CVS Health Corp.
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Range $92 – $123
Price Chart
About the company
CVS Health Corp. is a health solutions company, which engages in the provision of healthcare services. It operates through the following segments: Health Care Benefits, Health Services, Pharmacy and Consumer Wellness, and Corporate and Other.
- CEO
- J. David Joyner
- IPO
- 1973
- Employees
- 259,500
- HQ
- Woonsocket, RI, US
AI snapshot
Six angles, distilled from the data.
CVS is in a recovery phase after a long reset from its 52-week high, but it still trades below its 200-day average. The stock sits much closer to the lower end of its yearly range than the peak, which keeps the multi-month trend constructive but not fully repaired.
Street sentiment stays positive: the consensus is Buy, with a $111.2 target versus a recent close of $87.85. Recent action has been mostly reiterations and modest target resets, including UBS, Cantor Fitzgerald, Piper Sandler, and Bernstein, which suggests steady conviction rather than a fresh upgrade wave.
The earnings backdrop is strong: CVS has beaten EPS in 7 of the last 7 reported quarters, including a 38.0% beat in the latest completed quarter. Next-quarter expectations are still rising, with 2027 EPS estimates at 8.51428 and 2030 EPS at 11.75, so shareholders should watch whether margin and cash flow momentum holds.
The pattern is net selling, led by large discretionary sales from director Larry Robbins and additional sales from director Fernando Aguirre. Several officer transactions were automatic F-InKind events and award grants, which are less informative; the clear signal is that insider activity has leaned negative over recent months.
Profitability is modest but stable, with a 3.86% operating margin, 1.18% net margin, and 6.21% ROE. Growth is improving too, with revenue up 7.1% year over year and EPS growth of 188.8%, while free cash flow reached $13.471 billion and FCF yield was 11.99%.
CVS looks inexpensive relative to its cash generation, trading at 11.11x earnings with a $111.2 consensus target. In healthcare services, that valuation leaves room if execution stays firm, but the balance sheet remains heavy with $93.593 billion of total debt and negative net cash.
Similar companies
Peers in the same neighborhood.
- Market Cap
- $109.67B
- P/E
- 22.45
- Fwd P/E
- 10.71
- PEG
- 3.51
- P/S
- 0.26
- P/B
- 1.38
- EV/EBITDA
- 13.03
- Div Yield
- 3.09%
- Gross Margin
- 14.15%
- Op Margin
- 2.00%
- Net Margin
- 1.18%
- ROE
- 6.43%
- ROIC
- 4.09%
Latest fiscal year · YoY change
- Revenue
- $402.07B+7.8%
- Gross Profit
- $55.36B+7.7%
- Op Income
- $10.38B
- Net Income
- $1.77B-61.7%
- EPS
- $1.40-61.7%
- OCF Growth
- +16.8%
- FCF Growth
- +23.4%
- 52W High
- $110.68
- 52W Low
- $69.51
- 50D MA
- $94.49
- 200D MA
- $87.73
- Beta
- 0.58
- RSI (14)
- 36
- Avg Volume
- 7.82M
Earnings call summaries
Pick a quarter — each call distilled into takeaways, results, and a bull vs bear read.
CVS Health reported a strong second quarter, beat expectations across all segments, and raised full-year 2026 EPS and cash flow guidance on broad-based improvement in benefits, services and retail.· August 5, 2026
- Adjusted operating income was $5.2 billion and adjusted EPS was $2.58, both ahead of expectations; revenue topped $106 billion and rose more than 7% year over year.
- The company raised full-year 2026 adjusted EPS guidance to $7.90-$8.10, up $0.60, and lifted cash flow from operations guidance to at least $11.5 billion.
- Health Care Benefits improved sharply, with about $2.4 billion of adjusted operating income and an 87.4% medical benefit ratio; management said core performance exceeded expectations.
- Health Services revenue was nearly $52 billion with adjusted operating income of over $1.7 billion; Caremark saw 340B pressure, but broader performance offset it.
- Pharmacy and Consumer Wellness posted nearly $34 billion of revenue and nearly $1.5 billion of adjusted operating income, with same-store pharmacy sales up about 3% and same-store prescription volumes up 7%.
CVS Health generated over $106 billion of revenue in the quarter, up more than 7% year over year, and approximately $5.2 billion of adjusted operating income, up 35%. Adjusted EPS was $2.58, more than 40% above the prior year quarter. By segment, Health Care Benefits revenue was over $37 billion with adjusted operating income of about $2.4 billion and an 87.4% medical benefit ratio; Health Services revenue was nearly $52 billion with adjusted operating income of over $1.7 billion; and Pharmacy and Consumer Wellness revenue was nearly $34 billion with adjusted operating income of nearly $1.5 billion. For 2026, CVS raised adjusted EPS guidance to $7.90-$8.10, increased total revenue guidance to at least $414 billion, lifted Health Care Benefits adjusted operating income guidance to $5.03 billion-$5.37 billion, raised Pharmacy and Consumer Wellness adjusted operating income guidance to at least $6.4 billion, reiterated Health Services outlook, and increased cash flow from operations guidance to at least $11.5 billion.
David Joyner framed the quarter as evidence that CVS is delivering on a multi-year turnaround across the enterprise, saying each operating segment grew earnings and exceeded expectations. He emphasized CVS's strategy of simplifying access to care, using technology and AI to reduce friction for consumers and providers, and leveraging GLP-1, pharmacy, and care delivery assets together. His tone was confident and constructive, repeatedly highlighting momentum, trust-building, and the company's ability to capture opportunities regardless of how consumers access care.
Brian Newman highlighted broad-based year-over-year improvement: revenue above $106 billion, adjusted operating income of about $5.2 billion, adjusted EPS of $2.58, and year-to-date operating cash flow of approximately $10.6 billion. He pointed to stronger Health Care Benefits results, including about $2.4 billion of adjusted operating income and an 87.4% MBR, and said the company remained confident in reserves; he also noted Health Services benefited from drug mix and purchasing economics, while PCW saw core pharmacy strength despite reimbursement pressure. On capital allocation, he said the company returned over $1.7 billion in dividends year to date, ended with about $2.7 billion of cash at the parent and unrestricted subsidiaries, carried leverage of about 3.5x, and is assuming no share repurchases this year beyond offsetting dilution.
Analysts pressed on the 2027 outlook, especially 340B pressure, Caremark membership declines, Medicare Advantage bids, Part D, retail sustainability, and the pace of technology investments. Management said 2027 commentary was pulled forward because of known headwinds, but reiterated confidence in mid-teens EPS CAGR through 2028 and said a floor of at least $8.44 for 2027 EPS appeared reasonable versus current consensus. On 340B, executives said manufacturer restrictions and some specialty-drug genericization are creating pressure, but specialty pharmacy, generic penetration, and biosimilar efforts such as Cordavis can offset some of it; on retail, they said CostVantage, better service, and script growth above market should support a more consistent margin profile. Management also said Medicare MA is ahead of expectations, Part D is in line, and AI/technology investments are already improving claims processing, prior auth, pharmacist time and provider experience.
The bullish case from the call is that CVS is showing durable multi-segment execution: benefits margins improved, services grew strongly, and retail kept gaining momentum. Management also sounded increasingly confident that technology, AI, specialty pharmacy, GLP-1 offerings and CostVantage can support earnings and customer relevance over time.
The main risks discussed were a 340B headwind in Health Services, lower Caremark membership in 2027 tied to pricing discipline and health plan actions, and ongoing pressure from elevated medical cost trends. Management also acknowledged reimbursement pressure in retail, dynamic regulatory and manufacturer changes in GLP-1 and 340B, and that some technology and investment payoffs are still early and will take time to fully show up.
AI summary of the company's earnings call · Paraphrased · Not investment advice
- Free Float
- 99.8%
- Shares Outstanding
- 1.28B
- Float Shares
- 1.27B
of shares held by institutions
1,967 13F filers
Buy/sell ratio 0.60. Sells can include pre-scheduled 10b5-1 plan sales, not just discretionary selling.
Congressional trading
Senate and House stock disclosures for CVS, newest first.
| Member | Type | Traded | |
|---|---|---|---|
| Thomas Hawley TubervilleSenate · AL | Sell | Aug 26, 24 | Filing → |
| Alan ArmstrongSenate | Buy | Mar 27, 26 | Filing → |
| Ro KhannaHouse · CA17 | Buy | Jun 2, 26 | Filing → |
| Ro KhannaHouse · CA17 | Buy | May 1, 26 | Filing → |
| Dwight EvansHouse · PA03 | Sell | Nov 21, 25 | Filing → |
| Ro KhannaHouse · CA17 | Buy | Apr 13, 26 | Filing → |
| John BoozmanSenate · AR | Buy | Jan 29, 26 | Filing → |
| Michael T. McCaulHouse · TX10 | Sell | Jan 13, 26 | Filing → |
| Ro KhannaHouse · CA17 | Sell | Jan 29, 26 | Filing → |
| Julia LetlowHouse · LA05 | Buy | Oct 25, 24 | Filing → |
| Julia LetlowHouse · LA05 | Sell | Dec 11, 24 | Filing → |
| Dwight EvansHouse · PA03 | Sell | Nov 21, 25 | Filing → |
| Lisa C. McClainHouse · MI09 | Sell | Oct 31, 25 | Filing → |
| Lisa C. McClainHouse · MI09 | Sell | Oct 30, 25 | Filing → |
Source: public STOCK Act disclosures. Filed weeks after the trade — a lagging signal, not a real-time one.
Top institutional holders
Largest 13F positions, with quarter-over-quarter change.
| Holder | Shares | Δ Quarter |
|---|---|---|
| Blackrock, Inc. | 123.22M | ▼ 2.70M |
| Vanguard Group Inc | 120.71M | ▲ 1.82M |
| Vanguard Capital Management LLC | 83.32M | ▲ 665.29K |
| Capital World Investors | 74.95M | ▼ 2.30M |
| State Street Corp | 60.28M | ▲ 961.23K |
| Dodge & Cox | 50.01M | ▼ 1.77M |
| Wellington Management Group Llp | 33.80M | ▲ 11.23M |
| Geode Capital Management, LLC | 29.90M | ▲ 440.61K |
| Fmr LLC | 28.92M | ▼ 2.28M |
| Vanguard Portfolio Management LLC | 26.64M | ▲ 639.91K |
| Capital Research Global Investors | 24.33M | ▲ 4.32M |
| Price T Rowe Associates Inc | 24.20M | ▲ 420.74K |
Held by 2,156 ETFs
Biggest fund positions in CVS by dollar value.
Recent insider transactions
Who's buying, who's selling, and how much.
| Date | Insider | Type | Shares |
|---|---|---|---|
| Jun 26, 26 | Clark James David | other | 454 |
| May 31, 26 | Newman Brian | other | 2,478 |
| May 31, 26 | Compton-Phillips Amy | other | 7,618 |
| May 20, 26 | AGUIRRE FERNANDO | sell | 30,437 |
| May 21, 26 | AGUIRRE FERNANDO | sell | 1,563 |
| May 19, 26 | ROBBINS LARRY | sell | 1,983,387 |
| May 19, 26 | ROBBINS LARRY | sell | 151 |
| May 20, 26 | ROBBINS LARRY | sell | 797,628 |
| May 20, 26 | ROBBINS LARRY | sell | 152,691 |
| May 20, 26 | ROBBINS LARRY | sell | 66,881 |
A “Sell” may be a pre-scheduled 10b5-1 plan sale rather than a discretionary decision — read insider selling with that in mind.
Our CVS coverage
Recent articles, reports, and earnings notes.
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AI analysis · Last refreshed September 29, 2026 · Live quote · Not investment advice