentially disrupting ongoing operations and financial results. CVS states that timing and completion are uncertain and could be delayed or prevented by unmet closing conditions or required consents.
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Separation costs and benefits are uncertain
CVS warns that dis-synergy costs, restructuring transaction costs and other separation-related costs could exceed estimates, and that anticipated benefits may not be achieved within the expected time frame or at all.
Management's outlook
Full-year 2026 GAAP EPS guidance was raised to at least $6.98 from the prior $6.84-$7.04 range; adjusted EPS was raised to at least $8.20 from $7.90-$8.10, and operating cash flow was raised to at least $15.5 billion from at least $11.5 billion.
Earlier filings 4
10-Q · May 6, 2026
CVS Health reported Q1 2026 revenues of $100.4 billion and an EPS of $2.30, both above consensus estimates of $94.9 billion in revenue and $2.21 in EPS. The company raised its full-year GAAP EPS guidance from a range of…
10-K · February 10, 2026
CVS Health Corporation's 10-K filing for 2025 reveals a comprehensive review of their operational and financial health, highlighting a strategic pivot to enhance integrated health services and address challenges…
10-Q · October 29, 2025
CVS Health Corporation reported a total revenue of $102.87 billion for Q3 2025, marking a 7.8% increase from Q3 2024. However, the company posted a net loss of $3.98 billion, primarily due to a significant $5.7 billion…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.