CVS Health Corp (CVS)
NYSE:CVS
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CVS Health
(NYSE:CVS)
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Rating:53Neutral
Price Target:
$80.00
▲(3.49% Upside)
Action:ReiteratedDate:03/20/26
The score is held back primarily by sharply weakened profitability and a meaningfully levered profile despite solid cash generation. Technicals are bearish and the P/E is high relative to current earnings power, partially offset by a supportive dividend yield. The latest earnings call was constructive with reaffirmed 2026 guidance and operational momentum, but notable medical cost and Medicare Advantage rate risks remain.
Positive Factors
Vertically integrated business model
CVS’s integration of PBM, insurance, retail pharmacies and care delivery creates durable competitive advantages: coordinated care, cross-selling, formulary and rebate negotiation scale, and ability to steer patients into lower-cost settings. These structural levers support sustained revenue synergies and margin recovery over multiple quarters.
Negative Factors
Deteriorated profitability
Sharp profit compression reduces internal capacity to de-lever, invest in growth, and sustain returns. Low net margins make earnings sensitive to medical cost swings and reimbursement shifts; without sustained margin improvement the company faces prolonged pressure on ROE and cash available for strategic uses over several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Vertically integrated business model
CVS’s integration of PBM, insurance, retail pharmacies and care delivery creates durable competitive advantages: coordinated care, cross-selling, formulary and rebate negotiation scale, and ability to steer patients into lower-cost settings. These structural levers support sustained revenue synergies and margin recovery over multiple quarters.
Read all positive factors
CVS Health (CVS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$99.89B
Dividend Yield3.41%
Average Volume (3M)7.31M
Price to Earnings (P/E)56.9
Beta (1Y)0.51
Revenue Growth6.71%
EPS Growth-90.11%
CountryUS
Employees300,000
SectorHealthcare
Sector Strength45
IndustryMedical - Healthcare Plans
Share Statistics
EPS (TTM)1.09
Shares Outstanding1,281,604,400
10 Day Avg. Volume8,090,657
30 Day Avg. Volume7,307,609
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 Cap1.84
Enterprise Value/Revenue0.46
Enterprise Value/Gross Profit3.33
Enterprise Value/Ebitda18.68
Forecast
1Y Price Target
$96.27Price Target Upside24.54% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering17
EPS Forecast (FY)7.16
Revenue Forecast (FY)$404.39B
CVS Health Business Overview & Revenue Model
Company Description
CVS Health Corporation provides health services in the United States. The company's Health Care Benefits segment offers traditional, voluntary, and consumer-directed health insurance products and related services. It serves employer groups, indivi...
How the Company Makes Money
CVS Health primarily makes money by generating revenue across three major businesses: (1) retail pharmacy and consumer health operations, (2) pharmacy services (PBM), and (3) health benefits (health insurance), with additional contributions from c...
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 Earnings Call Summary
Earnings Call Date:Feb 10, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 06, 2026
Earnings Call Sentiment Positive
The call highlighted multiple clear operational and financial improvements across the enterprise — strong revenue growth, meaningful EPS and cash‑flow outperformance for 2025, substantial YoY profit recovery at Aetna, robust pharmacy momentum (same‑store and script gains), sizable client savings and strategic wins (cost‑based reimbursement, TrueCost, HUMIRA biosimilar adoption). Key challenges include an unfavorable preliminary 2027 Medicare Advantage rate notice, a Q4 adjusted operating loss in Health Care Benefits driven by Part D seasonality, membership declines in certain blocks, regulatory uncertainty for PBM dynamics and persistent elevated medical cost trends. Overall, the positive operational momentum, reaffirmed 2026 guidance, and improved cash and leverage profile outweigh the headwinds, though management noted material risks they are actively addressing.Positive Updates
Strong FY2025 Financial Performance
Full year 2025 revenue exceeded $400 billion, adjusted EPS of $6.75 (approximately 15% above initial expectations), and operating cash flow of $10.6 billion, meaningfully outperforming initial expectations and demonstrating strong cash generation.
Negative Updates
Medicare Advantage Rate Pressure (2027 Advanced Rate Notice)
Management called the preliminary 2027 Medicare Advantage advanced rate notice 'disappointing' and stated proposed rates do not match current medical cost trends; company is actively advocating with CMS and noted potential margin pressure in MA despite ongoing commitment to margin recovery.
Read all updates
Q4-2025 Updates
Positive
Negative
Strong FY2025 Financial Performance
Full year 2025 revenue exceeded $400 billion, adjusted EPS of $6.75 (approximately 15% above initial expectations), and operating cash flow of $10.6 billion, meaningfully outperforming initial expectations and demonstrating strong cash generation.
Read all positive updates
Company Guidance
CVS reaffirmed full‑year 2026 guidance calling for adjusted EPS of $7.00–$7.20, revenue of at least $400 billion and operating cash flow of at least $9 billion, with an expected roughly 55/45 first‑half/second‑half earnings split and an anticipated Q1‑to‑Q4 medical benefit ratio increase of ~850 basis points; management noted that cumulative cash flow expectations for 2025–2026 have risen by more than $1.5 billion. For context, 2025 results included adjusted EPS of $6.75, revenue of over $400 billion and operating cash flow of $10.6 billion (Q4 cash flow ≈ $3.4 billion), and the company highlighted continued business momentum such as Aetna’s >$2.6 billion year‑over‑year adjusted operating income improvement and Pharmacy & Consumer Wellness delivering >$6 billion of full‑year adjusted operating income with Q4 retail script share >29% and same‑store revenues up ~16%.CVS Health Financial Statement Overview
Summary
Income Statement
44
Neutral
Balance Sheet
56
Neutral
Cash Flow
63
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 402.07B | 372.81B | 357.78B | 322.47B | 292.11B |
| Gross Profit | 55.36B | 51.40B | 54.43B | 54.50B | 52.12B |
| EBITDA | 9.86B | 13.68B | 18.20B | 12.35B | 17.53B |
| Net Income | 1.77B | 4.61B | 8.34B | 4.31B | 8.00B |
Balance Sheet | |||||
| Total Assets | 261.06B | 253.22B | 249.73B | 228.28B | 233.00B |
| Cash, Cash Equivalents and Short-Term Investments | 10.66B | 10.99B | 11.46B | 15.72B | 12.53B |
| Total Debt | 93.59B | 82.92B | 79.39B | 70.73B | 76.00B |
| Total Liabilities | 185.68B | 177.49B | 173.09B | 156.51B | 157.62B |
| Stockholders Equity | 75.21B | 75.56B | 76.46B | 71.47B | 75.08B |
Cash Flow | |||||
| Free Cash Flow | 7.81B | 6.33B | 10.39B | 13.45B | 15.74B |
| Operating Cash Flow | 10.64B | 9.11B | 13.43B | 16.18B | 18.27B |
| Investing Cash Flow | -5.87B | -7.61B | -20.89B | -5.05B | -5.26B |
| Financing Cash Flow | -4.94B | -1.14B | 2.68B | -10.52B | -11.36B |
CVS Health Technical Analysis
Positive
77.30
Price Trends
76.05
Positive
77.11
Positive
74.21
Positive
Market Momentum
0.60
Negative
55.25
Neutral
51.44
Neutral
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 above the 20-day moving average (MA) of 74.51, above the 50-day MA of 76.05, and above the 200-day MA of 74.21, indicating a bullish trend. The MACD of 0.60 indicates Negative momentum. The RSI at 55.25 is Neutral, neither overbought nor oversold. The STOCH value of 51.44 is Neutral, 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 | $74.87B | 9.15 | 13.01% | 1.99% | 11.96% | -11.11% | |
73 Outperform | $322.15B | 9.80 | 12.40% | 2.69% | 10.48% | 24.25% | |
54 Neutral | $9.17B | 121.40 | 4.44% | ― | 13.71% | -18.02% | |
53 Neutral | $99.89B | 56.87 | 2.34% | 3.41% | 6.71% | -90.11% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
51 Neutral | $25.84B | 25.97 | 6.59% | 1.38% | 9.87% | -5.58% | |
50 Neutral | $20.57B | -3.03 | -27.74% | ― | 14.92% | -286.72% |
* Healthcare Sector Average
CVS
CVS Health
77.94
15.30
24.43%
CNC
Centene
41.82
-17.65
-29.68%
HUM
Humana
215.23
-43.88
-16.93%
MOH
Molina Healthcare
175.94
-144.26
-45.05%
UNH
UnitedHealth
354.92
-53.56
-13.11%
ELV
Elevance Health
344.76
-60.41
-14.91%
CVS Health Corporate Events
Executive/Board Changes
CVS Health Adds Veteran Finance Leader to Board
Positive
Mar 19, 2026
On March 18, 2026, CVS Health’s board elected former Elevance Health chief financial officer John E. Gallina as a director, effective March 19, 2026, adding a veteran finance executive with nearly three decades of experience in health benefi...
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.