CVS Health Raises 2026 Outlook as Q3 Adjusted EPS Jumps 30.6% to $2.09
CVS Health raised its full-year 2026 outlook after third-quarter adjusted earnings jumped 30.6% to $2.09 per share, according to its 8-K released Wednesday, the same morning the company said it plans to split into two public companies.
Total revenue rose 5.4% to $108.4 billion. GAAP diluted EPS was $1.68, compared with a loss of $3.13 a year earlier, when CVS recorded a $5.7 billion goodwill impairment charge.
Guidance goes up across the board
CVS now expects 2026 GAAP diluted EPS of at least $6.98, up from a prior range of $6.84 to $7.04, and adjusted EPS of at least $8.20, up from $7.90 to $8.10. It lifted its cash flow from operations forecast to at least $15.5 billion from at least $11.5 billion and projects revenue of at least $420.0 billion.
The company said it keeps "a cautious view" for the rest of the year given elevated cost trends and possible macro headwinds. Year-to-date operating cash flow reached $15.3 billion.
Aetna drives the gain
Adjusted operating income rose 21.2% to $4.19 billion, with gains in every segment. The improvement came mainly from the Health Care Benefits segment, where CVS said its margin recovery plan continued. The medical benefit ratio improved to 91.3% from 92.8%, and medical membership held at 26.1 million.
Health Services revenue climbed 9.5% to $53.96 billion, with adjusted operating income up 2.7%. Pharmacy & Consumer Wellness revenue fell 2.0% to $35.50 billion on regulatory price cuts and generic introductions, but its adjusted operating income rose 10.6% to $1.635 billion.
CVS also said more than 69% of Aetna Medicare Advantage members are in 2027 plans rated 4 stars or higher.
Breakup plan
In a separate release, CVS said it intends to separate into a healthcare solutions company built around Aetna, CVS Caremark and CVS Specialty, and a retail pharmacy company named CVS Pharmacy, with completion expected in the first half of 2028.
By the numbers
- Q3 revenue: $108.4 billion, up 5.4%
- Adjusted EPS: $2.09, up 30.6%
- GAAP diluted EPS: $1.68
- 2026 adjusted EPS guidance: at least $8.20
- 2026 operating cash flow guidance: at least $15.5 billion
Sources
- CVS Health Form 8-K with third-quarter 2026 earnings release, filed Nov. 4, 2026 (accession 0000064803-26-000107)
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