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CVS Health
(NYSE:CVS)
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Rating:69Neutral
Price Target:
$114.00
▲(47.48% Upside)
Action:Reiterated
Date:05/19/26
The score is driven by attractive valuation (low P/E with dividend support) and positive technical momentum (price above major moving averages), reinforced by a guidance raise and strong Q1 execution. The main limiter is financial performance: margins and ROE have compressed materially despite revenue growth, and several earnings-call risks (medical cost trends, segment profit pressure, and regulatory/PBM uncertainty) temper upside.
Positive Factors
Vertical integration and scale
CVS's integrated model linking Aetna, Caremark and retail pharmacy creates durable competitive advantages: it can retain members, steer prescriptions to owned channels, and coordinate care to lower total medical costs. This structural linkage supports long‑term revenue capture and cross‑segment synergies that persist beyond near‑term cycles.
Negative Factors
Profitability compression and weak returns
Margins and returns have materially deteriorated, reducing the balance sheet’s earnings power. Persistent compression limits reinvestment, slows deleveraging opportunities, and makes it harder to generate sustained ROE and cash‑flow growth. Absent durable margin recovery, scale alone won't translate into commensurate shareholder returns.
Read all positive and negative factors
Positive Factors
Negative Factors
Vertical integration and scale
CVS's integrated model linking Aetna, Caremark and retail pharmacy creates durable competitive advantages: it can retain members, steer prescriptions to owned channels, and coordinate care to lower total medical costs. This structural linkage supports long‑term revenue capture and cross‑segment synergies that persist beyond near‑term cycles.
Read all positive factors
CVS Health Key Performance Indicators (KPIs)
Any
Revenue by Segment
Breaks down sales across different business units, revealing which areas contribute most to growth and where the company might face challenges or opportunities.
Breaks down sales across different business units, revealing which areas contribute most to growth and where the company might face challenges or opportunities.
Data provided by:
The Fly
The FlyCVS Health (CVS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$133.13B
Dividend Yield3.41%
Average Volume (3M)8.99M
Price to Earnings (P/E)44.8
Beta (1Y)0.51
Revenue Growth7.68%
EPS Growth-45.09%
CountryUS
Employees300,000
SectorHealthcare
Sector Strength45
IndustryMedical - Healthcare Plans
Share Statistics
EPS (TTM)2.31
Shares Outstanding1,275,927,200
10 Day Avg. Volume9,609,227
30 Day Avg. Volume8,994,894
Financial Highlights & Ratios
PEG Ratio-0.92
Price to Book (P/B)1.34
Price to Sales (P/S)0.25
P/FCF Ratio12.88
Enterprise Value/Market Cap1.47
Enterprise Value/Revenue0.48
Enterprise Value/Gross Profit3.45
Enterprise Value/Ebitda17.55
Forecast
1Y Price Target
$105.56Price Target Upside36.56% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering17
EPS Forecast (FY)7.41
Revenue Forecast (FY)$408.34B
CVS Health Business Overview & Revenue Model
Company Description
CVS Health Corp. is a health solutions company, which engages in the provision of healthcare services. It operates through the following segments: Health Care Benefits, Health Services, Pharmacy and Consumer Wellness, and Corporate and Other. The ...
How the Company Makes Money
CVS Health makes money primarily by (1) collecting premiums and other administrative/service revenue in its health insurance business, (2) earning fees and margins in its pharmacy services and pharmacy benefit management (PBM) business, and (3) ge...
CVS Health Earnings Call Summary
Earnings Call Date:May 06, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 05, 2026
Earnings Call Sentiment Positive
The call conveyed a generally positive tone driven by clear top-line growth, strong cash generation, profit and EPS beats, an upward revision to full-year EPS guidance, meaningful improvement at Aetna (material AOI gain and operational efficiencies), and ongoing technology/AI initiatives (Health100). Offsetting risks include segment-level profit declines (Health Services and PCW), membership impacts from the Individual Exchange exit, continued elevated medical cost trends, PBM rebate pressures and regulatory/state-level uncertainty. On balance, the favorable operating metrics, raised guidance, and credible path to margin recovery outweighed the identifiable challenges.Positive Updates
Top-Line Revenue Growth
Enterprise revenue of over $100 billion in Q1 2026, up more than 6% year-over-year, driven by growth across all operating segments; full-year revenue now expected to be at least $405 billion.
Negative Updates
Health Services Adjusted Operating Income Decline
Health Services adjusted operating income was approximately $1.5 billion in Q1, down about 7% year-over-year, driven primarily by continued pharmacy client price improvements (partially offset by better purchasing economics and drug mix).
Read all updates
Q1-2026 Updates
Positive
Negative
Top-Line Revenue Growth
Enterprise revenue of over $100 billion in Q1 2026, up more than 6% year-over-year, driven by growth across all operating segments; full-year revenue now expected to be at least $405 billion.
Read all positive updates
Company Guidance
CVS raised its full‑year 2026 adjusted EPS guidance to $7.30–$7.50 (from $7.00–$7.20) and now expects total revenues of at least $405 billion and cash flow from operations of at least $9.5 billion; enterprise adjusted operating income is guided to $15.53–$15.87 billion with a roughly 60/40 first‑half/second‑half earnings split. Segment guidance includes Health Care Benefits adjusted operating income of ~$4.0–$4.34 billion with a medical benefit ratio expected around 90.5% ±50 bps, and Pharmacy & Consumer Wellness AOI of at least $6.18 billion (HSS reiterated). Q1 results that underpin the raise: revenue >$100 billion (+>6% YoY), adjusted operating income ≈$5.2 billion (+>12% YoY), adjusted EPS $2.57 (+>14% YoY), cash from operations ≈$4.2 billion, returned ~$850 million in dividends, cash at parent ≈$2.2 billion, leverage 3.84x, and Aetna with ~26 million medical members (down ~600k sequentially).CVS Health Financial Statement Overview
Summary
Income Statement
54
Neutral
Balance Sheet
56
Neutral
Cash Flow
63
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 407.90B | 402.07B | 372.81B | 357.78B | 322.47B | 292.11B |
| Gross Profit | 56.59B | 55.36B | 51.40B | 54.43B | 54.50B | 52.12B |
| EBITDA | 11.13B | 9.86B | 13.68B | 18.20B | 12.35B | 17.53B |
| Net Income | 2.93B | 1.77B | 4.61B | 8.34B | 4.31B | 8.00B |
Balance Sheet | ||||||
| Total Assets | 252.97B | 261.06B | 253.22B | 249.73B | 228.28B | 233.00B |
| Cash, Cash Equivalents and Short-Term Investments | 11.80B | 10.66B | 10.99B | 11.46B | 15.72B | 12.53B |
| Total Debt | 78.34B | 93.59B | 82.92B | 79.39B | 70.73B | 76.00B |
| Total Liabilities | 175.34B | 185.68B | 177.49B | 173.09B | 156.51B | 157.62B |
| Stockholders Equity | 77.46B | 75.21B | 75.56B | 76.46B | 71.47B | 75.08B |
Cash Flow | ||||||
| Free Cash Flow | 7.39B | 7.81B | 6.33B | 10.39B | 13.45B | 15.74B |
| Operating Cash Flow | 10.33B | 10.64B | 9.11B | 13.43B | 16.18B | 18.27B |
| Investing Cash Flow | -5.98B | -5.87B | -7.61B | -20.89B | -5.05B | -5.26B |
| Financing Cash Flow | -4.93B | -4.94B | -1.14B | 2.68B | -10.52B | -11.36B |
CVS Health Technical Analysis
Positive
77.30
Price Trends
91.18
Positive
83.26
Positive
80.06
Positive
Market Momentum
3.46
Negative
71.37
Negative
84.50
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CVS, the sentiment is Positive. The current price of 77.3 is below the 20-day moving average (MA) of 98.02, below the 50-day MA of 91.18, and below the 200-day MA of 80.06, indicating a bullish trend. The MACD of 3.46 indicates Negative momentum. The RSI at 71.37 is Negative, neither overbought nor oversold. The STOCH value of 84.50 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CVS.
CVS Health Risk Analysis
CVS Health disclosed 40 risk factors in its most recent earnings report. CVS Health reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
CVS Health Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $85.82B | 16.50 | 11.95% | 1.99% | 9.44% | -8.53% | |
74 Outperform | $388.59B | 31.66 | 12.40% | 2.69% | 9.67% | -44.84% | |
69 Neutral | $133.13B | 44.84 | 3.87% | 3.41% | 7.68% | -45.09% | |
63 Neutral | $46.08B | 41.47 | 6.19% | 1.38% | 14.08% | -33.82% | |
57 Neutral | $32.46B | -4.92 | -28.72% | ― | 17.02% | -294.77% | |
57 Neutral | $11.97B | 67.71 | 4.44% | ― | 7.72% | -83.64% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
CVS
CVS Health
103.58
36.46
54.31%
CNC
Centene
64.54
7.89
13.93%
HUM
Humana
388.90
139.91
56.19%
MOH
Molina Healthcare
229.54
-76.75
-25.06%
UNH
UnitedHealth
419.82
102.19
32.17%
ELV
Elevance Health
388.03
0.41
0.11%
CVS Health Corporate Events
Business Operations and StrategyExecutive/Board ChangesShareholder Meetings
CVS Health Shareholders Approve New 2026 Incentive Plan
Positive
May 18, 2026
At its May 14, 2026 annual meeting, CVS Health stockholders approved a new 2026 Incentive Compensation Plan to replace the expiring 2017 plan, with the new framework applying to awards granted after that date and reinforcing the company’s lo...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.