CVS Health Q2 FY2026: revenue up 7.3%, guidance raised after EPS beat
CVS Health beat on both earnings and revenue and raised full-year guidance, making this a clean quarter. GAAP diluted EPS of $2.31 and adjusted EPS of $2.58 came in well above the $1.8702 consensus estimate, while revenue of $106.096 billion rose 7.3% on the prior year. The margin story is the one to watch: the medical benefit ratio fell to 87.4% as the Health Care Benefits recovery plan took hold.
1 · Expected vs. Actual
Free preview belowGAAP diluted EPS was $2.31, more than double the $0.80 reported a year earlier, and adjusted EPS was $2.58 versus $1.81. Against the $1.8702 consensus estimate, that is a wide beat. Part of the jump comes from the absence of $833 million in legacy litigation charges booked in the prior-year quarter, but adjusted operating income still rose 35.4% on its own.
Revenue came in at $106.096 billion, up 7.3% from $98.915 billion a year earlier, with growth in all three operating segments. Health Services did the heavy lifting at $51.795 billion, up 11.5% from $46.453 billion, while Pharmacy & Consumer Wellness was nearly flat at $33.816 billion. Health Care Benefits added 3.5% to reach $37.538 billion.
Management raised full-year 2026 GAAP diluted EPS guidance to $6.84–$7.04 from $6.24–$6.44 and adjusted EPS to $7.90–$8.10 from $7.30–$7.50. Revenue guidance is at least $414.0 billion, and cash flow from operations guidance went to at least $11.5 billion from at least $9.5 billion. The raise reflects Health Care Benefits and Pharmacy & Consumer Wellness, but the company kept a cautious view in light of continued elevated cost trends.
Log in to read 5 analyses a week for free
Create a free account to read 5 full earnings analyses each week — all five steps: expected vs. actual, guidance tracker, money flow, balance sheet and risks. Members get unlimited access.
Figures on this page come from the company's original SEC filings. The analysis is generated automatically and checked against validation rules, but may still contain errors or omissions. Not investment advice. · Generated 2026-09-17
Answers are based on the earnings release and the analysis above. Free accounts get 3 questions a week; members get 30 a day.