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CVS vs. WMT: Which Retail Pharmacy Powerhouse Looks Stronger Now?

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Key Takeaways

  • CVS posted record Q3 revenues of $103B with growth across all business segments.
  • WMT delivered Q3 gains led by strong International sales and robust e-commerce growth.
  • CVS raised its 2025 revenue and EPS outlook, while WMT lifted its full-year sales forecast.

CVS Health (CVS - Free Report) and Walmart (WMT - Free Report) are two leading names in the U.S. Retail Pharmacy market. CVS benefits from the strength of its diversified business, operating nearly 9,000 retail pharmacy locations, more than 1,000 walk-in and primary care medical clinics and also a pharmacy benefits manager. Walmart, a people-led, tech-powered omnichannel retailer, runs retail and wholesale stores and clubs, as well as eCommerce websites and mobile applications. The company will move its stock listing to Nasdaq, effective Dec. 9, retaining its current ticker.

Let’s compare the two stocks metric by metric, based on their latest quarterly performance.

CVS vs. WMT: Revenue Performance

CVS Health reported third-quarter 2025 revenues of $103 billion, setting a new record and surpassing the Zacks Consensus Estimate by 17.65%. The 8% year-over-year growth was driven by solid contributions from all segments. Health Care Delivery business revenues grew nearly 25%, driven by patient growth at Oak Street and increased volumes at Signify Health. Pharmacy & Consumer Wellness revenues increased nearly 12%, supported by pharmacy drug mix and higher prescription volume from the company’s acquisition of certain Rite Aid pharmacies.

Walmart also had a strong fiscal 2026 third quarter, posting consolidated revenues of $179.5 billion, up 6% in constant currency and topped the Zacks Consensus Estimate by 1.33%. The International segment led the way with an 11.4% sales increase in constant currency, and strength in Flipkart, China and Walmex. E-commerce sales jumped 27% in total, with all three segments — Walmart U.S., Walmart International and Sam's Club U.S. — achieving e-commerce growth above 20%. Globally, advertising grew 53%, including VIZIO, and membership income was up 17%.

How Does Profitability Compare for CVS and WMT?

In the third quarter of 2025, CVS’ adjusted operating income reached approximately $3.5 billion, up 36% year over year, mainly due to Health Care Benefits improvements. The medical benefit ratio (MBR) decreased to 92.8% compared with 95.2% a year ago, driven by the favorable impact of premium deficiency reserves, prior period development and improved Government business performance. Adjusted earnings per share (EPS) came in at $1.60, nearly 47% higher than the prior-year quarter and 17.65% above the Zacks Consensus Estimate.

CVS Health Corporation Price, Consensus and EPS Surprise

CVS Health Corporation Price, Consensus and EPS Surprise

CVS Health Corporation price-consensus-eps-surprise-chart | CVS Health Corporation Quote

Walmart’s fiscal 2026 third-quarter adjusted operating income increased 8% in constant currency, growing faster than sales across each of its operating segments. International delivered strong operating income growth of nearly 17%, reflecting contributions from business mix, improved e-commerce economics and growth of membership income, while both of the U.S. segments posted mid-single-digit growth. The company’s adjusted EPS rose 7% year over year to 62 cents, also exceeding the Zacks Consensus Estimate by 1.64%.

Walmart Inc. Price, Consensus and EPS Surprise

Walmart Inc. Price, Consensus and EPS Surprise

Walmart Inc. price-consensus-eps-surprise-chart | Walmart Inc. Quote

CVS & WMT: Financial Health Snapshot

CVS generated operating cash flows of approximately $7.2 billion year to date through the third quarter of 2025, with roughly $2.3 billion of cash at the parent and unrestricted subsidiaries. Total debt reported was $65.84 billion. The company has consistently paid quarterly dividends since going public, distributing nearly $2.6 billion to shareholders so far this year. 

As of the end of the third quarter of fiscal 2026, Walmart reported $10.6 billion in cash and cash equivalents. Net cash provided by operating activities totaled $27.5 billion, up $4.5 billion from the year-ago period. Total debt came in at $53.1 billion. Year to date, the company has returned nearly $13 billion to its shareholders through dividends and share repurchases.

How the Rest of the Year Looks for CVS & WMT

CVS Health, keeping a prudent outlook on medical cost trends and macro factors, now expects revenues of at least $397 billion for 2025 — an increase of nearly $6 billion. Adjusted EPS is expected between $6.55 and $6.65, up from the prior $6.30-$6.40 range. Full-year adjusted operating income is projected within $14.14 billion-$14.31 billion. Furthermore, the company’s updated flow from operations guidance is in the range of $7.5 billion-$8.0 billion, up from at least $7.5 billion earlier.

Walmart forecasts fiscal 2026 constant-currency sales to grow between 4.8% and 5.1%, up from the prior 3.75%-4.75% range. Full-year operating income is projected to increase 4.8% to 5.5% on a constant-currency basis. Despite 150-basis points of headwinds from the VIZIO acquisition, lapping leap year and higher-than-expected claims expense, the company still expects operating income to outpace sales. Walmart now forecasts adjusted EPS to land between $2.58 and $2.63, the previous forecast being $2.52 to $2.62.

CVS vs. WMT: Price Performance and Valuation

Year to date, CVS shares have surged 73.5%, well above Walmart’s 15.4% growth.

Zacks Investment Research
Image Source: Zacks Investment Research

Based on the forward, five-year price-to-sales (P/S) ratio, CVS Health is trading at 0.24, below its median and Walmart’s P/S of 1.13. 

Zacks Investment Research
Image Source: Zacks Investment Research

Estimate Trend for CVS and WMT

The Zacks Consensus Estimate for CVS Health’s 2025 EPS implies year-over-year growth of 22.1% to $6.62. Estimates have jumped 4.1% in the past 60 days.

Zacks Investment Research
Image Source: Zacks Investment Research

Meanwhile, the consensus mark for Walmart’s fiscal 2026 EPS has edged up 0.8% to $2.62 in the past 60 days. The estimate represents a 4.4% increase over fiscal 2025. 

Zacks Investment Research
Image Source: Zacks Investment Research

CVS or WMT: Which One to Pick?

Both companies are positioned to remain major players in the retail pharmacy space. CVS has demonstrated solid momentum with its third-quarter results, along with upbeat guidance as it closes the year. Walmart’s International segment continues to lift its growth rate, with consistently impressive e-commerce performance. Analysts are also bullish on both companies, as seen in their rising earnings estimates. That said, CVS appears to have an edge now, given its impressive YTD performance and relatively cheaper valuation.

CVS and WMT each carry a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.


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