A month has gone by since the last earnings report for CVS Health (CVS Quick QuoteCVS - Free Report) . Shares have added about 1% in that time frame, outperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is CVS Health due for a pullback? Well, first let's take a quick look at the most recent earnings report in order to get a better handle on the recent catalysts for CVS Health Corporation before we dive into how investors and analysts have reacted as of late.

CVS Health Tops Q2 Earnings and Revenue Estimates

CVS Health Corporation reported second-quarter 2026 adjusted earnings per share of $2.58 per share, up 42.5% year over year. The figure beat the Zacks Consensus Estimate by 37.97%. Revenues rose 7.3% to $106.10 billion and surpassed the consensus mark by 5.91%.

The upside reflected stronger adjusted operating income across all operating segments, led by Health Care Benefits. Medical membership was 26.0 million at quarter-end.

CVS’ Segment Performance Reflects Broad-Based Improvement

Health Care Benefits revenues increased 3.5% year over year to $37.54 billion. The rise was driven by growth in the Government business, partly offset by the company’s exit from the individual exchange business in 2026.

Health Services revenues rose 11.5% to $51.80 billion. The improvement was supported by pharmacy drug mix and brand inflation, partially offset by continued pharmacy client price improvements.

Pharmacy & Consumer Wellnes srevenues jumped 0.7% to $33.82 billion. Growth from pharmacy drug mix, higher prescription volume, Rite Aid asset contributions and brand inflation was largely offset by regulatory-related price reductions, generic drug introductions and reimbursement pressure.

CVS Health’s Margin Performance Improves

CVS Health’s gross profit, calculated as total revenues less cost of products sold and health care costs, came in at $15.75 billion, up 15.9% year over year. Gross margin expanded 110 basis points (bps) year over year to 14.8%.

Operating income surged 97.5% to $4.70 billion, outpacing revenue growth. The improvement reflected higher adjusted operating income across all operating segments and the absence of $833 million in legacy litigation charges recorded in the prior-year quarter. Operating margin expanded 200 bps to 4.4%.

Adjusted operating income rose 35.4% to $5.16 billion. Adjusted operating margin improved 100 bps to 4.9%, aided by operating expenses declining to $11.05 billion from $11.21 billion in the year-ago quarter.

CVS Health’s Liquidity and Capital Position Improve

CVS Health ended the quarter with cash and cash equivalents of $11.33 billion, up from $9.54 billion at March-end.  Long-term debt stood at $59.45 billion, down from $60.53 billion at first quarter-end.

Cumulative net cash provided by operating activities was $10.59 billion compared with $6.45 billion in the prior-year period.

CVS Health also paid $1.73 billion in dividends during the first half of 2026. Continued debt reduction and disciplined capital returns remain important watch items as the company advances its operating recovery.

CVS Health Raises 2026 Guidance

Management raised its full-year 2026 targets following the quarter’s performance. CVS lifted its GAAP diluted earnings per share outlook to a range of $6.84-$7.04 from $6.24-$6.44 and boosted adjusted earnings guidance to $7.90-$8.10 from $7.30-$7.50. The Zacks Consensus Estimate expects 2026 adjusted earnings per share  to be $7.46.

Revenues for the year are projected to be at least $414 billion, up from the earlier projection of at least $405 billion. The Zacks Consensus Estimate for the same stands at $409.0 billion.

The company also increased its cash flow from operations outlook to at least $11.5 billion from at least $9.5 billion. CVS said the update reflects improved expectations for the Health Care Benefits and Pharmacy & Consumer Wellness segments while maintaining a cautious view for the remainder of the year, given elevated cost trends and potential macroeconomic headwinds.

How Have Estimates Been Moving Since Then?

It turns out, estimates revision have trended downward during the past month.

The consensus estimate has shifted -6.08% due to these changes.

VGM Scores

At this time, CVS Health has a strong Growth Score of A, though it is lagging a lot on the Momentum Score front with a D. However, the stock was allocated a grade 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 downward 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, Icon PLC (ICLR Quick QuoteICLR - Free Report) , has gained 1.5% over the past month. More than a month has passed since the company reported results for the quarter ended June 2026.

Icon PLC reported revenues of $2.06 billion in the last reported quarter, representing a year-over-year change of +2.3%. EPS of $2.56 for the same period compares with $3.26 a year ago.

Icon PLC is expected to post earnings of $2.69 per share for the current quarter, representing a year-over-year change of -18.7%. Over the last 30 days, the Zacks Consensus Estimate has changed +0.3%.

Icon PLC has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of C.