CVS Health (NYSE:CVS) Posts Quarterly Earnings Results, Beats Estimates By $0.44 EPS

CVS Health (NYSE:CVS) released its earnings results on Wednesday. The pharmacy operator reported $2.09 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.65 by $0.44, FiscalAI reports. The firm had revenue of $108.40 billion for the quarter, compared to the consensus estimate of $104.69 billion. CVS Health had a return on equity of 13.12% and a net margin of 1.18%. The firm’s revenue was up 5.4% on a year-over-year basis. During the same period in the prior year, the firm earned $1.60 EPS.

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

• CVS reported Q3 adjusted EPS of $2.09, up more than 30% year over year, and raised its 2026 adjusted EPS outlook to at least $8.20 and cash flow from operations outlook to at least $15.5 billion.
• Aetna’s adjusted operating income rose to about $900 million, with its medical benefit ratio improving to 91.3%; management said Medicare Advantage is expected to return to profitability in 2026 and deliver further margin improvement in 2027. Pharmacy and Consumer Wellness operating income also rose more than 10%, supported by prescription volume growth.
• CVS expects Health Services adjusted operating income of at least $7 billion in 2027, while identifying declines in 340B and health-plan client membership as headwinds. Management called 2027 a trough year for the segment, with a return to growth expected afterward.
• CVS plans to separate into a health solutions company retaining Aetna, Caremark, specialty pharmacy, and care delivery, and a retail pharmacy and community healthcare company. The tax-free separation is targeted for the first half of 2028; management said both companies should have investment-grade balance sheets and that commercial agreements will preserve key offerings.
• Management set a 2027 adjusted EPS floor of $8.65 and said it expects to reach the high end of its mid-teens adjusted EPS growth range through 2028. The outlook assumes share repurchases offset dilution, but does not include an added contribution from buybacks.

CVS Health Stock Performance

Shares of NYSE CVS traded down $11.51 during trading on Wednesday, reaching $79.90. 34,175,770 shares of the company traded hands, compared to its average volume of 8,436,812. The firm’s fifty day simple moving average is $91.08 and its 200 day simple moving average is $88.87. The stock has a market cap of $102.19 billion, a P/E ratio of 21.14, a PEG ratio of 0.82 and a beta of 0.58. CVS Health has a 12-month low of $69.51 and a 12-month high of $110.68. The company has a current ratio of 0.87, a quick ratio of 0.66 and a debt-to-equity ratio of 0.74.

CVS Health Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Monday, November 2nd. Shareholders of record on Thursday, October 22nd were given a dividend of $0.6650 per share. This represents a $2.66 annualized dividend and a yield of 3.3%. The ex-dividend date of this dividend was Thursday, October 22nd. CVS Health’s dividend payout ratio (DPR) is currently 70.37%.

More CVS Health News

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

• Positive Sentiment: CVS reported third-quarter adjusted EPS of $2.09, ahead of the $1.65 analyst consensus, while revenue rose 5.4% year over year to $108.4 billion. The company raised its 2026 adjusted EPS outlook to at least $8.20 and operating cash-flow forecast to at least $15.5 billion. CVS Q3 results and guidance
• Neutral Sentiment: CVS plans to separate its retail pharmacy business from its insurance and pharmacy-benefit operations, including Aetna and Caremark, by the first half of 2028. Analysts see a potential benefit in giving the businesses greater focus, but the outcome will depend on execution and how the standalone companies are structured. CVS breakup analysis
• Negative Sentiment: The planned split appears to be weighing on the stock: investors may be concerned about the complexity of unwinding CVS’s integrated business, the long timeline, and how debt and costs will be allocated. The market reaction overshadowed the earnings beat and raised outlook. Market reaction to CVS split plan

Wall Street Analyst Weigh In

A number of research analysts have recently weighed in on CVS shares. Piper Sandler set a $112.00 price objective on CVS Health in a report on Wednesday, September 9th. JPMorgan Chase & Co. raised their price objective on CVS Health from $111.00 to $118.00 and gave the stock an “overweight” rating in a research note on Wednesday, August 12th. Barclays lifted their target price on CVS Health from $106.00 to $108.00 and gave the stock an “overweight” rating in a report on Thursday, August 6th. Robert W. Baird set a $107.00 target price on CVS Health in a research report on Thursday, August 6th. Finally, Truist Financial increased their price target on shares of CVS Health from $108.00 to $118.00 and gave the stock a “buy” rating in a report on Tuesday, July 14th. Twenty-one investment analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company. According to MarketBeat, the stock currently has an average rating of “Moderate Buy” and a consensus price target of $109.74.

About CVS Health

CVS Health Corporation (NYSE: CVS) is a diversified health care company that provides pharmacy, insurance and health services in the United States. Its businesses serve consumers, employers, health plans and health care providers through pharmacies, benefit programs, insurance coverage and clinical care services.

The company’s Pharmacy Services segment, led by CVS Caremark, manages prescription drug benefits for employers, insurers and government programs. CVS Pharmacy operates retail pharmacies and health-focused stores that dispense prescriptions and offer over-the-counter products, health and wellness merchandise, immunizations and related services.