CVS Raises Forecast on Health Care Benefits, Pharmacy Gains

By Freddy Sebastian

CVS Health raised its full-year guidance on gains in its health-care benefits and pharmacy segments, but said it remains cautious amid high costs and potential macroeconomic headwinds.

The outlook comes after the company said Tuesday that it plans to split in two, with one company housing its insurance giant Aetna and pharmacy-benefit manager Caremark, and the other its 9,000 retail pharmacies.

CVS said the breakup, slated for early 2028, will enable the two separate management teams to focus more on their respective businesses and be more agile, The Wall Street Journal reported.

For the current fiscal year, the company on Wednesday said it now expects adjusted earnings of at least $8.20 a share, up from its previous forecast of between $7.90 and $8.10 a share. Analysts polled by FactSet anticipate adjusted earnings of $8.05 a share.

CVS also said it now projects revenue of at least $420 billion for the year, compared with its previous forecast of at least $414 billion. Wall Street is modeling for revenue of $417.7 billion.

"Each of our businesses delivered another quarter of strong results," Chief Executive David Joyner said. "We continue to advance our strategy by improving the consumer experience, lowering health care costs, and connecting care for the people we serve."

For the three months ended Sept. 30, CVS reported net income of $2.2 billion, or $1.68 a share, compared with a loss of about $4 billion, or $3.13 a share, in the year-earlier period, when it booked a $5.7 billion impairment charge.

Stripping out one-time items, adjusted earnings were $2.09 a share, handily beating estimates of $1.65 a share, according to FactSet.

Total revenue climbed over 5% to $108.4 billion from $102.9 billion, driven by growth in its health services and health care benefits segments. Analysts had anticipated revenue of $104.7 billion.

In the health-care benefits segment, revenue rose 2.4% to $36.9 billion, driven by an increase in the government business. Health services revenue rose 9.5% to nearly $54 billion, and pharmacy and consumer wellness revenue declined 2% to $35.5 billion. Adjusted operating income in its pharmacy and consumer wellness segment, however, climbed over 10% to $1.6 billion, primarily driven by core pharmacy strength and contributions from its Rite Aid asset acquisitions.

Write to Freddy Sebastian at freddy.sebastian@wsj.com

(END) Dow Jones Newswires

November 04, 2026 06:45 ET (11:45 GMT)