CVS Health Corp.
CVS reported adjusted earnings of $2.58 per share, topping the analyst consensus estimate of $1.85. Revenue increased 7.3% year over year to $106.10 billion, exceeding the consensus estimate of $100.11 billion.
Adjusted operating income rose 35.4% to $5.16 billion, supported by growth across all operating segments.
Health Care Benefits Performance Improves
Revenue in the Health Care Benefits segment increased 3.5% to $37.54 billion, driven by growth in the government business, partially offset by the company's exit from the individual exchange business in 2026.
The medical benefit ratio improved to 87.4% from 89.9% a year earlier, reflecting stronger performance in the government business and the absence of a premium deficiency reserve recorded in the prior-year period.
Medical membership declined to 26.02 million from 26.72 million a year earlier.
The Health Services segment, which includes pharmacy benefit management, posted an 11.5% increase in revenue to $51.80 billion, driven by improved purchasing economics, changes in pharmacy drug mix and modest improvement in the health care delivery business.
Revenue in the Pharmacy & Consumer Wellness segment edged higher to $33.82 billion, while prescriptions filled increased 4.3% to 457 million.
Raises Full-Year Outlook
CVS raised its fiscal 2026 adjusted earnings guidance to a range of $7.90 to $8.10 per share from its previous outlook of $7.30 to $7.50. The new guidance is above the analyst consensus estimate of $7.45.
The company expects fiscal 2026 revenue to exceed $414 billion, compared with the consensus estimate of $409.24 billion.
CVS reaffirmed its expectation for a 2026 medical benefit ratio of 89.75%, plus or minus 25 basis points, citing what it described as "a respectful and prudent view of medical cost trends in the second half of the year."
During its earnings call, the company said it expects ongoing market dynamics in its 340B business to remain a headwind in 2027 and anticipates membership declines in its Caremark pharmacy benefit management business next year.
Expands GLP-1 Weight Management Platform
Separately, CVS announced an expanded weight management platform designed to streamline access to GLP-1 therapies by combining virtual clinical care, pharmacy services and medication pricing support.
The company is partnering with Eli Lilly and Company
CVS also introduced a $29 virtual MinuteClinic visit, allowing eligible patients to consult licensed clinicians who can evaluate and prescribe GLP-1 therapies when clinically appropriate.
The company said eligible commercially insured patients may pay as little as $25 per month with manufacturer coupons, while qualifying uninsured patients may access certain GLP-1 medications for $149 using manufacturer vouchers.
CVS Price Action: CVS Health shares were down 6.49% at $97.64 at the time of publication on Wednesday, according to Benzinga Pro data.
