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How CVS' Pharmacy & Consumer Wellness Is Positioned for H2 2026
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Key Takeaways
CVS Health's Pharmacy and Consumer Wellness revenues neared $34 billion in the second quarter.
CVS Health's adjusted operating income rose more than 10%, driven by pharmacy strength and Rite Aid.
CVS Health now expects at least $6.4 billion in full-year adjusted operating income.
CVS Health (CVS - Free Report) is building strong momentum in its Pharmacy and Consumer Wellness segment. The segment’s broad footprint, as of June 30, 2026, includes nearly 9,000 retail locations, online retail pharmacy websites, retail specialty pharmacy stores, compounding pharmacies and branches for infusion and enteral nutrition services.
In the second quarter, Pharmacy and Consumer Wellness generated revenues of nearly $34 billion, a modest increase from the prior-year quarter, primarily driven by pharmacy drug mix, increased prescription volume and brand inflation. Following the completion of the acquisition of select Rite Aid assets nationwide last year, CVS acquired the prescription files of 626 former Rite Aid and Bartell Drugs pharmacies across 15 states. As a result of the transactions, CVS Pharmacy now serves more than nine million former Rite Aid and Bartell Drugs patients. The incremental prescription volume has provided another tailwind for the segment.
On a same-store basis, total revenues increased slightly in the quarter, and same-store pharmacy sales grew approximately 3%. Same-store front store sales rose 100 basis points compared with the prior-year quarter. However, these gains were affected by regulatory-related reductions in select drug prices and the impact of recent generic drug introductions, while pharmacy reimbursement pressure continued to remain another headwind.
The segment’s profitability also improved alongside revenues. Adjusted operating income came in at nearly $1.5 billion, up more than 10% from the prior year, driven mainly by strength in the pharmacy business and contributions from the Rite Aid transaction. This was again moderated by continued business investments and the impact of consumer dynamics.
CVS is carrying the strength of its strong pharmacy performance through the rest of the year. Management now expects the segment's adjusted operating income of at least $6.4 billion for the full year, up $220 million from the prior guidance, reflecting stronger quarterly results and continued confidence in pharmacy performance.
CVS Health’s Peer Updates
DaVita (DVA - Free Report) announced a new value-based care agreement to deliver comprehensive, coordinated care to Humana Medicare Advantage members with chronic kidney disease (CKD) stages 3B–5. The partnership, launched on July 1, builds on the organizations’ long-standing collaboration in end-stage kidney disease and expands earlier into the disease journey when intervention can have the greatest impact. In the second quarter, DaVita reported $3.55 billion in revenues, up 5.2% year over year, while adjusted earnings per share (EPS) from continuing operations were $4.02, up 36.3% from the prior-year quarter.
Cardinal Health (CAH - Free Report) is expanding its at-Home Solutions' growth strategy with two definitive agreements. The company is set to acquire Diabetes Health business of AdaptHealth Corp. and Strive Medical, a multi-specialty supply provider with a focus on urology. The transactions have a combined value of roughly $360 million in cash, subject to working capital adjustments. Both agreements enhance the framework established by Cardinal Health's most recent acquisition of Advanced Diabetes Supply.
CVS’ Price Performance, Valuation and Estimates
Over the past year, CVS Health shares have risen 31.1% compared with the industry’s 13.4% growth.
Image Source: Zacks Investment Research
CVS shares are trading at a forward five-year price-to-sales ratio of 0.28, lower than the 0.54 industry average.
Image Source: Zacks Investment Research
The consensus estimate for the company’s 2026 and 2027 earnings has been showing a bullish trend.
View the Zacks #1 Rank List
Image: Bigstock
How CVS' Pharmacy & Consumer Wellness Is Positioned for H2 2026
Key Takeaways
CVS Health (CVS - Free Report) is building strong momentum in its Pharmacy and Consumer Wellness segment. The segment’s broad footprint, as of June 30, 2026, includes nearly 9,000 retail locations, online retail pharmacy websites, retail specialty pharmacy stores, compounding pharmacies and branches for infusion and enteral nutrition services.
In the second quarter, Pharmacy and Consumer Wellness generated revenues of nearly $34 billion, a modest increase from the prior-year quarter, primarily driven by pharmacy drug mix, increased prescription volume and brand inflation. Following the completion of the acquisition of select Rite Aid assets nationwide last year, CVS acquired the prescription files of 626 former Rite Aid and Bartell Drugs pharmacies across 15 states. As a result of the transactions, CVS Pharmacy now serves more than nine million former Rite Aid and Bartell Drugs patients. The incremental prescription volume has provided another tailwind for the segment.
On a same-store basis, total revenues increased slightly in the quarter, and same-store pharmacy sales grew approximately 3%. Same-store front store sales rose 100 basis points compared with the prior-year quarter. However, these gains were affected by regulatory-related reductions in select drug prices and the impact of recent generic drug introductions, while pharmacy reimbursement pressure continued to remain another headwind.
The segment’s profitability also improved alongside revenues. Adjusted operating income came in at nearly $1.5 billion, up more than 10% from the prior year, driven mainly by strength in the pharmacy business and contributions from the Rite Aid transaction. This was again moderated by continued business investments and the impact of consumer dynamics.
CVS is carrying the strength of its strong pharmacy performance through the rest of the year. Management now expects the segment's adjusted operating income of at least $6.4 billion for the full year, up $220 million from the prior guidance, reflecting stronger quarterly results and continued confidence in pharmacy performance.
CVS Health’s Peer Updates
DaVita (DVA - Free Report) announced a new value-based care agreement to deliver comprehensive, coordinated care to Humana Medicare Advantage members with chronic kidney disease (CKD) stages 3B–5. The partnership, launched on July 1, builds on the organizations’ long-standing collaboration in end-stage kidney disease and expands earlier into the disease journey when intervention can have the greatest impact. In the second quarter, DaVita reported $3.55 billion in revenues, up 5.2% year over year, while adjusted earnings per share (EPS) from continuing operations were $4.02, up 36.3% from the prior-year quarter.
Cardinal Health (CAH - Free Report) is expanding its at-Home Solutions' growth strategy with two definitive agreements. The company is set to acquire Diabetes Health business of AdaptHealth Corp. and Strive Medical, a multi-specialty supply provider with a focus on urology. The transactions have a combined value of roughly $360 million in cash, subject to working capital adjustments. Both agreements enhance the framework established by Cardinal Health's most recent acquisition of Advanced Diabetes Supply.
CVS’ Price Performance, Valuation and Estimates
Over the past year, CVS Health shares have risen 31.1% compared with the industry’s 13.4% growth.
Image Source: Zacks Investment Research
CVS shares are trading at a forward five-year price-to-sales ratio of 0.28, lower than the 0.54 industry average.
Image Source: Zacks Investment Research
The consensus estimate for the company’s 2026 and 2027 earnings has been showing a bullish trend.
Image Source: Zacks Investment Research
CVS currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.