CVS Health (NYSE:CVS) Issues Earnings Results, Beats Estimates By $0.09 EPS

CVS Health (NYSE:CVS) issued its quarterly earnings data on Tuesday. The pharmacy operator reported $1.09 earnings per share for the quarter, beating analysts’ consensus estimates of $1.00 by $0.09, FiscalAI reports. The company had revenue of $105.69 billion during the quarter, compared to analysts’ expectations of $103.67 billion. CVS Health had a return on equity of 11.45% and a net margin of 0.12%.The firm’s revenue for the quarter was up 8.2% on a year-over-year basis. During the same quarter in the previous year, the business earned $1.19 earnings per share. CVS Health updated its FY 2026 guidance to 5.940-6.140 EPS.

Here are the key takeaways from CVS Health’s conference call:

• Strong FY2025 financials — adjusted EPS of $6.75, operating cash flow of $10.6 billion, revenue >$400 billion, and management reaffirmed 2026 guidance of $7.00–$7.20 EPS and revenue of at least $400 billion.
• CVS says the 2027 Medicare Advantage Advanced Rate Notice is insufficient relative to medical cost trends, posing regulatory/rate risk to MA margins even as the company engages in advocacy and maintains its margin-recovery plan.
• Aetna momentum — a >$2.6 billion year-over-year improvement in adjusted operating income, leadership refresh and strong Stars ratings that management says support continued margin recovery toward targets.
• PBM and pharmacy progress — Caremark’s TrueCost and negotiation capabilities, plus 96% adoption of a Humira biosimilar (driving >$1.5 billion in client/member savings), underpin management’s view of durable PBM value and alignment with transparency legislation.
• Retail turnaround and integration — CVS Pharmacy completed the shift to cost-based reimbursement, gained script share (>29%) with same-store prescription and front-store growth, and expects retail earnings to be at least flat annually beginning in 2026.

CVS Health Stock Up 0.9%

Shares of CVS Health stock traded up $0.72 during trading hours on Tuesday, hitting $76.49. 5,299,044 shares of the company’s stock traded hands, compared to its average volume of 9,880,297. The company has a quick ratio of 0.63, a current ratio of 0.83 and a debt-to-equity ratio of 0.83. CVS Health has a twelve month low of $54.06 and a twelve month high of $85.15. The stock has a 50 day simple moving average of $78.56 and a 200-day simple moving average of $75.87. The company has a market cap of $97.10 billion, a PE ratio of 201.29, a PEG ratio of 0.72 and a beta of 0.50.

CVS Health Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Monday, February 2nd. Stockholders of record on Thursday, January 22nd were paid a dividend of $0.665 per share. The ex-dividend date was Thursday, January 22nd. This represents a $2.66 annualized dividend and a dividend yield of 3.5%. CVS Health’s dividend payout ratio (DPR) is currently 700.00%.

Key Headlines Impacting CVS Health

Here are the key news stories impacting CVS Health this week:

• Positive Sentiment: Q4 beat on both EPS and revenue: CVS reported adjusted EPS of $1.09 versus a $0.99 consensus and revenue of $105.7B, driven by higher prescription volume. CVS Health (CVS) Tops Q4 Earnings and Revenue Estimates
• Positive Sentiment: PBM and retail pharmacy strength: Reuters and other outlets cite pharmacy benefit management performance and strong retail script volumes as the main drivers of the beat. That supports operating recovery momentum. CVS Health beats quarterly profit expectations on pharmacy performance
• Positive Sentiment: Operational progress: Management completed a transition to cost‑based reimbursement across payors and highlighted Aetna prior‑authorization improvements, evidence the turnaround plan is executing. CVS HEALTH CORPORATION REPORTS FOURTH QUARTER AND FULL-YEAR 2025 RESULTS
• Neutral Sentiment: Company narrative mixed on guidance: several outlets note CVS “reaffirmed” its profit outlook/strategy progress, which soothes some investors but doesn’t fully offset other concerns. CVS tops quarterly estimates, reaffirms profit outlook as turnaround plan takes effect
• Negative Sentiment: FY‑2026 EPS range disappointed some investors: CVS set FY26 adjusted EPS guidance around 5.94–6.14, below some street expectations, creating a forward-earnings shortfall that is pressuring the stock. CVS Health drops despite Q4 beat amid in-line guidance
• Negative Sentiment: Cash‑flow/guidance nudges: reports indicate cash‑flow guidance was lowered or softened, which reduces near-term financial flexibility and heightened investor caution. CVS Health beats Q4 expectations, cash flow guidance lowered
• Negative Sentiment: Medicare policy risk: commentary from Barron’s and others highlights concern that proposed Medicare rate changes could pressure pharmacy/insurance margins, an overhang leading some investors to trim positions. CVS Stock Falls After Earnings Beat. Why Medicare Worries Persist.

Hedge Funds Weigh In On CVS Health

Several large investors have recently added to or reduced their stakes in CVS. Legacy Advisors LLC acquired a new position in CVS Health during the 3rd quarter worth $249,000. Resurgent Financial Advisors LLC acquired a new position in shares of CVS Health during the 3rd quarter worth about $215,000. PFG Advisors bought a new stake in shares of CVS Health in the third quarter valued at approximately $205,000. MUFG Securities EMEA plc acquired a new stake in CVS Health in the 2nd quarter worth $258,000. Finally, McIlrath & Eck LLC raised its position in shares of CVS Health by 422.9% during the second quarter. McIlrath & Eck LLC now owns 3,383 shares of the pharmacy operator’s stock valued at $233,000 after buying an additional 2,736 shares during the last quarter. 80.66% of the stock is currently owned by institutional investors.

Wall Street Analysts Forecast Growth

A number of research analysts recently weighed in on CVS shares. Bank of America dropped their price objective on CVS Health from $100.00 to $95.00 and set a “buy” rating on the stock in a report on Tuesday, January 27th. Argus reduced their price target on shares of CVS Health from $91.00 to $90.00 and set a “buy” rating for the company in a research report on Wednesday, January 28th. Robert W. Baird increased their price objective on shares of CVS Health from $82.00 to $92.00 and gave the company an “outperform” rating in a research note on Wednesday, December 10th. Wolfe Research upped their price target on shares of CVS Health from $85.00 to $100.00 and gave the company an “outperform” rating in a report on Monday, December 8th. Finally, Raymond James Financial lifted their price objective on CVS Health from $75.00 to $90.00 in a research report on Friday, October 31st. Nineteen investment analysts have rated the stock with a Buy rating and four have given a Hold rating to the stock. According to MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and a consensus price target of $94.82.

CVS Health Company Profile

CVS Health Corporation is a diversified healthcare company that operates a large network of retail pharmacies, pharmacy benefit management services and health care solutions. Headquartered in Woonsocket, Rhode Island, the company traces its roots to the early 1960s and has grown into an integrated provider of prescription drugs, over‑the‑counter products, clinical services and health insurance offerings. Its operating model combines retail pharmacy locations and in‑store clinics with broader pharmacy and health plan capabilities.

Key business activities include CVS Pharmacy retail operations, MinuteClinic walk‑in medical clinics and HealthHUB locations that offer expanded clinical services.