CVS Health Corporation
CVSFinancial Snapshot
ticker: CVS step: 04 generated: 2026-05-12 source: quick-research
CVS Health Corporation (CVS) — Financial Snapshot
Income Statement Summary
| Metric | FY2023 | FY2024 | FY2025 | YoY (FY25) |
|---|---|---|---|---|
| Total Revenue | $357.8B | $372.8B | ~$390B | +4–5% |
| GAAP EPS | $6.47 | $3.40 (impairment-impacted) | ~$5.50 (rebound) | recovery |
| Adjusted EPS | $8.74 | $5.94 | ~$6.50 | recovering |
Q1 2026 Beat + Raised Guidance
| Metric | Q1 2026 |
|---|---|
| Revenue | $100.4B (+6.2% YoY) |
| GAAP EPS | $2.30 (vs. $1.41) |
| Adjusted EPS | $2.57 (vs. $2.25) |
| Aetna Medical Loss Ratio | 84.6% (vs. 87.3% prior year) |
| Operating Cash Flow | $4.2B |
FY2026 Raised Guidance (post Q1)
| Metric | 2026 Guide |
|---|---|
| Revenue | At least $405B (raised from $400B) |
| Adjusted EPS | $7.30–7.50 (raised from $7.00–7.20) |
| GAAP EPS | $6.24–6.44 |
| Operating Cash Flow | At least $9.5B |
| Capital Returned to Shareholders | Quarterly dividends maintained |
Cash Flow & Capital Allocation (FY2025)
| Metric | Value |
|---|---|
| Operating Cash Flow | ~$8B (constrained by working capital) |
| Capital Expenditures | ~$3.5B |
| Free Cash Flow | ~$4.5B |
| Quarterly Dividend | $0.665 |
| Annual Dividend | $2.66 |
| Dividend Yield | ~4.5% |
| Cash & Investments | ~$8B |
| Total Debt | ~$60B (Aetna + Signify + Oak Street acquisitions) |
| Net Debt / EBITDA | ~3.0x |
Segment Performance Trends
| Segment | FY2025 Trends |
|---|---|
| Health Care Benefits (Aetna) | MLR improving 84.6% (Q1 26) vs. 87.3% (Q1 25); Medicare Advantage stars top-tier for 2026 |
| Health Services (Caremark + Oak Street + Signify) | Caremark stable; Oak Street restructured post $5.7B impairment Q3 25 |
| Pharmacy & Consumer Wellness | Pharmacy script volume up; ~900 underperforming stores closed |
Key Ratios (approximate)
- P/E: ~10x (FY26E EPS midpoint) | EV/EBITDA: ~9x | FCF Yield: ~5%
- Revenue Growth (FY25): +4–5%
- Aetna MLR (Q1 26): 84.6% (vs. 87.3% Q1 25)
- Dividend Yield: ~4.5%
- Net Debt / EBITDA: ~3.0x
Growth Profile
2025 was the trough year for Aetna — Medicare Advantage cost pressures + Inflation Reduction Act + medical-cost inflation drove FY24 GAAP EPS down to $3.40 ($5.7B Oak Street impairment in Q3 2025). FY25 began the recovery; Q1 2026 confirmed the turnaround:
- Aetna MLR improved 270 bps YoY to 84.6%
- Aetna 2026 Medicare Advantage star ratings top-tier among national payers
- Caremark PBM stable
- Pharmacy + consumer wellness benefiting from closure of underperforming stores ($2B+ cost-cut program)
- FY26 EPS guide raised from $7.00–7.20 to $7.30–7.50
The defining 2026 narrative: Aetna MA recovery + cost discipline + revamped Oak Street strategy.
Forward Estimates
FY2026 Guide (raised post Q1):
- Revenue: ≥$405B
- Adjusted EPS: $7.30–7.50 (~$2 above FY25)
- FCF: ≥$9.5B operating cash flow
Bull case: Aetna MA returns to historical 86%+ MLR profitability (FY26-27); Caremark PBM regulatory pressure manageable; pharmacy closure benefits flow through margin; EPS reaches $9+ by FY28; multiple expands to 13x. Bear case: Medicare Advantage rate cycle remains unfavorable (CMS rate cuts); PBM rebate retention regulation passes; pharmacy front-store retail weakness; EPS stuck at $7. Consensus targets ~$90–105 vs. trading ~$74–84 (~15–30% implied upside).
Deeper Financial Analysis
The fundamental tier adds 9 additional research dimensions for $CVS.