CVS Health (NYSE:CVS) Releases Quarterly Earnings Results, Beats Expectations By $0.44 EPS

CVS Health (NYSE:CVS) released its earnings results on Wednesday. The pharmacy operator reported $2.09 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.65 by $0.44, FiscalAI reports. The company had revenue of $108.40 billion for the quarter, compared to analyst estimates of $104.69 billion. CVS Health had a return on equity of 13.12% and a net margin of 1.18%. CVS Health’s quarterly revenue was up 5.4% on a year-over-year basis. During the same period in the prior year, the firm posted $1.60 EPS.

Here are the key takeaways from CVS Health’s conference call:

• CVS reported Q3 adjusted EPS of $2.09, up more than 30% year over year, and raised its 2026 adjusted EPS outlook to at least $8.20 and cash flow from operations outlook to at least $15.5 billion.
• Aetna’s adjusted operating income rose to about $900 million, with its medical benefit ratio improving to 91.3%; management said Medicare Advantage is expected to return to profitability in 2026 and deliver further margin improvement in 2027. Pharmacy and Consumer Wellness operating income also rose more than 10%, supported by prescription volume growth.
• CVS expects Health Services adjusted operating income of at least $7 billion in 2027, while identifying declines in 340B and health-plan client membership as headwinds. Management called 2027 a trough year for the segment, with a return to growth expected afterward.
• CVS plans to separate into a health solutions company retaining Aetna, Caremark, specialty pharmacy, and care delivery, and a retail pharmacy and community healthcare company. The tax-free separation is targeted for the first half of 2028; management said both companies should have investment-grade balance sheets and that commercial agreements will preserve key offerings.
• Management set a 2027 adjusted EPS floor of $8.65 and said it expects to reach the high end of its mid-teens adjusted EPS growth range through 2028. The outlook assumes share repurchases offset dilution, but does not include an added contribution from buybacks.

CVS Health Price Performance

Shares of CVS traded down $11.51 during trading hours on Wednesday, reaching $79.90. The stock had a trading volume of 34,269,207 shares, compared to its average volume of 8,678,666. The company has a debt-to-equity ratio of 0.74, a quick ratio of 0.66 and a current ratio of 0.87. CVS Health has a 12 month low of $69.51 and a 12 month high of $110.68. The stock has a market capitalization of $102.19 billion, a PE ratio of 11.66, a PEG ratio of 0.85 and a beta of 0.58. The company’s 50-day moving average is $90.82 and its two-hundred day moving average is $88.86.

CVS Health Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Monday, November 2nd. Stockholders of record on Thursday, October 22nd were paid a $0.6650 dividend. This represents a $2.66 dividend on an annualized basis and a dividend yield of 3.3%. The ex-dividend date was Thursday, October 22nd. CVS Health’s dividend payout ratio is presently 70.37%.

More CVS Health News

Here are the key news stories impacting CVS Health this week:

• Positive Sentiment: CVS reported Q3 adjusted earnings of $2.09 per share, above the $1.65 consensus estimate, while revenue rose 5.4% year over year to $108.4 billion. Management raised its 2026 adjusted EPS outlook to at least $8.20 from a prior range of $7.90–$8.10. CVS Q3 results and guidance
• Neutral Sentiment: The company plans to separate its retail pharmacy business from its health benefits, pharmacy-benefit and care operations, creating two publicly traded companies by the first half of 2028. CVS says the businesses could gain focus and strategic flexibility, though the separation is still more than a year away. CVS breakup plan
• Negative Sentiment: The breakup announcement appears to be the main overhang: investors are reacting warily to CVS reversing its vertically integrated strategy, including the Aetna combination, despite the earnings beat. The scale and complexity of unwinding the businesses may be fueling uncertainty around execution and the value of the new structure. Market reaction to CVS split plan

Wall Street Analyst Weigh In

CVS has been the topic of several recent analyst reports. Raymond James Financial reissued an “outperform” rating and issued a $120.00 target price on shares of CVS Health in a report on Wednesday. Leerink Partners dropped their target price on shares of CVS Health from $119.00 to $112.00 and set an “outperform” rating for the company in a research report on Monday, October 12th. Wells Fargo & Company upped their price target on shares of CVS Health from $103.00 to $123.00 and gave the stock an “overweight” rating in a report on Monday, July 13th. Jefferies Financial Group reiterated a “buy” rating and set a $103.00 price target on shares of CVS Health in a research report on Wednesday. Finally, UBS Group set a $110.00 price objective on shares of CVS Health in a research report on Wednesday. Twenty-two research analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company’s stock. According to MarketBeat, the stock has an average rating of “Moderate Buy” and a consensus price target of $109.46.

About CVS Health

CVS Health Corporation (NYSE: CVS) is a diversified health care company that provides pharmacy, insurance and health services in the United States. Its businesses serve consumers, employers, health plans and health care providers through pharmacies, benefit programs, insurance coverage and clinical care services.

The company’s Pharmacy Services segment, led by CVS Caremark, manages prescription drug benefits for employers, insurers and government programs. CVS Pharmacy operates retail pharmacies and health-focused stores that dispense prescriptions and offer over-the-counter products, health and wellness merchandise, immunizations and related services.