# CVS Health (CVS) Q2 2026 earnings

Results filed 2026-08-05 for the quarter ended 2026-06-30. Source page: https://earnings.opennash.com/companies/cvs/2026-q2/
Press release and exhibits: https://www.sec.gov/Archives/edgar/data/64803/000006480326000097/0000064803-26-000097-index.htm
> 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

| Metric | Value | Change | Basis |
| --- | --- | --- | --- |
| Total revenues | $106.1 billion | up 7.3% year-over-year | GAAP |
| Diluted EPS | $2.31 | up from $0.80 in the prior year | GAAP |
| Adjusted EPS | $2.58 | up from $1.81 in the prior year | non-GAAP |
| Operating income | 4,703 | increased 97.5% | GAAP |
| Adjusted operating income | 5,157 | increased 35.4% | non-GAAP |
| Year-to-date cash flow from operations | $10.6 billion |  | GAAP |

## Segments and operating metrics

| Name | Value | Change |
| --- | --- | --- |
| Health Care Benefits total revenues | $37,538 | increased 3.5% |
| Health Care Benefits adjusted operating income | 2,426 | 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 | $51,795 | increased 11.5% |
| Pharmacy & Consumer Wellness total revenues | $33,816 | up 0.7% |
| Prescriptions filled | 457.0 | increased 4.3% on a 30-day equivalent basis |

## 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

1. **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.
2. **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.
3. **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.
4. **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.
5. **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.

## 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.