CVS Health (CVS) investor relations material

Executive summary

• Q1 2026 revenues reached $100.4 billion, up 6.2% year-over-year, with adjusted EPS of $2.57 and GAAP EPS of $2.30, reflecting strong growth across all segments.

• Net income rose 65.9% to $2.96 billion, and operating income increased 38.7% due to improved segment performance and absence of prior-year charges.

• Strategic focus on affordability, seamless healthcare, and technology/AI investments, with initiatives like Health100 and biosimilar adoption.

• Full-year 2026 guidance raised for adjusted EPS ($7.30–$7.50), GAAP EPS ($6.24–$6.44), and cash flow from operations (at least $9.5 billion).

• Returned nearly $850 million to shareholders via dividends in Q1.

Financial highlights

• Q1 2026 total revenues were $100.4 billion, up from $94.6 billion in Q1 2025.

• Adjusted operating income rose 12.5% to $5.15 billion, driven by Health Care Benefits improvement.

• Net income for Q1 2026 was $2.96 billion, up from $1.78 billion in Q1 2025.

• Cash flow from operations was $4.25 billion for the quarter.

• Health Care Benefits revenue was $36.0 billion (+3.3% YoY); Health Services $48.2 billion (+11% YoY); Pharmacy & Consumer Wellness $32.0 billion (flat YoY).

Outlook and guidance

• Full-year 2026 adjusted EPS guidance raised to $7.30–$7.50; GAAP diluted EPS to $6.24–$6.44.

• Full-year revenue expected to be at least $405 billion; cash flow from operations at least $9.5 billion.

• Health Care Benefits AOI guidance increased to $4.0–$4.34 billion; MBR expected at 90.5% ±50bps.

• Pharmacy & Consumer Wellness AOI guidance raised to at least $6.18 billion.

• Guidance reflects strength in Health Care Benefits and Pharmacy & Consumer Wellness, with caution due to elevated cost trends and macro headwinds.