CVS Health Corp. (NYSE:CVS) reported sales of $105.69 billion, beating the consensus of $103.59 billion on Tuesday.
Adjusted earnings of $1.09 per share also beat the analyst estimate of 99 cents, decreased from $1.19 in the prior year.
CVS Health reaffirmed its fiscal 2026 adjusted earnings guidance of $7.00-$7.20 per share versus the Street consensus of $7.17. The company said the guidance highlights our strong position for 2026.
The company updated its cash flow from operations guidance to at least $9.0 billion from at least $10.0 billion.
CVS sees fiscal 2026 revenue of at least $400 billion versus the consensus of $409.77 billion, with adjusted operating income of between $15.07–$15.41 billion.
Analyst View
Given investor fears around Medicare Advantage headwinds in 2027 and increased scrutiny in the pharmacy benefit manager regulatory environment, Bank of America Securities (BofA) views the reiteration of the 2026 guide as a positive.
Within Pharmacy & Consumer Wellness, the Rite Aid file buys, and industry challenges among peers support flat earnings growth in the near term.
In Health Care Benefits, group Medicare Advantage rate renewals represent low-hanging fruit to improve margins and are further supported by margin progress in Individual Medicare Advantage.
Analyst Allen Lutz on Wednesday wrote that CVS has multiple levers to offset headwinds from the 2027 preliminary rate notice, including out-year share repo and additional Group Medicare Advantage repricing.
Finally, in Health Services, BofA expects continued margin improvement in Oak Street as clinic closures, fewer new openings, and growing patient panels support a path toward break-even.
Overall, BofA sees multiple levers in place to drive CVS’s enterprise growth and remains positive on the long-term strategy. The analyst reiterates the Buy rating with a price forecast of $95.
CVS Price Action: CVS Health shares were up 0.87% at $76.36 at the time of publication on Wednesday, according to Benzinga Pro data.
Photo via Shutterstock
Recent Comments