Company Reports

CVS reported second-quarter results including 7% revenue growth and over 40% adjusted earnings per share growth to $2.58, or above FactSet consensus of $1.85. On these stronger-than-expected results, management raised its 2026 outlook. It also gave initial 2027 commentary.

CVS aims to be the most trusted health company in the United States. It has spent over a decade positioning itself as a managed care leader, with the acquisitions of pharmacy benefit manager Caremark (2007), insurance provider Aetna (2018), and healthcare service provider Oak Street Health (2023) defining its strategic direction. CVS' top-tier retail pharmacy, health insurer, and PBM franchises create the potential to improve health outcomes and even bend the healthcare cost curve for its clients, especially if it can align incentives through its healthcare service operations.

CVS reported first-quarter results that included 6% revenue growth, 12% adjusted operating income growth, and adjusted EPS growth of 14%. Management also raised its guidance for the full year. Shares rallied over 6% in midday trading May 6 on this news.

CVS aims to be the most trusted health company in the United States. It has spent over a decade positioning itself as a managed care leader, with the acquisitions of pharmacy benefit manager Caremark (2007), insurance provider Aetna (2018), and healthcare service provider Oak Street Health (2023) defining its strategic direction. CVS' top-tier retail pharmacy, health insurer, and PBM franchises create the potential to improve health outcomes and even bend the healthcare cost curve for its clients, especially if it can align incentives through its healthcare service operations.

After hours on April 6, the Centers for Medicare & Medicaid Services released its final rate notice for the 2027 Medicare Advantage program, which included a 2.5% overall increase, compared with a flat initial rate notice in late January.

CVS aims to be the most trusted health company in the United States. It has spent over a decade positioning itself as a managed care leader, with the acquisitions of pharmacy benefit manager Caremark (2007), insurance provider Aetna (2018), and healthcare service provider Oak Street Health (2023) defining its strategic direction. CVS' top-tier retail pharmacy, health insurer, and PBM franchises create the potential to improve health outcomes and even bend the healthcare cost curve for its clients, especially if it can align incentives through its healthcare service operations.

In the fourth quarter, CVS turned in 8% sales growth and 8% adjusted EPS decline, or slightly higher than consensus. The firm largely confirmed targets given at its December investor day, too, albeit trimming its operating cash flow outlook to $9 billion from $10 billion after a big beat in 2025.

After hours on Jan. 26, the Centers for Medicare & Medicaid Services released its initial rate notice for the 2027 Medicare Advantage program, which included a flat overall rate increase rather than the 5% increase in 2026. Most of that differential is related to new risk assessment-related changes.

CVS highlighted several financial goals at its Dec. 9 analyst day, causing the shares to rise about 3%. For 2025, it increased its earnings per share guidance range by a nickel to $6.60-$6.70. For 2026, it expects adjusted EPS of $7.00-$7.20. It aims for midteens earnings growth through 2028.

CVS aims to be the most trusted health company in the United States. It has spent over a decade positioning itself as a managed care leader, with the acquisitions of pharmacy benefit manager Caremark (2007), insurance provider Aetna (2018), and healthcare service provider Oak Street Health (2023) defining its strategic direction. CVS' top-tier retail pharmacy, health insurer, and PBM franchises create the potential to improve health outcomes and even bend the healthcare cost curve for its clients, especially if it can align incentives by owning healthcare service providers, as well.

On Nov. 9, the US Senate agreed to terms that would reopen the US federal government after a record shutdown period. However, the solution did not include a plan to extend federal subsidies on the individual exchanges.

CVS' third-quarter results included 8% revenue growth and 47% adjusted EPS growth, as margins improved at its medical insurer from a very weak 2024. Those results led to a third consecutive guidance increase for 2025, and management gave an initial outlook for midteens adjusted EPS growth in 2026.

In the second quarter, CVS turned in 8% revenue growth, 2% adjusted operating profit growth, and roughly flat adjusted earnings per share of $1.81. Management increased its 2025 adjusted EPS outlook to $6.30-$6.40 from $6.00-$6.20 and its operating cash flow estimate by 7%.

CVS aims to be the most customer-centric health company in the United States. It has spent over a decade positioning itself as a managed care leader, with the acquisitions of pharmacy benefit manager Caremark (2007), insurance provider Aetna (2018), and healthcare service provider Oak Street Health (2023) defining its strategic direction. CVS' top-tier retail pharmacy, health insurer, and PBM franchises create the potential to improve health outcomes and even bend the healthcare cost curve for its clients, especially if it can align incentives by owning healthcare service providers, as well.

On May 11 and 12, Republicans revealed updated regulatory stances that included plans to lower drug prices and pull back on Medicaid spending by about $715 billion over the next 10 years versus $880 billion expected previously.

In the quarter, CVS delivered 7% revenue and 71% adjusted EPS growth, showing progress in Medicare Advantage after a weak prior-year period. For 2025, management raised its adjusted EPS guidance to $6.00-$6.20 from $5.75-$6.00 previously and operating cash flow guidance by $500 million.

Over the past week, tariff-related news has created significant volatility in the US market, including in medical services-related firms like managed care organizations, caregivers, and medical suppliers.

Late on April 7, the Centers for Medicare and Medicaid Services released its final reimbursement rate notice for Medicare Advantage, highlighting an expected change in per capita revenue of 5.06% in 2026 even after risk-related adjustments. This is up from 2.23% in the January initial rate notice.

CVS aims to be the most customer-centric health company in the United States and has spent over a decade positioning itself as a managed care leader, with the acquisitions of pharmacy benefit manager Caremark (2007), insurance provider Aetna (2018), and healthcare service provider Oak Street (2023) defining its strategic direction. CVS' top-tier retail pharmacy, health insurer, and PBM franchises create the potential to improve health outcomes and even bend the healthcare cost curve for its clients, especially if it can align incentives by owning healthcare service providers, as well.

CVS Health turned in solid fourth-quarter results, and its 2025 guidance for 6%-11% adjusted EPS growth without any share repurchase activity appeared to relieve the market. Shares rose in the midteens on a percentage basis in early trading on this news.