Retail pharmacy chain CVS Health’s (CVS) shares are up 81.86% year-to-date despite subsidiary Omnicare’s recent Texas bankruptcy filing. Wall Street remains bullish on the stock into year-end and for 2026.
Claim 50% Off TipRanks Premium and Invest with Confidence
- Unlock hedge-fund level data and powerful investing tools designed to help you make smarter, sharper decisions
- Stay ahead of the market with the latest news and analysis so your portfolio is always positioned for maximum potential
In the latest rating, J.P. Morgan analyst Lisa Gill reaffirmed her Buy rating on the stock and raised her price target from $93 to $101, implying about 29% upside. As part of its 2026 outlook on healthcare stocks, Gill argued that there are reasons to believe that managed care companies are near the low point of their earnings cycles, meaning that there is potential for upward revision.
Wall Street Hails Future Earnings Growth Projection
The five-star analyst’s comment came days after CVS Health raised its guidance for Fiscal Year 2026 to wide applause from Wall Street. The health services group noted that it expects to see a compound annual growth rate (CAGR) in the mid-teens for its adjusted earnings per share (EPS) throughout 2028 — this compares more favorably with its prior 6% growth.
The company, which is based in the U.S. state of Rhode Island, expects to build its performance on stronger margins from its businesses, led by recovery at its insurance arm Health Care Benefits (HCB).
CVS Health Sees FY26 Revenue Below Consensus
In Q3 2025, CVS Health expanded its revenue and EPS, topping Wall Street projections despite a $5.78 billion write-down. The company has said it is closing out 2025 “with meaningful momentum” and expects its FY26 revenue to reach $400 billion, below analysts’ consensus of $418.33 billion.
However, focusing on CAGR projection for the EPS, Morgan Stanley analyst Erin Wright noted that the guidance was “well received” and is “nicely ahead” of previous estimates. Wright added that the pharmacy chain’s 2026 guidance also fell in line with previous commentary.
Is CVS Health a Good Stock to Buy?
Across Wall Street, CVS Health’s shares continue to carry a Strong Buy consensus rating. This is based on 17 Buys and one Hold issued by analysts over the past three months.
In addition, the average CVS price target of $95.67 implies over 22% upside potential from current trading levels.
See more CVS analyst ratings here.