CVS HEALTH CORPORATION REPORTS STRONG FIRST QUARTER 2026 RESULTS AND RAISES FULL-YEAR 2026 GUIDANCE
WOONSOCKET, R.I., May 6, 2026 /PRNewswire/ -- CVS Health Corporation (NYSE: CVS) today announced operating results for the three months ended March 31, 2026.
"CVS Health continues to provide what people want most from health care: a connected, convenient, cost-effective engagement experience across our unique collection of businesses. We build trust every day in communities across the country by providing better access, affordability and care to nearly 185 million people. Our positive performance is driven by strong execution across our enterprise. We will continue to build momentum through delivering on our strategy and a steadfast focus on our purpose - to simplify health care one person, one family and one community at a time."
- David Joyner, CVS Health Chairman and CEO
Three Months Ended
March 31,
Year Ending
December 31,
In billions, except per share amounts
2026
2025
2026 Projected
Total revenues
$ 100.4
$ 94.6
At least $405.0
Diluted earnings per share
$ 2.30
$ 1.41
$6.24-$6.44
Adjusted EPS (2)
$ 2.57
$ 2.25
$7.30-$7.50
Cash flow from operations
$ 4.2
$ 4.6
At least $9.5
First quarter GAAP diluted EPS of $2.30 increased from $1.41 in the prior year. Adjusted EPS of $2.57 increased from $2.25 in the prior year, primarily due to improved adjusted operating income in the Health Care Benefits segment, reflecting continued execution on the Health Care Benefits segment margin recovery plan.
The Company is increasing its full-year 2026 GAAP diluted EPS, Adjusted EPS and cash flow from operations guidance to reflect increases in the Health Care Benefits and Pharmacy & Consumer Wellness segments, while maintaining a cautious view for the remainder of the year in light of continued elevated cost trends and the potential for macro headwinds.
Consolidated first quarter results
Three Months Ended
March 31,
In millions, except per share amounts
2026
2025
Change
Total revenues
$ 100,426
$ 94,588
$ 5,838
Operating income
4,680
3,374
1,306
Adjusted operating income (1)
5,150
4,579
571
Net income
2,957
1,782
1,175
Diluted earnings per share
$ 2.30
$ 1.41
$ 0.89
Adjusted EPS (2)
$ 2.57
$ 2.25
$ 0.32
For the three months ended March 31, 2026 compared to the prior year:
Operational Updates
Health Care Benefits segment
The Health Care Benefits segment offers a full range of insured and self-insured ("ASC") medical, pharmacy, dental and behavioral health products and services. The segment results for the three months ended March 31, 2026 and 2025 were as follows:
Three Months Ended
March 31,
In millions, except percentages
2026
2025
Change
Total revenues
$ 35,971
$ 34,810
$ 1,161
Adjusted operating income (1)
3,041
1,993
1,048
Medical benefit ratio ("MBR") (3)
84.6 %
87.3 %
(2.7) %
Medical membership (4)
26.0
27.1
(1.1)
Health Services segment
The Health Services segment provides a full range of pharmacy benefit management solutions, delivers health care services in its medical clinics, virtually, and in the home, and offers provider enablement solutions. The segment results for the three months ended March 31, 2026 and 2025 were as follows:
Three Months Ended
March 31,
In millions
2026
2025
Change
Total revenues
$ 48,237
$ 43,462
$ 4,775
Adjusted operating income (1)
1,489
1,603
(114)
Pharmacy claims processed (5) (6)
464.7
464.2
0.5
Pharmacy & Consumer Wellness segment
The Pharmacy & Consumer Wellness segment dispenses prescriptions in its retail pharmacies and through its infusion operations, provides ancillary pharmacy services including pharmacy patient care programs and vaccination administration, and sells a wide assortment of health and wellness products and general merchandise. The segment also provides pharmacy fulfillment services to support the Health Services segment's specialty and mail order pharmacy offerings. The segment results for the three months ended March 31, 2026 and 2025 were as follows:
Three Months Ended
March 31,
In millions
2026
2025
Change
Total revenues
$ 31,989
$ 31,912
$ 77
Adjusted operating income (1)
1,197
1,313
(116)
Prescriptions filled (5) (6)
451.2
435.5
15.7
About CVS Health
CVS Health is a leading health solutions company simplifying health care one person, one family and one community at a time. As of March 31, 2026, the Company had approximately 9,000 retail pharmacy locations, more than 1,000 walk-in and primary care medical clinics and a leading pharmacy benefits manager with approximately 88 million plan members. The Company also serves an estimated more than 37 million people through a broad range of health insurance products and related services. The Company's integrated model uses personalized, technology driven services to connect people to simply better health, increasing access to quality care, delivering better outcomes, and lowering overall costs.
Teleconference and Webcast
The Company will be holding a conference call today for investors at 8:00 a.m. (Eastern Time) to discuss its first quarter results. An audio webcast of the call will be broadcast simultaneously for all interested parties through the Investor Relations section of the CVS Health website at http://investors.cvshealth.com. This webcast will be archived and available on the website for a one-year period following the conference call.
Non-GAAP Financial Information
The Company presents both GAAP and non-GAAP financial measures in this press release to assist in the comparison of the Company's past financial performance with its current financial performance. See "Non-GAAP Financial Information" beginning on page 10 and endnotes beginning on page 19 for explanations of non-GAAP financial measures presented in this press release. See pages 12 through 13 and page 18 for reconciliations of each non-GAAP financial measure used in this release to the most directly comparable GAAP financial measure.
Cautionary Statement Concerning Forward-looking Statements
The Private Securities Litigation Reform Act of 1995 provides a safe harbor for forward-looking statements made by or on behalf of CVS Health Corporation. Statements in this press release that are forward-looking include, but are not limited to, the full-year 2026 guidance information, Mr. Joyner's quotation and the information included in the reconciliations and endnotes. By their nature, all forward-looking statements are not guarantees of future performance or results and are subject to risks and uncertainties that are difficult to predict and/or quantify. Actual results may differ materially from those contemplated by the forward-looking statements due to the risks and uncertainties described in our Securities and Exchange Commission ("SEC") filings, including those set forth in the Risk Factors section and under the heading "Cautionary Statement Concerning Forward-Looking Statements" in our most recently filed Annual Report on Form 10-K, our Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2026 and our Current Reports on Form 8-K.
You are cautioned not to place undue reliance on CVS Health's forward-looking statements. CVS Health's forward-looking statements are and will be based upon management's then-current views and assumptions regarding future events and operating performance, and are applicable only as of the dates of such statements. CVS Health does not assume any duty to update or revise forward-looking statements, whether as a result of new information, future events, uncertainties or otherwise.
- Tables Follow -
CVS HEALTH CORPORATION
Condensed Consolidated Statements of Operations
(Unaudited)
Three Months Ended
March 31,
In millions, except per share amounts
2026
2025
Revenues:
Products
$ 62,226
$ 57,669
Premiums
33,791
32,820
Services
3,835
3,579
Net investment income
574
520
Total revenues
100,426
94,588
Operating costs:
Cost of products sold
55,444
51,057
Health care costs
29,358
29,135
Operating expenses
10,944
11,022
Total operating costs
95,746
91,214
Operating income
4,680
3,374
Interest expense
(774)
(785)
Other income
32
28
Income before income tax provision
3,938
2,617
Income tax provision
981
835
Net income
2,957
1,782
Net income attributable to noncontrolling interests
(14)
(3)
Net income attributable to CVS Health
$ 2,943
$ 1,779
Net income per share attributable to CVS Health:
Basic
$ 2.31
$ 1.41
Diluted
$ 2.30
$ 1.41
Weighted average shares outstanding:
Basic
1,273
1,261
Diluted
1,279
1,264
CVS HEALTH CORPORATION
Condensed Consolidated Balance Sheets
(Unaudited)
In millions
March 31,
2026
December 31,
2025
Assets:
Cash and cash equivalents
$ 9,542
$ 8,453
Investments
2,260
2,145
Accounts receivable, net
40,992
39,779
Inventories
17,770
19,246
Other current assets
4,253
5,091
Total current assets
74,817
74,714
Long-term investments
32,407
32,669
Property and equipment, net
13,037
13,083
Operating lease right-of-use assets
14,741
14,973
Goodwill
85,478
85,478
Intangible assets, net
25,070
25,508
Other assets
7,424
7,113
Total assets
$ 252,974
$ 253,538
Liabilities:
Accounts payable
$ 16,922
$ 17,641
Pharmacy claims and discounts payable
26,149
26,344
Health care costs payable
15,518
15,399
Accrued expenses and other current liabilities
22,258
22,387
Other insurance liabilities
1,075
1,116
Current portion of operating lease liabilities
1,904
1,737
Current portion of long-term debt
2,580
4,068
Total current liabilities
86,406
88,692
Long-term operating lease liabilities
13,330
13,643
Long-term debt
60,531
60,502
Deferred income taxes
3,771
3,832
Other long-term insurance liabilities
4,592
4,716
Other long-term liabilities
6,707
6,771
Total liabilities
175,337
178,156
Shareholders' equity:
Preferred stock
—
—
Common stock and capital surplus
50,679
50,402
Treasury stock
(36,706)
(36,790)
Retained earnings
63,282
61,196
Accumulated other comprehensive income
201
406
Total CVS Health shareholders' equity
77,456
75,214
Noncontrolling interests
181
168
Total shareholders' equity
77,637
75,382
Total liabilities and shareholders' equity
$ 252,974
$ 253,538
CVS HEALTH CORPORATION
Condensed Consolidated Statements of Cash Flows
(Unaudited)
Three Months Ended
March 31,
In millions
2026
2025
Cash flows from operating activities:
Reconciliation of net income to net cash provided by operating activities:
Net income
$ 2,957
$ 1,782
Adjustments required to reconcile net income to net cash provided by operating activities:
Depreciation and amortization
1,115
1,154
Stock-based compensation
266
126
Loss on sale of subsidiary
—
236
Deferred income taxes and other items
(91)
(169)
Change in operating assets and liabilities
2
1,427
Net cash provided by operating activities
4,249
4,556
Cash flows from investing activities:
Proceeds from sales and maturities of investments
4,159
3,534
Purchases of investments
(4,186)
(3,552)
Purchases of property and equipment
(849)
(743)
Acquisitions
(5)
(20)
Other
7
19
Net cash used in investing activities
(874)
(762)
Cash flows from financing activities:
Commercial paper borrowings (repayments), net
—
(859)
Repayments of long-term debt
(1,518)
(743)
Dividends paid
(847)
(840)
Proceeds from exercise of stock options
103
144
Payments for taxes related to net share settlement of equity awards
(9)
(11)
Other
(47)
(23)
Net cash used in financing activities
(2,318)
(2,332)
Net increase in cash, cash equivalents and restricted cash
1,057
1,462
Cash, cash equivalents and restricted cash at the beginning of the period
8,712
8,884
Cash, cash equivalents and restricted cash at the end of the period
$ 9,769
$ 10,346
Non-GAAP Financial Information
The Company uses non-GAAP financial measures to analyze underlying business performance and trends. The Company believes that providing these non-GAAP financial measures enhances the Company's and investors' ability to compare the Company's past financial performance with its current and expected future performance. These non-GAAP financial measures, which are included in this press release and which may be referred to on the conference call discussing the Company's first quarter financial results, are provided as supplemental information to the financial measures presented in this press release and discussed on the conference call that are calculated and presented in accordance with GAAP. Non-GAAP financial measures should not be considered a substitute for, or superior to, financial measures determined or calculated in accordance with GAAP. The Company's definitions of its non-GAAP financial measures may not be comparable to similarly titled measures reported by other companies.
Non-GAAP financial measures such as consolidated adjusted operating income, adjusted earnings per share ("EPS") and adjusted income attributable to CVS Health exclude from the relevant GAAP metrics, as applicable: amortization of intangible assets, net realized capital gains or losses and other items, if any, that neither relate to the ordinary course of the Company's business nor reflect the Company's underlying business performance.
For the periods covered in this press release, the following items are excluded from the non-GAAP financial measures described above, as applicable, because the Company believes they neither relate to the ordinary course of the Company's business nor reflect the Company's underlying business performance:
See endnotes (1) and (2) on page 19 for definitions of non-GAAP financial measures. Reconciliations of each non-GAAP financial measure to the most directly comparable GAAP financial measure are presented on pages 12 through 13 and page 18.
Reconciliations of Non-GAAP Financial Measures to the Most Directly Comparable GAAP Financial Measures
Adjusted Operating Income
(Unaudited)
The following are reconciliations of consolidated operating income (GAAP measure) to consolidated adjusted operating income, as well as reconciliations of segment GAAP operating income (loss) to segment adjusted operating income (loss):
Three Months Ended March 31, 2026
In millions
Health Care
Benefits
Health
Services
Pharmacy &
Consumer
Wellness
Corporate/
Other
Consolidated
Totals
Operating income (loss) (GAAP measure)
$ 2,806
$ 1,347
$ 1,134
$ (607)
$ 4,680
Amortization of intangible assets
236
142
63
1
442
Net realized capital (gains) losses
(1)
—
—
17
16
Acquisition-related integration costs
—
—
—
12
12
Adjusted operating income (loss) (1)
$ 3,041
$ 1,489
$ 1,197
$ (577)
$ 5,150
Three Months Ended March 31, 2025
In millions
Health
Care
Benefits
Health
Services
Pharmacy &
Consumer
Wellness
Corporate/
Other
Consolidated
Totals
Operating income (loss) (GAAP measure)
$ 1,674
$ 1,227
$ 864
$ (391)
$ 3,374
Amortization of intangible assets
294
144
60
1
499
Net realized capital (gains) losses
21
(15)
—
15
21
Acquisition-related integration costs
—
—
—
45
45
Legacy litigation charge
—
—
387
—
387
Loss on Accountable Care assets
—
247
—
—
247
Office real estate optimization charges
4
—
2
—
6
Adjusted operating income (loss) (1)
$ 1,993
$ 1,603
$ 1,313
$ (330)
$ 4,579
Adjusted Earnings Per Share
(Unaudited)
The following are reconciliations of net income attributable to CVS Health to adjusted income attributable to CVS Health and calculations of GAAP diluted EPS and Adjusted EPS:
Three Months Ended
March 31, 2026
Three Months Ended
March 31, 2025
In millions, except per share amounts
Total
Company
Per
Common
Share
Total
Company
Per
Common
Share
Net income attributable to CVS Health (GAAP measure)
$ 2,943
$ 2.30
$ 1,779
$ 1.41
Amortization of intangible assets
442
0.35
499
0.39
Net realized capital losses
16
0.01
21
0.02
Acquisition-related integration costs
12
0.01
45
0.04
Legacy litigation charge
—
—
387
0.30
Loss on Accountable Care assets
—
—
247
0.19
Office real estate optimization charges
—
—
6
0.01
Tax impact of non-GAAP adjustments
(121)
(0.10)
(140)
(0.11)
Adjusted income attributable to CVS Health (2)
$ 3,292
$ 2.57
$ 2,844
$ 2.25
Weighted average diluted shares outstanding
1,279
1,264
Supplemental Information
(Unaudited)
The following are reconciliations of financial measures of the Company's segments to the consolidated totals:
In millions
Health Care
Benefits
Health
Services
Pharmacy &
Consumer
Wellness
Corporate/
Other
Intersegment
Eliminations (a)
Consolidated
Totals
Three Months Ended
March 31, 2026
Total revenues
$ 35,971
$ 48,237
$ 31,989
$ 126
$ (15,897)
$ 100,426
Adjusted operating income (loss) (1)
3,041
1,489
1,197
(577)
—
5,150
March 31, 2025
Total revenues
$ 34,810
$ 43,462
$ 31,912
$ 133
$ (15,729)
$ 94,588
Adjusted operating income (loss) (1)
1,993
1,603
1,313
(330)
—
4,579
_____________________________________________
(a)
Intersegment revenue eliminations relate to intersegment revenue generating activities that occur between the Health Care Benefits segment, the Health Services segment, and/or the Pharmacy & Consumer Wellness segment.
Supplemental Information
(Unaudited)
Health Care Benefits segment
The following table summarizes the Health Care Benefits segment's performance for the respective periods:
Three Months Ended
March 31,
Change
In millions, except percentages and basis points ("bps")
2026
2025
$
%
Revenues:
Premiums
$ 33,792
$ 32,808
$ 984
3.0 %
Services
1,717
1,615
102
6.3 %
Net investment income
462
387
75
19.4 %
Total revenues
35,971
34,810
1,161
3.3 %
Health care costs
28,579
28,637
(58)
(0.2) %
MBR (Health care costs as a % of premium revenues) (3)
84.6 %
87.3 %
(270)
bps
Operating expenses
$ 4,586
$ 4,499
$ 87
1.9 %
Operating expenses as a % of total revenues
12.7 %
12.9 %
Operating income
$ 2,806
$ 1,674
$ 1,132
67.6 %
Operating income as a % of total revenues
7.8 %
4.8 %
Adjusted operating income (1)
$ 3,041
$ 1,993
$ 1,048
52.6 %
Adjusted operating income as a % of total revenues
8.5 %
5.7 %
Premium revenues (by business):
Government
$ 27,783
$ 24,902
$ 2,881
11.6 %
Commercial
6,009
7,906
(1,897)
(24.0) %
The following table summarizes the Health Care Benefits segment's medical membership for the respective periods:
March 31, 2026
December 31, 2025
March 31, 2025
In thousands
Insured
ASC
Total
Insured
ASC
Total
Insured
ASC
Total
Medical membership: (4)
Commercial
2,462
15,872
18,334
3,447
15,350
18,797
3,961
15,250
19,211
Medicare Advantage
4,175
—
4,175
4,267
—
4,267
4,220
—
4,220
Medicare Supplement
1,192
—
1,192
1,202
—
1,202
1,253
—
1,253
Medicaid
1,938
366
2,304
1,952
373
2,325
1,983
412
2,395
Total medical membership
9,767
16,238
26,005
10,868
15,723
26,591
11,417
15,662
27,079
Supplemental membership information:
Medicare Prescription Drug Plan (stand-alone)
3,889
4,041
4,094
The following table summarizes the Health Care Benefits segment's days claims payable for the respective periods:
March 31, 2026
December 31, 2025
March 31, 2025
Days Claims Payable (7)
42.9
38.9
43.2
Supplemental Information
(Unaudited)
Health Services segment
The following table summarizes the Health Services segment's performance for the respective periods:
Three Months Ended
March 31,
Change
In millions, except percentages
2026
2025
$
%
Revenues:
Products
$ 45,726
$ 41,135
$ 4,591
11.2 %
Services
2,511
2,313
198
8.6 %
Net investment income
—
14
(14)
(100.0) %
Total revenues
48,237
43,462
4,775
11.0 %
Cost of products sold
44,719
40,115
4,604
11.5 %
Health care costs
1,302
1,047
255
24.4 %
Gross profit (8)
2,216
2,300
(84)
(3.7) %
Gross margin (Gross profit as a % of total revenues) (8)
4.6 %
5.3 %
Operating expenses
$ 869
$ 1,073
$ (204)
(19.0) %
Operating expenses as a % of total revenues
1.8 %
2.5 %
Operating income
$ 1,347
$ 1,227
$ 120
9.8 %
Operating income as a % of total revenues
2.8 %
2.8 %
Adjusted operating income (1)
$ 1,489
$ 1,603
$ (114)
(7.1) %
Adjusted operating income as a % of total revenues
3.1 %
3.7 %
Pharmacy claims processed (5) (6)
464.7
464.2
0.5
0.1 %
Supplemental Information
(Unaudited)
Pharmacy & Consumer Wellness segment
The following table summarizes the Pharmacy & Consumer Wellness segment's performance for the respective periods:
Three Months Ended
March 31,
Change
In millions, except percentages
2026
2025
$
%
Revenues:
Products
$ 31,339
$ 31,285
$ 54
0.2 %
Services
650
627
23
3.7 %
Total revenues
31,989
31,912
77
0.2 %
Cost of products sold
25,790
25,804
(14)
(0.1) %
Gross profit (8)
6,199
6,108
91
1.5 %
Gross margin (Gross profit as a % of total revenues) (8)
19.4 %
19.1 %
Operating expenses
$ 5,065
$ 5,244
$ (179)
(3.4) %
Operating expenses as a % of total revenues
15.8 %
16.4 %
Operating income
$ 1,134
$ 864
$ 270
31.3 %
Operating income as a % of total revenues
3.5 %
2.7 %
Adjusted operating income (1)
$ 1,197
$ 1,313
$ (116)
(8.8) %
Adjusted operating income as a % of total revenues
3.7 %
4.1 %
Revenues (by major goods/service lines):
Pharmacy
$ 26,123
$ 26,076
$ 47
0.2 %
Front Store
5,259
5,243
16
0.3 %
Other
607
593
14
2.4 %
Prescriptions filled (5) (6)
451.2
435.5
15.7
3.6 %
Same store sales increase (decrease): (9)
Total
2.8 %
14.2 %
Pharmacy
3.1 %
17.7 %
Front Store
1.2 %
(0.3) %
Prescription volume (6)
6.8 %
6.7 %
Adjusted Earnings Per Share Guidance
(Unaudited)
The following reconciliations of projected net income attributable to CVS Health to projected adjusted income attributable to CVS Health and calculations of projected GAAP diluted EPS and projected Adjusted EPS contain forward-looking information. All forward-looking information involves risks and uncertainties. Actual results may differ materially from those contemplated by the forward-looking information for a number of reasons as described in our SEC filings, including those set forth in the Risk Factors section and under the heading "Cautionary Statement Concerning Forward-Looking Statements" in our most recently filed Annual Report on Form 10-K and our most recently filed Quarterly Report on Form 10-Q. See "Non-GAAP Financial Information" earlier in this press release and endnote (2) later in this press release for more information on how we calculate Adjusted EPS.
Year Ending
December 31, 2026
Low
High
In millions, except per share amounts
Total
Company
Per
Common
Share
Total
Company
Per
Common
Share
Net income attributable to CVS Health (GAAP measure)
$ 8,032
$ 6.24
$ 8,288
$ 6.44
Non-GAAP adjustments:
Amortization of intangible assets
1,730
1.35
1,730
1.35
Net realized capital losses
16
0.01
16
0.01
Acquisition-related integration costs
80
0.06
80
0.06
Tax impact of non-GAAP adjustments
(470)
(0.36)
(470)
(0.36)
Adjusted income attributable to CVS Health (2)
$ 9,388
$ 7.30
$ 9,644
$ 7.50
Weighted average diluted shares outstanding
1,286
1,286
Endnotes
(1) The Company defines adjusted operating income as operating income (GAAP measure) excluding the impact of amortization of intangible assets, net realized capital gains or losses and other items, if any, that neither relate to the ordinary course of the Company's business nor reflect the Company's underlying business performance, such as acquisition-related integration costs, certain legacy litigation charges, losses on Accountable Care assets and office real estate optimization charges. The chief operating decision maker (the "CODM") uses adjusted operating income as its principal measure of segment performance as it enhances the CODM's ability to compare past financial performance with current performance and analyze underlying business performance and trends. The consolidated measure is not determined in accordance with GAAP and should not be considered a substitute for, or superior to, the most directly comparable GAAP measure, consolidated operating income. See "Non-GAAP Financial Information" earlier in this press release for additional information regarding the items excluded from consolidated operating income in determining consolidated adjusted operating income.
(2) GAAP diluted earnings per share and Adjusted EPS, respectively, are calculated by dividing net income attributable to CVS Health and adjusted income attributable to CVS Health by the Company's weighted average diluted shares outstanding. The Company defines adjusted income attributable to CVS Health as net income attributable to CVS Health (GAAP measure) excluding the impact of amortization of intangible assets, net realized capital gains or losses and other items, if any, that neither relate to the ordinary course of the Company's business nor reflect the Company's underlying business performance, such as acquisition-related integration costs, certain legacy litigation charges, losses on Accountable Care assets, office real estate optimization charges, as well as the corresponding income tax benefit or expense related to the items excluded from adjusted income attributable to CVS Health. See "Non-GAAP Financial Information" earlier in this press release for additional information regarding the items excluded from net income attributable to CVS Health in determining adjusted income attributable to CVS Health.
(3) Medical benefit ratio is calculated by dividing the Health Care Benefits segment's health care costs by premium revenues and represents the percentage of premium revenues spent on medical benefits for the segment's insured members. Management uses MBR to assess the underlying business performance and underwriting of its insurance products, understand variances between actual results and expected results and identify trends in period-over-period results. MBR provides management and investors with information useful in assessing the operating results of the Health Care Benefits segment's insured products.
(4) Medical membership represents the number of members covered by the Health Care Benefits segment's insured and ASC medical products and related services at a specified point in time. Management uses this metric to understand variances between actual medical membership and expected amounts as well as trends in period-over-period results. This metric provides management and investors with information useful in understanding the impact of medical membership on the Health Care Benefits segment's total revenues and operating results.
(5) Pharmacy claims processed represents the number of prescription claims processed through the Company's pharmacy benefits manager and dispensed by either its retail network pharmacies or the Company's mail and specialty pharmacies. Prescriptions filled represents the number of prescriptions dispensed through the Pharmacy & Consumer Wellness segment's retail pharmacies and infusion services operations, as well as through the Omnicare long-term care pharmacies prior to their deconsolidation in September 2025. Management uses these metrics to understand variances between actual claims processed and prescriptions dispensed, respectively, and expected amounts as well as trends in period-over-period results. These metrics provide management and investors with information useful in understanding the impact of pharmacy claim volume and prescription volume, respectively, on segment total revenues and operating results.
(6) Includes an adjustment to convert 90-day prescriptions to the equivalent of three 30-day prescriptions. This adjustment reflects the fact that these prescriptions include approximately three times the amount of product days supplied compared to a normal prescription.
(7) Days claims payable is calculated by dividing the Health Care Benefits segment's health care costs payable at the end of each quarter by its average health care costs per day during such quarter. Management and investors use this metric as one of the indicators of the adequacy of the health care costs payable liability at the end of each quarter.
(8) Gross profit is calculated as the segment's total revenues less its cost of products sold, and, for the Health Services segment, health care costs. Gross margin is calculated by dividing the segment's gross profit by its total revenues and represents the percentage of total revenues that remains after incurring direct costs associated with the segment's products sold and services provided. Gross margin provides investors with information that may be useful in assessing the operating results of the Company's Health Services and Pharmacy & Consumer Wellness segments.
(9) Same store sales and prescription volume represent the change in revenues and prescriptions filled in the Company's retail pharmacy stores that have been operating for greater than one year and digital sales initiated online or through mobile applications and fulfilled through the Company's distribution centers, expressed as a percentage that indicates the increase or decrease relative to the comparable prior period. Same store metrics exclude revenues and prescriptions from infusion services operations and long-term care pharmacies. Management uses these metrics to evaluate the performance of existing stores on a comparable basis and to inform future decisions regarding existing stores and new locations. Same-store metrics provide management and investors with information useful in understanding the portion of current revenues and prescriptions resulting from organic growth in existing locations versus the portion resulting from opening new stores.
SOURCE CVS Health