third quarter 2026
Filed Nov 4, 2026CVS HEALTH CORPORATION REPORTS THIRD QUARTER 2026 RESULTS AND RAISES FULL-YEAR 2026 GUIDANCE
Third-quarter revenue rose 5.4%, Adjusted EPS increased to $2.09 from $1.60, all operating segments increased adjusted operating income, and CVS raised full-year GAAP diluted EPS, Adjusted EPS and cash flow from operations guidance. The retail segment’s revenue declined 2.0%, while management retained a cautious view because of elevated cost trends and potential macro headwinds.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total revenues, three months ended September 30GAAP | $108.4B | – | 5.4% |
| Operating income (loss), three months ended September 30GAAP | $3.57B | – | – |
| Adjusted operating income, three months ended September 30non-GAAP | $4.19B | – | 21.2% |
| Net income (loss), three months ended September 30GAAP | $2.17B | – | – |
| Net income (loss) attributable to CVS Health, three months ended September 30GAAP | $2.17B | – | – |
| Diluted earnings (loss) per share, three months ended September 30GAAP | $1.68 | – | – |
| Adjusted EPS, three months ended September 30non-GAAP | $2.09 | – | $0.49 |
| Adjusted income attributable to CVS Health, three months ended September 30non-GAAP | $2.70B | – | – |
| Total revenues, nine months ended September 30GAAP | $314.9B | – | $18,547 million |
| Operating income, nine months ended September 30GAAP | $12.95B | – | $10,401 million |
| Adjusted operating income, nine months ended September 30non-GAAP | $14.50B | – | $2,655 million |
| Net income (loss), nine months ended September 30GAAP | $8.12B | – | $9,318 million |
| Net income (loss) attributable to CVS Health, nine months ended September 30GAAP | $8.09B | – | – |
| Diluted earnings (loss) per share, nine months ended September 30GAAP | $6.29 | – | $7.22 |
| Adjusted EPS, nine months ended September 30non-GAAP | $7.24 | – | $1.58 |
| Adjusted income attributable to CVS Health, nine months ended September 30non-GAAP | $9.31B | – | – |
| Health Care Benefits adjusted operating income, three months ended September 30non-GAAP | $912M | – | 190.4% |
| Health Care Benefits medical benefit ratio, three months ended September 30other | 91.3% | – | (150) bps |
| Health Care Benefits medical membership, September 30other | 26.12M | – | – |
| Health Care Benefits days claims payable, September 30other | 41.9 | 0.2 days | – |
| Health Services adjusted operating income, three months ended September 30non-GAAP | $2.11B | – | 2.7% |
| Health Services gross margin, three months ended September 30other | 5.4% | – | – |
| Health Services pharmacy claims processed, three months ended September 30other | 481.7M | – | 1.3% |
| Pharmacy & Consumer Wellness adjusted operating income, three months ended September 30non-GAAP | $1.64B | – | 10.6% |
| Pharmacy & Consumer Wellness gross margin, three months ended September 30other | 19.2% | – | – |
| Pharmacy & Consumer Wellness prescriptions filled, three months ended September 30other | 470M | – | 1.9% |
| Pharmacy & Consumer Wellness same store sales increase (decrease), three months ended September 30other | (0.6)% | – | – |
| Pharmacy & Consumer Wellness prescription volume, three months ended September 30other | 3.9% | – | – |
| Net cash provided by operating activities, nine months ended September 30GAAP | $15.32B | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Health Care BenefitsRevenue growth was primarily driven by an increase in the Government business, partially offset by a decline resulting from the Company’s exit of the individual exchange business in 2026. Improved underlying performance in the Government business drove adjusted operating income growth and the MBR decline. | $36.85B | – | 2.4% |
| Health ServicesRevenue growth was primarily driven by pharmacy drug mix and brand inflation, partially offset by continued pharmacy client price improvements. Adjusted operating income growth reflected improved purchasing economics and pharmacy drug mix, partly offset by pharmacy client price improvements. | $53.96B | – | 9.5% |
| Pharmacy & Consumer WellnessRevenue declined because of regulatory-related price reductions on certain drugs, recent generic drug introductions and pharmacy reimbursement pressure. Core pharmacy strength and contributions from Rite Aid asset acquisitions increased adjusted operating income. | $35.50B | – | (2.0)% |
Year Ending December 31, 2026 outlook
- RevenueAt least $420.0 billion
- NoteGAAP diluted EPS: At least $6.98
- NoteAdjusted EPS: At least $8.20
- NoteCash flow from operations: At least $15.5 billion
- NoteNet income attributable to CVS Health: $9,002 million
- NoteAdjusted income attributable to CVS Health: $10,571 million
- NoteWeighted average diluted shares outstanding: 1,289
- NoteAmortization of intangible assets: $1,730 million
- NoteNet realized capital losses: $26 million
- NoteAcquisition-related integration costs: $80 million
- NoteOmnicare guarantee: $193 million
- NoteTax impact of non-GAAP adjustments: $(460) million
Capital returns
- Dividends paid, nine months ended September 30, 2026: $2,578 million
- Dividends paid, nine months ended September 30, 2025: $2,552 million
What drove it
- Consolidated revenue increased 5.4% primarily driven by growth in the Health Services and Health Care Benefits segments.
- The absence of the $5.7 billion goodwill impairment charge related to the Health Care Delivery reporting unit recorded in the third quarter of 2025 supported the year-over-year swing to GAAP operating income and diluted EPS.
- Health Care Benefits adjusted operating income increased on improved underlying performance in the Government business.
- Health Services pharmacy claims processed increased 1.3% on a 30-day equivalent basis.
- Pharmacy & Consumer Wellness prescriptions filled increased 1.9% on a 30-day equivalent basis, driven by increased utilization and incremental volume from Rite Aid prescription file acquisitions.
- Prior years’ health care costs payable estimates developed favorably by $1.3 billion during the nine months ended September 30, 2026.
Concerns
- Pharmacy & Consumer Wellness revenue decreased 2.0%, reflecting regulatory-related drug price reductions, generic introductions and pharmacy reimbursement pressure.
- Health Services adjusted operating income increased 2.7%, while gross margin was 5.4% compared with 5.6% in the prior year.
- Management maintained a cautious view for the remainder of the year in light of continued elevated cost trends and the potential for macro headwinds.
- The third-quarter non-GAAP reconciliation includes a $193 million Omnicare guarantee related to an estimated contingent guarantee liability.
- Commercial premium revenues in Health Care Benefits were $6,461 million, compared with $7,771 million in the prior year.
What to watch
- Execution of the Health Care Benefits margin recovery plan and underlying performance in the Government business.
- Medical benefit ratio performance following the third-quarter 91.3% result.
- Pharmacy client price improvements, pharmacy reimbursement pressure, regulatory-related price reductions and generic drug introductions.
- The planned fourth-quarter 2026 sale of Omnicare’s assets and the associated Omnicare guarantee.
- Delivery against raised full-year guidance for at least $420.0 billion of revenue, at least $6.98 of GAAP diluted EPS, at least $8.20 of Adjusted EPS and at least $15.5 billion of cash flow from operations.
Balance sheet and cash flow
- Cash and cash equivalents as of September 30, 2026: $11,738 million
- Cash and cash equivalents as of December 31, 2025: $8,453 million
- Long-term debt as of September 30, 2026: $57,223 million
- Long-term debt as of December 31, 2025: $60,502 million
- Current portion of long-term debt as of September 30, 2026: $3,457 million
- Current portion of long-term debt as of December 31, 2025: $4,068 million
- Net cash provided by operating activities, nine months ended September 30, 2026: $15,318 million
- Net cash used in investing activities, nine months ended September 30, 2026: $(5,545) million
- Net cash used in financing activities, nine months ended September 30, 2026: $(6,537) million
- Purchases of property and equipment, nine months ended September 30, 2026: $(2,357) million
- Repayments of long-term debt, nine months ended September 30, 2026: $(4,057) million
- Cash, cash equivalents and restricted cash at the end of the period: $11,948 million
Analysis
CVS Health reported third-quarter total revenues of $108,399 million, up 5.4% from $102,871 million. Growth was led by Health Services, where revenue increased 9.5% to $53,964 million, and Health Care Benefits, where revenue increased 2.4% to $36,855 million. Pharmacy & Consumer Wellness revenue declined 2.0% to $35,498 million as regulatory-related drug price reductions, generic introductions and reimbursement pressure outweighed favorable pharmacy drug mix, prescription growth, Rite Aid contributions and brand inflation.
Profitability improved materially. GAAP operating income was $3,566 million versus a $3,207 million operating loss, and GAAP diluted EPS was $1.68 versus a loss per share of $3.13. The comparison includes the absence of a $5.7 billion goodwill impairment charge recorded in the third quarter of 2025. Underlying performance also improved: adjusted operating income increased 21.2% to $4,194 million and Adjusted EPS increased to $2.09 from $1.60.
Health Care Benefits was the principal source of the underlying earnings improvement. Its adjusted operating income increased to $912 million from $314 million, while MBR improved to 91.3% from 92.8%, driven by improved underlying performance in the Government business. Health Services adjusted operating income increased 2.7% to $2,106 million, although gross margin declined to 5.4% from 5.6%. Pharmacy & Consumer Wellness adjusted operating income increased 10.6% to $1,635 million despite the revenue decline, with gross margin improving to 19.2% from 18.1%.
Cash generation was strong through the first nine months. Net cash provided by operating activities was $15,318 million, compared with $7,249 million in the prior-year period. CVS reported $11,738 million of cash and cash equivalents at September 30, 2026, long-term debt of $57,223 million, $4,057 million of long-term debt repayments during the nine months, and $2,578 million of dividends paid.
Management raised full-year 2026 guidance to at least $420.0 billion of revenue, at least $6.98 of GAAP diluted EPS, at least $8.20 of Adjusted EPS and at least $15.5 billion of cash flow from operations. The company attributed the increases to Health Care Benefits and Pharmacy & Consumer Wellness, while retaining a cautious outlook because of elevated cost trends and potential macro headwinds. Investors should focus on the durability of Government business margin recovery, Health Services purchasing economics, and continued pressure on retail pharmacy revenue.
Management, verbatim
Our colleagues build trust every day through delivering quality health care rooted in our purpose - to simplify health care one person, one family and one community at a time. Through their continued dedication, each of our businesses delivered another quarter of strong results. We continue to advance our strategy by improving the consumer experience, lowering health care costs, and connecting care for the people we serve.
David Joyner, CVS Health Chairman and CEO
Not in the filing
stated, not guessed- Previous-release outlook was not provided, so comparison of reported results with prior guidance is unavailable.
- Free cash flow was not reported.
- Quarterly cash flow from operations was not reported.
- Share repurchases were not reported.
- A consolidated gross margin was not reported.
- A full-year 2026 gross margin, operating expense or tax-rate guidance was not reported.
- A quarterly effective income tax rate was not reported.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure is checked against the filing text, and a metric the filing does not print, or whose value, prior period and change do not add up, is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.