CVS HEALTH CORPORATION REPORTS STRONG SECOND QUARTER 2026 RESULTS AND RAISES FULL-YEAR 2026 GUIDANCE
WOONSOCKET, R.I., Aug. 5, 2026 /PRNewswire/ -- CVS Health Corporation (NYSE: CVS) today announced operating results for the three months ended June 30, 2026.
"Our CVS Health colleagues build trust every day in communities across our country by making healthcare easier for millions of customers, patients and members. As our businesses work together to deliver a technology-powered care engagement experience, we continue to deliver strong performance. We uniquely enable what our customers want the most: simple, connected and convenient access to affordable, quality healthcare, where, when, and how they want it."
- David Joyner, CVS Health Chairman and CEO
Three Months Ended
June 30,
Year Ending
December 31,
In billions, except per share amounts
2026
2025
2026 Projected
Total revenues
$ 106.1
$ 98.9
At least $414.0
Diluted earnings per share
$ 2.31
$ 0.80
$6.84-$7.04
Adjusted EPS (2)
$ 2.58
$ 1.81
$7.90-$8.10
Second quarter GAAP diluted EPS of $2.31 increased from $0.80 in the prior year. Adjusted EPS of $2.58 increased from $1.81 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 second quarter results
Three Months Ended
June 30,
Six Months Ended
June 30,
In millions, except per share amounts
2026
2025
Change
2026
2025
Change
Total revenues
$ 106,096
$ 98,915
$ 7,181
$ 206,522
$ 193,503
$ 13,019
Operating income
4,703
2,381
2,322
9,383
5,755
3,628
Adjusted operating income (1)
5,157
3,808
1,349
10,307
8,387
1,920
Net income
2,995
1,013
1,982
5,952
2,795
3,157
Diluted earnings per share
$ 2.31
$ 0.80
$ 1.51
$ 4.61
$ 2.21
$ 2.40
Adjusted EPS (2)
$ 2.58
$ 1.81
$ 0.77
$ 5.16
$ 4.06
$ 1.10
For the three months ended June 30, 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 and six months ended June 30, 2026 and 2025 were as follows:
Three Months Ended
June 30,
Six Months Ended
June 30,
In millions, except percentages
2026
2025
Change
2026
2025
Change
Total revenues
$ 37,538
$ 36,258
$ 1,280
$ 73,509
$ 71,068
$ 2,441
Adjusted operating income (1)
2,426
1,308
1,118
5,467
3,301
2,166
Medical benefit ratio ("MBR") (3)
87.4 %
89.9 %
(2.5) %
86.0 %
88.6 %
(2.6) %
Medical membership (4)
26.0
26.7
(0.7)
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 and six months ended June 30, 2026 and 2025 were as follows:
Three Months Ended
June 30,
Six Months Ended
June 30,
In millions
2026
2025
Change
2026
2025
Change
Total revenues
$ 51,795
$ 46,453
$ 5,342
$ 100,032
$ 89,915
$ 10,117
Adjusted operating income (1)
1,733
1,575
158
3,222
3,178
44
Pharmacy claims processed (5) (6)
473.0
469.0
4.0
937.7
933.2
4.5
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 and six months ended June 30, 2026 and 2025 were as follows:
Three Months Ended
June 30,
Six Months Ended
June 30,
In millions
2026
2025
Change
2026
2025
Change
Total revenues
$ 33,816
$ 33,581
$ 235
$ 65,805
$ 65,493
$ 312
Adjusted operating income (1)
1,475
1,338
137
2,672
2,651
21
Prescriptions filled (5) (6)
457.0
438.1
18.9
908.2
873.6
34.6
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 June 30, 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 87 million plan members. The Company also serves an estimated 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 second 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 20 for explanations of non-GAAP financial measures presented in this press release. See pages 12 through 14 and page 19 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 Reports on Form 10-Q for the quarterly periods ended March 31, 2026 and June 30, 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
June 30,
Six Months Ended
June 30,
In millions, except per share amounts
2026
2025
2026
2025
Revenues:
Products
$ 66,219
$ 60,607
$ 128,445
$ 118,276
Premiums
35,117
34,195
68,908
67,015
Services
4,119
3,626
7,954
7,205
Net investment income
641
487
1,215
1,007
Total revenues
106,096
98,915
206,522
193,503
Operating costs:
Cost of products sold
58,862
54,005
114,306
105,062
Health care costs
31,485
31,317
60,843
60,452
Operating expenses
11,046
11,212
21,990
22,234
Total operating costs
101,393
96,534
197,139
187,748
Operating income
4,703
2,381
9,383
5,755
Interest expense
(757)
(763)
(1,531)
(1,548)
Other income
31
29
63
57
Income before income tax provision
3,977
1,647
7,915
4,264
Income tax provision
982
634
1,963
1,469
Net income
2,995
1,013
5,952
2,795
Net (income) loss attributable to noncontrolling interests
(16)
8
(30)
5
Net income attributable to CVS Health
$ 2,979
$ 1,021
$ 5,922
$ 2,800
Net income per share attributable to CVS Health:
Basic
$ 2.33
$ 0.81
$ 4.64
$ 2.22
Diluted
$ 2.31
$ 0.80
$ 4.61
$ 2.21
Weighted average shares outstanding:
Basic
1,279
1,266
1,276
1,264
Diluted
1,287
1,270
1,283
1,267
CVS HEALTH CORPORATION
Condensed Consolidated Balance Sheets
(Unaudited)
In millions
June 30,
2026
December 31,
2025
Assets:
Cash and cash equivalents
$ 11,329
$ 8,453
Investments
2,629
2,145
Accounts receivable, net
40,309
39,779
Inventories
17,622
19,246
Other current assets
3,457
5,091
Total current assets
75,346
74,714
Long-term investments
33,247
32,669
Property and equipment, net
13,168
13,083
Operating lease right-of-use assets
14,451
14,973
Goodwill
85,478
85,478
Intangible assets, net
24,644
25,508
Other assets
7,434
7,113
Total assets
$ 253,768
$ 253,538
Liabilities:
Accounts payable
$ 17,167
$ 17,641
Pharmacy claims and discounts payable
26,203
26,344
Health care costs payable
16,313
15,399
Accrued expenses and other current liabilities
22,477
22,387
Other insurance liabilities
1,009
1,116
Current portion of operating lease liabilities
1,914
1,737
Current portion of long-term debt
1,958
4,068
Total current liabilities
87,041
88,692
Long-term operating lease liabilities
12,982
13,643
Long-term debt
59,452
60,502
Deferred income taxes
3,766
3,832
Other long-term insurance liabilities
4,516
4,716
Other long-term liabilities
6,112
6,771
Total liabilities
173,869
178,156
Shareholders' equity:
Preferred stock
—
—
Common stock and capital surplus
50,968
50,402
Treasury stock
(36,852)
(36,790)
Retained earnings
65,398
61,196
Accumulated other comprehensive income
188
406
Total CVS Health shareholders' equity
79,702
75,214
Noncontrolling interests
197
168
Total shareholders' equity
79,899
75,382
Total liabilities and shareholders' equity
$ 253,768
$ 253,538
CVS HEALTH CORPORATION
Condensed Consolidated Statements of Cash Flows
(Unaudited)
Six Months Ended
June 30,
In millions
2026
2025
Cash flows from operating activities:
Reconciliation of net income to net cash provided by operating activities:
Net income
$ 5,952
$ 2,795
Adjustments required to reconcile net income to net cash provided by operating
activities:
Depreciation and amortization
2,241
2,325
Stock-based compensation
442
262
Loss on sale of subsidiary
—
236
Deferred income taxes and other items
(241)
(283)
Change in operating assets and liabilities
2,200
1,118
Net cash provided by operating activities
10,594
6,453
Cash flows from investing activities:
Proceeds from sales and maturities of investments
7,483
6,866
Purchases of investments
(8,704)
(7,186)
Purchases of property and equipment
(1,540)
(1,350)
Acquisitions
(9)
(139)
Other
12
23
Net cash used in investing activities
(2,758)
(1,786)
Cash flows from financing activities:
Commercial paper borrowings (repayments), net
—
921
Repayments of long-term debt
(3,287)
(762)
Dividends paid
(1,725)
(1,706)
Proceeds from exercise of stock options
217
191
Payments for taxes related to net share settlement of equity awards
(154)
(125)
Other
(62)
(45)
Net cash used in financing activities
(5,011)
(1,526)
Net increase in cash, cash equivalents and restricted cash
2,825
3,141
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
$ 11,537
$ 12,025
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 second 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 20 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 14 and page 19.
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 June 30, 2026
In millions
Health Care
Benefits
Health
Services
Pharmacy &
Consumer
Wellness
Corporate/
Other
Consolidated
Totals
Operating income (loss) (GAAP measure)
$ 2,191
$ 1,603
$ 1,411
$ (502)
$ 4,703
Amortization of intangible assets
237
130
64
—
431
Net realized capital (gains) losses
(2)
—
—
15
13
Acquisition-related integration costs
—
—
—
10
10
Adjusted operating income (loss) (1)
$ 2,426
$ 1,733
$ 1,475
$ (477)
$ 5,157
Three Months Ended June 30, 2025
In millions
Health Care
Benefits
Health
Services
Pharmacy &
Consumer
Wellness
Corporate/
Other
Consolidated
Totals
Operating income (loss) (GAAP measure)
$ 1,002
$ 1,102
$ 736
$ (459)
$ 2,381
Amortization of intangible assets
293
141
60
—
494
Net realized capital losses
13
—
—
14
27
Acquisition-related integration costs
—
—
—
28
28
Legacy litigation charges
—
291
542
—
833
Loss on Accountable Care assets
—
41
—
—
41
Office real estate optimization charges
—
—
—
4
4
Adjusted operating income (loss) (1)
$ 1,308
$ 1,575
$ 1,338
$ (413)
$ 3,808
Six Months Ended June 30, 2026
In millions
Health Care
Benefits
Health
Services
Pharmacy &
Consumer
Wellness
Corporate/
Other
Consolidated
Totals
Operating income (loss) (GAAP measure)
$ 4,997
$ 2,950
$ 2,545
$ (1,109)
$ 9,383
Amortization of intangible assets
473
272
127
1
873
Net realized capital (gains) losses
(3)
—
—
32
29
Acquisition-related integration costs
—
—
—
22
22
Adjusted operating income (loss) (1)
$ 5,467
$ 3,222
$ 2,672
$ (1,054)
$ 10,307
Six Months Ended June 30, 2025
In millions
Health Care
Benefits
Health
Services
Pharmacy &
Consumer
Wellness
Corporate/
Other
Consolidated
Totals
Operating income (loss) (GAAP measure)
$ 2,676
$ 2,329
$ 1,600
$ (850)
$ 5,755
Amortization of intangible assets
587
285
120
1
993
Net realized capital (gains) losses
34
(15)
—
29
48
Acquisition-related integration costs
—
—
—
73
73
Legacy litigation charges
—
291
929
—
1,220
Loss on Accountable Care assets
—
288
—
—
288
Office real estate optimization charges
4
—
2
4
10
Adjusted operating income (loss) (1)
$ 3,301
$ 3,178
$ 2,651
$ (743)
$ 8,387
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
June 30, 2026
Three Months Ended
June 30, 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)
$ 2,979
$ 2.31
$ 1,021
$ 0.80
Amortization of intangible assets
431
0.33
494
0.39
Net realized capital losses
13
0.01
27
0.02
Acquisition-related integration costs
10
0.01
28
0.02
Legacy litigation charges
—
—
833
0.66
Loss on Accountable Care assets
—
—
41
0.03
Office real estate optimization charges
—
—
4
—
Tax impact of non-GAAP adjustments
(109)
(0.08)
(144)
(0.11)
Adjusted income attributable to CVS Health (2)
$ 3,324
$ 2.58
$ 2,304
$ 1.81
Weighted average diluted shares outstanding
1,287
1,270
Six Months Ended
June 30, 2026
Six Months Ended
June 30, 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)
$ 5,922
$ 4.61
$ 2,800
$ 2.21
Amortization of intangible assets
873
0.68
993
0.78
Net realized capital losses
29
0.02
48
0.04
Acquisition-related integration costs
22
0.02
73
0.06
Legacy litigation charges
—
—
1,220
0.96
Loss on Accountable Care assets
—
—
288
0.23
Office real estate optimization charges
—
—
10
0.01
Tax impact of non-GAAP adjustments
(230)
(0.17)
(284)
(0.23)
Adjusted income attributable to CVS Health (2)
$ 6,616
$ 5.16
$ 5,148
$ 4.06
Weighted average diluted shares outstanding
1,283
1,267
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
June 30, 2026
Total revenues
$ 37,538
$ 51,795
$ 33,816
$ 147
$ (17,200)
$ 106,096
Adjusted operating
income (loss) (1)
2,426
1,733
1,475
(477)
—
5,157
June 30, 2025
Total revenues
$ 36,258
$ 46,453
$ 33,581
$ 96
$ (17,473)
$ 98,915
Adjusted operating
income (loss) (1)
1,308
1,575
1,338
(413)
—
3,808
Six Months Ended
June 30, 2026
Total revenues
$ 73,509
$ 100,032
$ 65,805
$ 273
$ (33,097)
$ 206,522
Adjusted operating
income (loss) (1)
5,467
3,222
2,672
(1,054)
—
10,307
June 30, 2025
Total revenues
$ 71,068
$ 89,915
$ 65,493
$ 229
$ (33,202)
$ 193,503
Adjusted operating
income (loss) (1)
3,301
3,178
2,651
(743)
—
8,387
(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:
Change
Three Months Ended
June 30,
Six Months Ended
June 30,
Three Months Ended
June 30,
2026 vs 2025
Six Months Ended
June 30,
2026 vs 2025
In millions, except percentages and
basis points ("bps")
2026
2025
2026
2025
$
%
$
%
Revenues:
Premiums
$ 35,119
$ 34,184
$ 68,911
$ 66,992
$ 935
2.7 %
$ 1,919
2.9 %
Services
1,911
1,667
3,628
3,282
244
14.6 %
346
10.5 %
Net investment income
508
407
970
794
101
24.8 %
176
22.2 %
Total revenues
37,538
36,258
73,509
71,068
1,280
3.5 %
2,441
3.4 %
Health care costs
30,692
30,740
59,271
59,377
(48)
(0.2) %
(106)
(0.2) %
MBR (Health care costs as a %
of premium revenues) (3)
87.4 %
89.9 %
86.0 %
88.6 %
(250)
bps
(260)
bps
Operating expenses
$ 4,655
$ 4,516
$ 9,241
$ 9,015
$ 139
3.1 %
$ 226
2.5 %
Operating expenses as a % of
total revenues
12.4 %
12.5 %
12.6 %
12.7 %
Operating income
$ 2,191
$ 1,002
$ 4,997
$ 2,676
$ 1,189
118.7 %
$ 2,321
86.7 %
Operating income as a % of
total revenues
5.8 %
2.8 %
6.8 %
3.8 %
Adjusted operating income (1)
$ 2,426
$ 1,308
$ 5,467
$ 3,301
$ 1,118
85.5 %
$ 2,166
65.6 %
Adjusted operating income as a
% of total revenues
6.5 %
3.6 %
7.4 %
4.6 %
Premium revenues (by business):
Government
$ 28,494
$ 25,930
$ 56,277
$ 50,832
$ 2,564
9.9 %
$ 5,445
10.7 %
Commercial
6,625
8,254
12,634
16,160
(1,629)
(19.7) %
(3,526)
(21.8) %
The following table summarizes the Health Care Benefits segment's medical membership for the respective periods:
June 30, 2026
March 31, 2026
December 31, 2025
June 30, 2025
In thousands
Insured
ASC
Total
Insured
ASC
Total
Insured
ASC
Total
Insured
ASC
Total
Medical membership: (4)
Commercial
2,487
15,833
18,320
2,462
15,872
18,334
3,447
15,350
18,797
3,608
15,251
18,859
Medicare Advantage
4,202
—
4,202
4,175
—
4,175
4,267
—
4,267
4,240
—
4,240
Medicare Supplement
1,176
—
1,176
1,192
—
1,192
1,202
—
1,202
1,236
—
1,236
Medicaid
1,964
361
2,325
1,938
366
2,304
1,952
373
2,325
1,985
401
2,386
Total medical membership
9,829
16,194
26,023
9,767
16,238
26,005
10,868
15,723
26,591
11,069
15,652
26,721
Supplemental membership information:
Medicare Prescription Drug Plan (stand-alone)
3,870
3,889
4,041
4,065
The following table summarizes the Health Care Benefits segment's days claims payable for the respective periods:
June 30, 2026
March 31, 2026
December 31, 2025
June 30, 2025
Days Claims Payable (7)
41.7
42.9
38.9
40.9
Supplemental Information
(Unaudited)
Health Services segment
The following table summarizes the Health Services segment's performance for the respective periods:
Change
Three Months Ended
June 30,
Six Months Ended
June 30,
Three Months Ended
June 30,
2026 vs 2025
Six Months Ended
June 30,
2026 vs 2025
In millions, except percentages
2026
2025
2026
2025
$
%
$
%
Revenues:
Products
$ 49,216
$ 44,223
$ 94,942
$ 85,358
$ 4,993
11.3 %
$ 9,584
11.2 %
Services
2,580
2,233
5,091
4,546
347
15.5 %
545
12.0 %
Net investment income (loss)
(1)
(3)
(1)
11
2
66.7 %
(12)
(109.1) %
Total revenues
51,795
46,453
100,032
89,915
5,342
11.5 %
10,117
11.3 %
Cost of products sold
47,908
43,080
92,627
83,195
4,828
11.2 %
9,432
11.3 %
Health care costs
1,350
1,101
2,652
2,148
249
22.6 %
504
23.5 %
Gross profit (8)
2,537
2,272
4,753
4,572
265
11.7 %
181
4.0 %
Gross margin (Gross profit as a
% of total revenues) (8)
4.9 %
4.9 %
4.8 %
5.1 %
Operating expenses
$ 934
$ 1,170
$ 1,803
$ 2,243
$ (236)
(20.2) %
$ (440)
(19.6) %
Operating expenses as a % of
total revenues
1.8 %
2.5 %
1.8 %
2.5 %
Operating income
$ 1,603
$ 1,102
$ 2,950
$ 2,329
$ 501
45.5 %
$ 621
26.7 %
Operating income as a % of
total revenues
3.1 %
2.4 %
2.9 %
2.6 %
Adjusted operating income (1)
$ 1,733
$ 1,575
$ 3,222
$ 3,178
$ 158
10.0 %
$ 44
1.4 %
Adjusted operating income as a
% of total revenues
3.3 %
3.4 %
3.2 %
3.5 %
Pharmacy claims processed (5) (6)
473.0
469.0
937.7
933.2
4.0
0.9 %
4.5
0.5 %
Supplemental Information
(Unaudited)
Pharmacy & Consumer Wellness segment
The following table summarizes the Pharmacy & Consumer Wellness segment's performance for the respective periods:
Change
Three Months Ended
June 30,
Six Months Ended
June 30,
Three Months Ended
June 30,
2026 vs 2025
Six Months Ended
June 30,
2026 vs 2025
In millions, except percentages
2026
2025
2026
2025
$
%
$
%
Revenues:
Products
$ 33,152
$ 32,942
$ 64,491
$ 64,227
$ 210
0.6 %
$ 264
0.4 %
Services
664
639
1,314
1,266
25
3.9 %
48
3.8 %
Total revenues
33,816
33,581
65,805
65,493
235
0.7 %
312
0.5 %
Cost of products sold
27,282
27,554
53,072
53,358
(272)
(1.0) %
(286)
(0.5) %
Gross profit (8)
6,534
6,027
12,733
12,135
507
8.4 %
598
4.9 %
Gross margin (Gross profit as a
% of total revenues) (8)
19.3 %
17.9 %
19.3 %
18.5 %
Operating expenses
$ 5,123
$ 5,291
$ 10,188
$ 10,535
$ (168)
(3.2) %
$ (347)
(3.3) %
Operating expenses as a % of
total revenues
15.1 %
15.8 %
15.5 %
16.1 %
Operating income
$ 1,411
$ 736
$ 2,545
$ 1,600
$ 675
91.7 %
$ 945
59.1 %
Operating income as a % of
total revenues
4.2 %
2.2 %
3.9 %
2.4 %
Adjusted operating income (1)
$ 1,475
$ 1,338
$ 2,672
$ 2,651
$ 137
10.2 %
$ 21
0.8 %
Adjusted operating income as a
% of total revenues
4.4 %
4.0 %
4.1 %
4.0 %
Revenues (by major
goods/service lines):
Pharmacy
$ 27,781
$ 27,631
$ 53,904
$ 53,707
$ 150
0.5 %
$ 197
0.4 %
Front Store
5,407
5,368
10,666
10,611
39
0.7 %
55
0.5 %
Other
628
582
1,235
1,175
46
7.9 %
60
5.1 %
Prescriptions filled (5) (6)
457.0
438.1
908.2
873.6
18.9
4.3 %
34.6
4.0 %
Same store sales increase: (9)
Total
2.6 %
15.4 %
2.7 %
14.8 %
Pharmacy
2.9 %
18.1 %
3.0 %
17.9 %
Front Store
1.0 %
3.4 %
1.1 %
1.5 %
Prescription volume (6)
7.0 %
6.4 %
6.9 %
6.5 %
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)
$ 8,810
$ 6.84
$ 9,065
$ 7.04
Non-GAAP adjustments:
Amortization of intangible assets
1,730
1.34
1,730
1.34
Net realized capital losses
29
0.02
29
0.02
Acquisition-related integration costs
80
0.06
80
0.06
Tax impact of non-GAAP adjustments
(463)
(0.36)
(463)
(0.36)
Adjusted income attributable to CVS Health (2)
$ 10,186
$ 7.90
$ 10,441
$ 8.10
Weighted average diluted shares outstanding
1,289
1,289
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