CVS Health Q3 2026 earnings review

Adjusted EPS of $2.09 beat the Zacks consensus by 29.0%, and CVS raised its 2026 outlook.

CVS Health (CVS) · Q3 2026 · Published Nov 4, 2026 · By DeepCell AI · Sources

CVS Health Q3 2026 earnings review

Quarter ended September 30, 2026

For information only, not investment advice. No rating or price target.

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1 · CVS Health (CVS) Q3 2026 earnings review

Adjusted EPS of $2.09 beat the Zacks consensus by 29.0%, and CVS raised its 2026 outlook

  1. 1.Revenue rose 5.4% to $108,399M, above the Zacks consensus of $105,040M
  2. 2.Adjusted EPS of $2.09 topped Zacks at $1.62 and LSEG at $1.65; GAAP diluted EPS was $1.68
  3. 3.2026 adjusted EPS guidance rose to at least $8.20 from $7.90–$8.10
  4. 4.The medical benefit ratio fell 150 bps to 91.3%
  5. 5.Shares fell 11.8% by 10:27 AM ET on Nov 4; CNBC tied the fall to the planned split

Note: Adjusted figures follow the company reconciliation. The 10:27 AM ET price (CNBC) is intraday, not a close.Source: CVS Health Form 8-K, Nov 4, 2026; Zacks via AP and Yahoo Finance, Nov 4, 2026; LSEG via Reuters and NBC News, Nov 4, 2026; CNBC, Nov 4, 2026; analysis of company data

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2 · Executive summary

Q3 revenue beat the Zacks consensus by 3.2%, and adjusted EPS beat by 29.0%

Q3 2026 results vs. consensus

MetricActualConsensusVarianceResult
Revenue vs. Zacks, Nov 4$108,399M$105,040M+$3,359M / +3.2%Beat
Adjusted EPS vs. Zacks, Nov 4$2.09$1.62+$0.47 / +29.0%Beat
Adjusted EPS vs. LSEG, Nov 4$2.09$1.65+$0.44 / +26.7%Beat

Share price, Nov 3 to Nov 4, 2026

MeasureNov 3 closeNov 4, 10:27 AM ETChange
CVS Health (NYSE)$91.41$80.61-11.8%

Note: Zacks: nine analysts for EPS, seven for revenue. The Nov 4 price is CNBC intraday at 10:27 AM ET, not a close.Source: CVS Health Form 8-K, Nov 4, 2026; Zacks via AP and Yahoo Finance, Nov 4, 2026; LSEG via Reuters and NBC News, Nov 4, 2026; CNBC quote, Nov 4, 2026; analysis of company data

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3 · Q3 results vs. consensus

2026 adjusted EPS guidance of at least $8.20 sits 2.2% above the Zacks consensus

FY2026 guidance floor vs. Zacks consensus, Nov 4

MetricGuidanceConsensusVariancevs. Street
FY2026 revenue$420,000M$418,170M+$1,830M / +0.4%Above
FY2026 adjusted EPS$8.20$8.02+$0.18 / +2.2%Above

FY2026 guidance, Aug 5 vs. Nov 4

MetricAug 5Nov 4Change
GAAP diluted EPS$6.84–$7.04At least $6.98+$0.04
Adjusted EPS$7.90–$8.10At least $8.20+$0.20
Total revenuesAt least $414,000MAt least $420,000M+$6,000M
Operating cash flowAt least $11,500MAt least $15,500M+$4,000M

Note: Guidance values are floors. EPS change is vs. the prior range midpoint.Source: CVS Health Form 8-K, Nov 4, 2026; CVS Health Form 8-K, Aug 5, 2026 (prior guidance, six-month cash flow); Zacks via Yahoo Finance, Nov 4, 2026; analysis of company data

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4 · Guidance vs. consensus

Revenue rose 5.4%, and adjusted operating income rose 21.2% to $4,194M

  1. GAAP results swung to a profitQ3 2025 included a $5,725M goodwill impairment that did not recur.
  2. Adjusted EPS rose faster than revenueAdjusted EPS rose 30.6% to $2.09.
  3. One charge was excludedAdjusted results exclude a $193M Omnicare charge.

Key figures in $M and YoY % for Q3 2026 vs. Q3 2025

$M unless notedQ3 2025Q3 2026YoY
Total revenues$102,871M$108,399M5.4%
Adjusted operating income$3,459M$4,194M21.2%
Net income (loss)($3,990M)$2,171Mn.m.
Diluted EPS($3.13)$1.68n.m.
Adjusted EPS$1.60$2.0930.6%

Note: n.m. means not meaningful (prior-year loss). Adjusted figures are company non-GAAP measures.Source: CVS Health Form 8-K, Nov 4, 2026; analysis of company data

5

5 · Q3 key financials

Health Services revenue rose 9.5%, while Pharmacy & Consumer Wellness fell 2.0%

Revenue by segment

$M unless noted, Q3 2025 vs. Q3 2026

SegmentQ3 2025Q3 2026YoY
Health Care Benefits$35,993M$36,855M2.4%
Health Services$49,266M$53,964M9.5%
Pharmacy & Consumer Wellness$36,214M$35,498M(2.0%)
Corporate/Other$133M$205Mn.m.
Eliminations($18,735M)($18,123M)n.m.
Total revenues$102,871M$108,399M5.4%
Health Services revenue rose on drug mix and brand inflation; Pharmacy revenue fell on drug price cuts and new generics“Through their continued dedication, each of our businesses delivered another quarter of strong results.” David Joyner, Chairman and CEO

Note: Eliminations remove intersegment revenue. Corporate/Other YoY is not meaningful (n.m.).Source: CVS Health Form 8-K, Nov 4, 2026; analysis of company data

6

6 · Segment results

Health Services supplied 85% of the $5,528M revenue increase

Revenue change by segment

$M, Q3 2025 to Q3 2026

$M · Benefits: $862.0M$M · Services: $4,698.0M$M · Pharmacy: -$716.0M$M · Corporate: $72.0M$M · Eliminations: $612.0M$M · Total: $5,528.0MBenefitsServicesPharmacyCorporateEliminationsTotal$0M$2,000M$4,000M$6,000M$7,000M$862.0M$4,698.0M-$716.0M$72.0M$612.0M$5,528.0M
Health Services revenue rose $4,698M, and Pharmacy & Consumer Wellness fell $716M

Note: Bars are each segment’s YoY revenue change and sum to the total. Benefits is Health Care Benefits, Services is Health Services, Pharmacy is Pharmacy & Consumer Wellness.Source: CVS Health Form 8-K, Nov 4, 2026; analysis of company data

7

7 · Revenue bridge

Health Care Benefits supplied $598M of the $735M rise in adjusted operating income

Adjusted operating income change by segment

$M, Q3 2025 to Q3 2026

$M · Benefits: $598.0M$M · Services: $56.0M$M · Pharmacy: $157.0M$M · Corporate: -$76.0M$M · Total: $735.0MBenefitsServicesPharmacyCorporateTotal$0M$250M$500M$750M$1,000M$598.0M$56.0M$157.0M-$76.0M$735.0M
Health Care Benefits adjusted operating income rose to $912M from $314M

Note: Bars are YoY changes in segment adjusted operating income and sum to the total. Segment names are shortened.Source: CVS Health Form 8-K, Nov 4, 2026; analysis of company data

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8 · Adjusted operating income bridge

Net income rose to $2,171M from a $3,990M loss as the goodwill impairment did not recur

Net income bridge

$M, Q3 2025 to Q3 2026

$M · Q3 2025: -$3,990.0M$M · Goodwill: $5,725.0M$M · Operations: $1,048.0M$M · Prior gain: -$483.0M$M · Interest: $37.0M$M · Other: $4.0M$M · Taxes: -$170.0M$M · Q3 2026: $2,171.0MQ3 2025GoodwillOperationsPrior gainInterestOtherTaxesQ3 2026-$5,000M-$2,500M$0M$2,500M$4,000M-$3,990.0M$5,725.0M$1,048.0M-$483.0M$37.0M$4.0M-$170.0M$2,171.0M
Excluding goodwill, operating income rose $1,048M

Note: Steps are YoY changes. The 2025 deconsolidation gain and higher taxes are reductions.Source: CVS Health Form 8-K, Nov 4, 2026; analysis of company data

9

9 · Net income bridge

Health Care Benefits adjusted operating margin rose to 2.5% as the MBR fell 150 bps

Adjusted operating margin by segment

% of segment revenue, Q3 2025 vs. Q3 2026

Health Care Benefits · Q3 2025: 0.9%Health Care Benefits · Q3 2026: 2.5%Health Services · Q3 2025: 4.2%Health Services · Q3 2026: 3.9%Pharmacy & Consumer Wellness · Q3 2025: 4.1%Pharmacy & Consumer Wellness · Q3 2026: 4.6%Total company · Q3 2025: 3.4%Total company · Q3 2026: 3.9%Q3 2025Q3 20260.0%2.0%4.0%6.0%0.9%2.5%4.2%3.9%4.1%4.6%3.4%3.9%

Health Care BenefitsHealth ServicesPharmacy & Consumer WellnessTotal company

The MBR fell to 91.3% from 92.8%

Note: MBR is medical benefit ratio. Margin is segment adjusted operating income over segment revenue. MBR is health care costs over premiums.Source: CVS Health Form 8-K, Nov 4, 2026; analysis of company data

10

10 · Segment margins

Nine-month operating cash flow rose 111.3% to $15,318M

Operating cash flow to free cash flow

$M, nine months 2026

$M · Operating CF: $15,318.0M$M · Capex: $2,357.0M$M · FCF: $12,961.0MOperating CFCapexFCF$0M$5,000M$10,000M$15,000M$18,000M$15,318.0M$2,357.0M$12,961.0M
Q3 operating cash flow was $4,724M, vs. $796M a year earlier

Note: FCF is operating cash flow less purchases of property and equipment. Q3 is nine months less six months.Source: CVS Health Form 8-K, Nov 4, 2026; CVS Health Form 8-K, Aug 5, 2026 (prior guidance, six-month cash flow); analysis of company data

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11 · Free cash flow

Government premiums rose 8.2%, while Commercial premiums fell 16.9%

Health Care Benefits premiums and metrics

$M unless noted, Q3 2025 vs. Q3 2026

MetricQ3 2025Q3 2026YoY
Government premiums$25,968M$28,108M8.2%
Commercial premiums$7,771M$6,461M(16.9%)
Medical benefit ratio92.8%91.3%-150 bps
Medical membership (thousands)26,70026,100(2.2%)
Days claims payable42.541.9n.m.
Prior years’ claims estimates developed favorably by $1,300M in the nine months

Note: Commercial premiums fell after the exit from the individual exchange business in 2026. Membership is at Sep 30.Source: CVS Health Form 8-K, Nov 4, 2026; analysis of company data

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12 · Premiums and membership

Total debt fell $3,890M since Dec 31 to $60,680M

Cash, debt and equity

$M, Dec 31, 2025 vs. Sep 30, 2026

$MDec 31, 2025Sep 30, 2026
Cash and cash equivalents$8,453M$11,738M
Total debt$64,570M$60,680M
Total debt less cash$56,117M$48,942M
Total shareholders’ equity$75,382M$80,689M
The CFO said CVS reached its leverage goal early and will resume share buybacks in Q4

Note: Total debt is the current portion plus long-term debt. The buyback comment is from the earnings call.Source: CVS Health Form 8-K, Nov 4, 2026; CVS Health Q3 2026 earnings call, Nov 4, 2026 (Investing.com transcript); analysis of company data

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13 · Balance sheet and debt

2026 guidance implies Q4 adjusted EPS of at least $0.96, below Q3 at $2.09

Indicator
What to watch
Implication
Q3 reading
Medical costs
Trend stays above history
Higher MBR
Q3 MBR 91.3%
Health Services
340B and client losses
2027 is the low point
2027 floor $7,000M
Separation
Costs and dis-synergies
Split due in H1 2028
Debt $60,680M
Pharmacy revenue
Drug price cuts
Lower revenue
PCW revenue (2.0%) YoY

Note: MBR is medical benefit ratio. These are analytical watch points, not company targets. The 2027 floor is from the earnings call.Source: CVS Health Form 8-K, Nov 4, 2026; CVS Health Q3 2026 earnings call, Nov 4, 2026 (Investing.com transcript); analysis of company data

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14 · Key risks to guidance

Appendix: segment operating detail

ClaimEvidenceCalculation
Claims grew slowlyPharmacy claims 1.3% YoY to 481.7MSegment table
Prescriptions rosePrescriptions filled 1.9% YoY to 470.0MSegment table
Adjusted profit rosePCW adjusted operating income 10.6% YoYSegment table
Corporate loss widenedCorporate/Other loss $459M vs. $383MSegment table

Source: CVS Health Form 8-K, Nov 4, 2026; analysis of company data

15

15 · Appendix: Segment detail

Appendix: profit and margin detail

ClaimEvidenceCalculation
Adjusted operating margin roseAdjusted operating margin 3.4% to 3.9%Adjusted operating income over revenue
Cost of products roseCost of products sold 7.3% YoYIncome statement
Adjusted income roseAdjusted income $2,697M, up 32.4%Company reconciliation
Tax rate in Q3Effective tax rate 23.8%Tax over pretax income

Source: CVS Health Form 8-K, Nov 4, 2026; analysis of company data

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16 · Appendix: Profit and margins

Appendix: guidance and cash detail

ClaimEvidenceCalculation
Segment outlook raisedHealth Care Benefits at least $5,400M; Pharmacy at least $6,500MEarnings call
2027 EPS floor set2027 adjusted EPS at least $8.65Earnings call
Free cash flow roseNine-month FCF $12,961M vs. $5,201MOperating cash flow less capex
Dividends steadyDividends paid $2,578M in nine monthsCash flow statement

Source: CVS Health Form 8-K, Nov 4, 2026; CVS Health Q3 2026 earnings call, Nov 4, 2026 (Investing.com transcript); CVS Health Form 8-K, Aug 5, 2026 (prior guidance, six-month cash flow); analysis of company data

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17 · Appendix: Guidance and cash

Appendix: planned separation into two companies

ClaimEvidenceCalculation
Healthcare company keeps the PBMAetna, CVS Caremark, Specialty, Oak Street, SignifyLed by David Joyner
CVS Pharmacy is spun outAbout 9,000 pharmacies, mail, MinuteClinicLed by Prem Shah
Completion due in H1 2028Intended to be tax-freeSubject to final board approval
Both to be investment gradeBuybacks resume in Q4 2026Earnings call

PBM is pharmacy benefit manager. Source: CVS Health Form 8-K (Item 7.01), Nov 4, 2026; CVS Health Q3 2026 earnings call, Nov 4, 2026 (Investing.com transcript)

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18 · Appendix: Separation plan

Appendix: operating cost and non-GAAP detail

Operating costs, $M and YoY %

$M unless notedQ3 2025Q3 2026YoY
Cost of products sold$57,045M$61,185M7.3%
Health care costs$32,020M$32,316M0.9%
Operating expenses$11,288M$11,332M0.4%
Goodwill impairment$5,725M$0Mn.m.

Adjusted results, $M and YoY %

$M unless notedQ3 2025Q3 2026YoY
Amortization of intangible assets$500M$425Mn.m.
Adjusted operating income$3,459M$4,194M21.2%
Adjusted income$2,037M$2,697M32.4%
Adjusted EPS ($)$1.60$2.0930.6%

Note: Adjusted measures exclude amortization, capital gains and losses, integration costs and other items, net of tax.Source: CVS Health Form 8-K, Nov 4, 2026; analysis of company data

19

19 · Appendix: Costs and non-GAAP

Appendix: sources

  • Filing: CVS Health Form 8-K, Nov 4, 2026 — https://www.sec.gov/Archives/edgar/data/64803/000006480326000107/0000064803-26-000107-index.htm
  • Earnings release, Q3 2026 (Ex. 99.1) — https://www.sec.gov/Archives/edgar/data/64803/000006480326000107/cvs_ex99x1q3-26.htm
  • Separation announcement: Form 8-K Item 7.01 (Ex. 99.1), Nov 4, 2026 — https://www.sec.gov/Archives/edgar/data/64803/000119312526446150/d148827dex991.htm
  • Prior guidance and six-month cash flow: Q2 2026 release (Ex. 99.1), Aug 5, 2026 — https://www.sec.gov/Archives/edgar/data/64803/000006480326000097/cvs_ex99x1q2-26.htm
  • Earnings call transcript, Investing.com, Nov 4, 2026 — https://www.investing.com/news/transcripts/earnings-call-transcript-cvs-health-beats-q3-2026-estimates-shares-fall-premarket-93CH-4999860
  • Q3 consensus: Zacks via AP and Yahoo Finance, Nov 4, 2026 — https://finance.yahoo.com/healthcare/articles/cvs-health-q3-earnings-snapshot-113939186.html; LSEG via Reuters and NBC News — https://www.nbcnews.com/business/consumer/cvs-health-split-pharmacy-insurance-rcna607421
  • FY2026 consensus: Zacks via Yahoo Finance, Nov 4, 2026 — https://finance.yahoo.com/healthcare/articles/cvs-health-cvs-beats-q3-115002518.html
  • Share price: CNBC CVS quote, Nov 3 close and Nov 4 intraday at 10:27 AM ET — https://www.cnbc.com/quotes/CVS; reason: CNBC, Nov 4, 2026 — https://www.cnbc.com/2026/11/04/cvs-to-split-off-drugstore-business.html

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20 · Sources

Important disclosures and disclaimer

For information only. This presentation is provided for information only. It is not investment, legal, tax or accounting advice, and it is not an offer, or a solicitation of an offer, to buy or sell any security.

No recommendation. It carries no rating, price target or buy, sell or hold view, and it was prepared without regard to any reader's investment objectives, financial situation or needs.

Sources and accuracy. Company figures come from CVS Health's Forms 8-K of November 4, 2026 (Exhibit 99.1 and Item 7.01) and, for prior guidance and six-month cash flow, its Form 8-K of August 5, 2026. Call remarks, consensus estimates and share prices are third-party data, credited on the sources page. We have not independently verified third-party data and make no warranty that any information here is accurate, complete or timely.

Forward-looking statements. Company guidance, the planned separation, consensus estimates and the watch items in this deck are forward-looking. They rest on assumptions that may prove wrong, and actual results may differ materially.

Past performance. Past results, including those for Q3 2026, are not a reliable indicator of future results.

Non-GAAP measures. Adjusted operating income, adjusted EPS and free cash flow follow CVS Health's own definitions or our stated formula. They supplement, and do not replace, GAAP results, and they may not be comparable with other companies' measures. The earnings release reconciles them to GAAP.

No liability. No liability is accepted for any direct or indirect loss arising from the use of this presentation or its contents.

No affiliation. This presentation is not affiliated with, reviewed or endorsed by CVS Health Corporation and does not represent its views. Company and brand names belong to their owners.

How it was made. The deck was built with DeepCell, with figures linked to a model in the file. Readers should check the figures against the original filings and consult a qualified professional adviser before making any investment decision.

Date of analysis. The analysis reflects information available as of the morning of November 4, 2026, US Eastern time, during the regular session. It will not be updated for later events, and views may change without notice.

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