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Why Is CVS Health (CVS) Down 1.7% Since Last Earnings Report?
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A month has gone by since the last earnings report for CVS Health (CVS - Free Report) . Shares have lost about 1.7% in that time frame, outperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is CVS Health due for a breakout? Well, first let's take a quick look at its latest earnings report in order to get a better handle on the recent drivers for CVS Health Corporation before we dive into how investors and analysts have reacted as of late.
CVS Health Tops Q4 Earnings and Revenue Estimates
CVS Health posted fourth-quarter 2025 adjusted earnings per share of $1.09, down 8.4% year over year. The metric, however, topped the Zacks Consensus Estimate by 10.1%. The adjusted EPS figure considers certain asset amortization costs, acquisition-related integration costs and other adjustments.
On a reported basis, the company’s fourth-quarter GAAP earnings were $2.30 per share, up 76.9% year over year.
Full-year adjusted earnings per share was $6.75, increasing 24.5% from 2024 and beating the Zacks Consensus Estimate by 1.5%.
Revenues
Revenues rose 8.2% year over year to $105.69 billion. The top line surpassed the Zacks Consensus Estimate by 2.2%. This year-over-year upside was driven by revenue growth across all segments.
For 2025, total revenues came in at $402.07 billion, rising 7.8% from 2024 and exceeding the Zacks Consensus Estimate by 0.6%.
Detailed Analysis of CVS’ Q4 Revenues
Health Services revenues increased 9% year over year to $51.24 billion, mainly driven by pharmacy drug mix and brand inflation, partially offset by continued pharmacy client price improvements.
Total pharmacy claims processed fell 7.5% on a 30-day equivalent basis compared with the prior-year level.
Revenues in the Pharmacy & Consumer Wellness segment rose 12.4% year over year to $37.66 billion. The upside was primarily driven by the pharmacy drug mix and increased prescription volume, including incremental volume resulting from the company’s Rite Aid prescription file acquisitions, partially offset by continued pharmacy reimbursement pressure and the impact of recent generic drug introductions.
Within the Health Care Benefits segment, the company registered revenues worth $36.29 billion, up 10.1% year over year. This upside was driven by increases in the Government business, largely due to the impact of the Inflation Reduction Act on the Medicare Part D program.
CVS’ Margin Performance
The combined cost of products sold and healthcare costs rose 8.6% to $92.13 billion in the fourth quarter. Gross profit jumped 5.2% to $13.57 billion. Yet the gross margin contracted 37 basis points (bps) to 12.8%.
Adjusted operating margin in the quarter under review contracted 44 bps to 1.9% despite an 8.9% rise in total operating expenses ($11.46 billion).
Liquidity Position of CVS
CVS Health exited 2025 with cash and cash equivalents of $8.45 billion compared with $8.59 billion at the end of 2024. The long-term debt was $64.57 billion compared with $64.15 billion in the previous quarter.
The cumulative net cash provided by operating activities at the end of the fourth quarter of 2025 was $10.64 billion, compared with $9.11 billion in the year-ago period.
CVS’ 2026 Guidance
CVS Health issued its 2026 adjusted earnings per share guidance in the range of $7.00-$7.20. The Zacks Consensus Estimate for the metric is currently pegged at $7.15.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a upward trend in estimates revision.
VGM Scores
Currently, CVS Health has a nice Growth Score of B, though it is lagging a bit on the Momentum Score front with a C. However, the stock was allocated a score of A on the value side, putting it in the top quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending upward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, CVS Health has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
CVS Health belongs to the Zacks Medical Services industry. Another stock from the same industry, HCA Healthcare (HCA - Free Report) , has gained 1.1% over the past month. More than a month has passed since the company reported results for the quarter ended December 2025.
HCA reported revenues of $19.51 billion in the last reported quarter, representing a year-over-year change of +6.7%. EPS of $8.01 for the same period compares with $6.22 a year ago.
HCA is expected to post earnings of $7.19 per share for the current quarter, representing a year-over-year change of +11.5%. Over the last 30 days, the Zacks Consensus Estimate has changed +0.3%.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for HCA. Also, the stock has a VGM Score of A.
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Why Is CVS Health (CVS) Down 1.7% Since Last Earnings Report?
A month has gone by since the last earnings report for CVS Health (CVS - Free Report) . Shares have lost about 1.7% in that time frame, outperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is CVS Health due for a breakout? Well, first let's take a quick look at its latest earnings report in order to get a better handle on the recent drivers for CVS Health Corporation before we dive into how investors and analysts have reacted as of late.
CVS Health Tops Q4 Earnings and Revenue Estimates
CVS Health posted fourth-quarter 2025 adjusted earnings per share of $1.09, down 8.4% year over year. The metric, however, topped the Zacks Consensus Estimate by 10.1%. The adjusted EPS figure considers certain asset amortization costs, acquisition-related integration costs and other adjustments.
On a reported basis, the company’s fourth-quarter GAAP earnings were $2.30 per share, up 76.9% year over year.
Full-year adjusted earnings per share was $6.75, increasing 24.5% from 2024 and beating the Zacks Consensus Estimate by 1.5%.
Revenues
Revenues rose 8.2% year over year to $105.69 billion. The top line surpassed the Zacks Consensus Estimate by 2.2%. This year-over-year upside was driven by revenue growth across all segments.
For 2025, total revenues came in at $402.07 billion, rising 7.8% from 2024 and exceeding the Zacks Consensus Estimate by 0.6%.
Detailed Analysis of CVS’ Q4 Revenues
Health Services revenues increased 9% year over year to $51.24 billion, mainly driven by pharmacy drug mix and brand inflation, partially offset by continued pharmacy client price improvements.
Total pharmacy claims processed fell 7.5% on a 30-day equivalent basis compared with the prior-year level.
Revenues in the Pharmacy & Consumer Wellness segment rose 12.4% year over year to $37.66 billion. The upside was primarily driven by the pharmacy drug mix and increased prescription volume, including incremental volume resulting from the company’s Rite Aid prescription file acquisitions, partially offset by continued pharmacy reimbursement pressure and the impact of recent generic drug introductions.
Within the Health Care Benefits segment, the company registered revenues worth $36.29 billion, up 10.1% year over year. This upside was driven by increases in the Government business, largely due to the impact of the Inflation Reduction Act on the Medicare Part D program.
CVS’ Margin Performance
The combined cost of products sold and healthcare costs rose 8.6% to $92.13 billion in the fourth quarter. Gross profit jumped 5.2% to $13.57 billion. Yet the gross margin contracted 37 basis points (bps) to 12.8%.
Adjusted operating margin in the quarter under review contracted 44 bps to 1.9% despite an 8.9% rise in total operating expenses ($11.46 billion).
Liquidity Position of CVS
CVS Health exited 2025 with cash and cash equivalents of $8.45 billion compared with $8.59 billion at the end of 2024. The long-term debt was $64.57 billion compared with $64.15 billion in the previous quarter.
The cumulative net cash provided by operating activities at the end of the fourth quarter of 2025 was $10.64 billion, compared with $9.11 billion in the year-ago period.
CVS’ 2026 Guidance
CVS Health issued its 2026 adjusted earnings per share guidance in the range of $7.00-$7.20. The Zacks Consensus Estimate for the metric is currently pegged at $7.15.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a upward trend in estimates revision.
VGM Scores
Currently, CVS Health has a nice Growth Score of B, though it is lagging a bit on the Momentum Score front with a C. However, the stock was allocated a score of A on the value side, putting it in the top quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending upward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, CVS Health has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
CVS Health belongs to the Zacks Medical Services industry. Another stock from the same industry, HCA Healthcare (HCA - Free Report) , has gained 1.1% over the past month. More than a month has passed since the company reported results for the quarter ended December 2025.
HCA reported revenues of $19.51 billion in the last reported quarter, representing a year-over-year change of +6.7%. EPS of $8.01 for the same period compares with $6.22 a year ago.
HCA is expected to post earnings of $7.19 per share for the current quarter, representing a year-over-year change of +11.5%. Over the last 30 days, the Zacks Consensus Estimate has changed +0.3%.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for HCA. Also, the stock has a VGM Score of A.