CVS Health (CVS) · Health Care
CVS Health Q2 2026 earnings: summary, key numbers & outlook
Results filed 5 Aug 2026 · Quarter ended 30 Jun 2026
Press release ↗Investor relations ↗
Summaries and transcripts are machine-generated and can contain errors.
In brief
CVS Health reported second quarter total revenues of $106.1 billion, up 7.3% year-over-year, with GAAP diluted EPS of $2.31 and Adjusted EPS of $2.58.
CVS Health's second quarter revenue rose 7.3% to $106.1 billion, with growth in all operating segments. GAAP diluted EPS was $2.31, up from $0.80 a year ago. Adjusted EPS was $2.58, up from $1.81. The main driver was the Health Care Benefits (insurance) segment, where the medical benefit ratio improved to 87.4% from 89.9%. Year-to-date cash flow from operations was $10.6 billion.
Management raised full-year 2026 guidance. GAAP diluted EPS is now expected at $6.84 to $7.04, Adjusted EPS at $7.90 to $8.10, and cash flow from operations at at least $11.5 billion. The company still describes its view for the rest of the year as cautious because of continued elevated cost trends and the potential for macro headwinds. Medical membership was flat at 26.0 million compared with March 31, 2026.
Key numbers
- Total revenues · GAAP
- $106.1 billion
- Diluted EPS · GAAP
- $2.31
- Adjusted EPS · non-GAAP
- $2.58
- Operating income · GAAP
- $4.7B
- Adjusted operating income · non-GAAP
- $5.2B
- Year-to-date cash flow from operations · GAAP
- $10.6 billion
up 7.3% year-over-year
up from $0.80 in the prior year
up from $1.81 in the prior year
increased 97.5%
increased 35.4%
| Segment or metric | Value | Change |
|---|---|---|
| Health Care Benefits total revenues | $37.5B | increased 3.5% |
| Health Care Benefits adjusted operating income | $2.4B | increased 85.5% |
| Medical benefit ratio | 87.4% | down from 89.9% in the prior year |
| Medical membership | 26.0 million | consistent with March 31, 2026 |
| Health Services total revenues | $51.8B | increased 11.5% |
| Pharmacy & Consumer Wellness total revenues | $33.8B | up 0.7% |
| Prescriptions filled | $457.0M | increased 4.3% on a 30-day equivalent basis |
Where each number comes from
- Total revenues: “Second quarter total revenues increased to $106.1 billion, up 7.3% year-over-year”
- Diluted EPS: “Second quarter GAAP diluted EPS of $2.31 and Adjusted EPS of $2.58”
- Adjusted EPS: “Second quarter GAAP diluted EPS of $2.31 and Adjusted EPS of $2.58”
- Operating income: “Total operating costs | 101,393 | 96,534 | 197,139 | 187,748 Operating income | 4,703 | 2,381 | 9,383 | 5,755”
- Adjusted operating income: “Adjusted operating income (1) | 5,157 | 3,808 | 1,349 | 10,307 | 8,387 | 1,920”
- Year-to-date cash flow from operations: “Generated year-to-date cash flow from operations of $10.6 billion”
- Health Care Benefits total revenues: “Total revenues | $37,538 | $36,258 | $1,280 | $73,509 | $71,068 | $2,441”
- Health Care Benefits adjusted operating income: “Adjusted operating income (1) | 2,426 | 1,308 | 1,118 | 5,467 | 3,301 | 2,166”
- Medical benefit ratio: “The MBR decreased to 87.4% in the three months ended June 30, 2026 compared to 89.9% in the prior year”
- Medical membership: “Medical membership as of June 30, 2026 of 26.0 million remained consistent compared with March 31, 2026.”
- Health Services total revenues: “Total revenues | $51,795 | $46,453 | $5,342 | $100,032 | $89,915 | $10,117”
- Pharmacy & Consumer Wellness total revenues: “Total revenues | $33,816 | $33,581 | $235 | $65,805 | $65,493 | $312”
- Prescriptions filled: “Prescriptions filled (5) (6) | 457.0 | 438.1 | 18.9 | 908.2 | 873.6 | 34.6”
Copied from the press release ↗ and other documents in the SEC filing ↗. A figure is published only if its sentence is in the filing.
| From the filing | Q2 2026 | vs year ago | vs last quarter |
|---|---|---|---|
| Revenue | $106.1B | +7.3% | +5.6% |
| Operating income | $4.7B | +97.5% | +0.5% |
| Net income | $3.0B | +191.8% | +1.2% |
| Diluted EPS | $2.31 | +188.8% | +0.4% |
| Free cash flow | $5.7B | +338.3% | +66.3% |
| Operating margin | 4.4% | +2.0 pts | −0.3 pts |
Calculated by code from XBRL, not by the model.
Outlook
| Metric | Period | Outlook |
|---|---|---|
| Total revenues | year ending December 31, 2026 | At least $414.0 |
| GAAP diluted EPS | full-year 2026 | $6.84 to $7.04 |
| Adjusted EPS | full-year 2026 | $7.90 to $8.10 |
| Cash flow from operations | full-year 2026 | at least $11.5 billion |
Key takeaways
Adjusted EPS rose to $2.58
Adjusted EPS of $2.58 compares with $1.81 in the prior year, driven mainly by improved adjusted operating income in Health Care Benefits.
Insurance margins keep recovering
The medical benefit ratio fell to 87.4% from 89.9%, helped by better Government business performance and the absence of a $471 million premium deficiency reserve.
Full-year guidance raised across EPS and cash
Adjusted EPS guidance moved to $7.90 to $8.10 from $7.30 to $7.50, and cash flow from operations guidance to at least $11.5 billion from at least $9.5 billion.
Pharmacy segments both grew profit
Health Services adjusted operating income rose 10.0% and Pharmacy & Consumer Wellness rose 10.2%, with prescriptions filled up 4.3% on a 30-day equivalent basis.
Management stays cautious despite the raise
The company cites continued elevated cost trends and the potential for macro headwinds. Days claims payable were 41.7 days, down 1.2 days from March 31, 2026.
Charts
Fourth quarter worked out from the annual figure.
Data
| Q4 2024 | $97.7B * |
| Q1 2025 | $94.6B |
| Q2 2025 | $98.9B |
| Q3 2025 | $102.9B |
| Q4 2025 | $105.7B * |
| Q1 2026 | $100.4B |
| Q2 2026 | $106.1B |
| Q3 2026 | $108.4B |
Data
| Q1 2025 | $1.41 |
| Q2 2025 | $0.80 |
| Q3 2025 | -$3.13 |
| Q1 2026 | $2.30 |
| Q2 2026 | $2.31 |
| Q3 2026 | $1.68 |
Fourth-quarter EPS appears once the press release is read; filings report it only for the full year.
Data
| Q4 2024 | 2.4% |
| Q1 2025 | 3.6% |
| Q2 2025 | 2.4% |
| Q3 2025 | -3.1% |
| Q4 2025 | 2.0% |
| Q1 2026 | 4.7% |
| Q2 2026 | 4.4% |
| Q3 2026 | 3.3% |
Data
| Q4 2024 | $1.1B |
| Q1 2025 | $3.8B |
| Q2 2025 | $1.3B |
| Q3 2025 | $98.0M |
| Q4 2025 | $2.6B |
| Q1 2026 | $3.4B |
| Q2 2026 | $5.7B |
| Q3 2026 | $3.9B |
Operating cash flow minus capital expenditure, from cash flow statements.
Questions
What were CVS Health's second quarter 2026 results?
Total revenues were $106.1 billion, up 7.3% year-over-year. GAAP diluted EPS was $2.31 and Adjusted EPS was $2.58, compared with $0.80 and $1.81 a year ago.
Did CVS Health raise its 2026 guidance?
Yes. Adjusted EPS guidance is now $7.90 to $8.10 (from $7.30 to $7.50), GAAP diluted EPS is $6.84 to $7.04, and cash flow from operations is at least $11.5 billion.
What drove the earnings improvement?
Mainly the Health Care Benefits segment, where adjusted operating income rose to $2,426 million from $1,308 million as the medical benefit ratio improved to 87.4% from 89.9%.
How did the pharmacy businesses perform?
Health Services revenue rose 11.5% to $51,795 million and Pharmacy & Consumer Wellness revenue rose 0.7% to $33,816 million. Both segments' adjusted operating income grew about 10%.
What risks does management flag?
The company maintains a cautious view for the rest of the year because of continued elevated cost trends and the potential for macro headwinds.
Documents
SEC filing