| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 75 | 24.9x | 17.8x | Top tier | |
Growth | 30 | 7.4% | 7.1% | Bottom tier | |
Quality | 66 | 4.8% | 4.5% | Around median | |
Safety | 49 | 4.9x | 2.6x | Around median | |
Capital Return | 65 | 2.81% | 2.12% | Around median | |
Momentum | 82 | 36.2% | 2.9% | Top tier | |
Sentiment | 85 | 17 | 3 | Top tier |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
CVS Health operates through an interconnected healthcare ecosystem that combines health insurance through Aetna; pharmacy benefit management, prescription services, and specialty pharmacy services through Caremark and CVS Specialty; care delivery services; and CVS Pharmacy locations, retail stores, and digital platforms. The company generates revenue from insurance premiums, pharmacy benefit management, dispensing prescriptions and specialty drugs, care services, and consumer sales. In Q2 FY2026, Health Care Services segment revenue was approximately $52 billion, Health Care Benefits segment revenue exceeded $37 billion, and Pharmacy & Consumer Wellness segment revenue was approximately $34 billion, with intersegment transactions making their combined total different from the group’s revenue.
In Q2 FY2026, CVS Health reported revenue of $106.1 billion, gross profit of $47.2 billion, net income of $3.0 billion, and diluted earnings per share of $2.31, according to EDGAR data. This equates to a gross margin of approximately 44.5% and a net income margin of approximately 2.8%. On an adjusted basis, operating income reached $5.2 billion, up more than 35% year over year, and adjusted earnings per share reached $2.58, up more than 40%, while revenue grew by more than 7%.
The improvement was broad-based, as all three operating segments delivered revenue and earnings growth and exceeded management’s expectations. The Health Care Benefits segment reported adjusted operating income of approximately $2.4 billion and a medical benefit ratio of 87.4%, while adjusted operating income for Health Care Services exceeded $1.7 billion and its counterpart in Pharmacy & Consumer Wellness was approximately $1.5 billion. Revenue for the twelve months ended in 2026 was approximately $407.9 billion, but net income of $2.9 billion demonstrates that the scale of the business does not eliminate earnings sensitivity to medical costs, pricing, and regulation.
The average analyst price target is $110.47, within a wide range of $92 to $126, with a consensus rating of “Buy.” The average is approximately at the upper end of the 52-week range of $69.51–$110.68, while the highest target is approximately 14% above that limit and the lowest target is approximately 17% below it, reflecting meaningful disagreement over the sustainability of Aetna’s recovery and pressures on Caremark and 340B. No valid price-to-earnings multiple is available in the data, so the stock’s valuation here is based on analyst targets, the 52-week range, and the company’s ability to achieve its adjusted earnings per share guidance of $7.90–$8.10 for FY2026.
Figures in the text are as of 2026-08-27; the live price is shown at the top of the page.
Revenue reached $106.1 billion, net income was $3.0 billion, and earnings per share according to EDGAR were $2.31. On an adjusted basis, the company reported operating income of $5.2 billion and earnings per share of $2.58, representing year-over-year increases of more than 35% and 40%, respectively. All three operating segments delivered revenue and earnings growth, led by Aetna’s recovery and improvements in pharmacy and health services.
The company raised its adjusted earnings per share guidance by $0.60 to a range of $7.90–$8.10. It also increased its revenue forecast to at least $414 billion and adjusted operating income guidance to a range of $16.58–$16.92 billion. Its operating cash flow forecast increased by $2 billion to at least $11.5 billion, and the guidance does not assume any share repurchases during FY2026.
Aetna showed clear progress, with the Health Care Benefits segment generating adjusted operating income of approximately $2.4 billion and a medical benefit ratio of 87.4% in Q2 FY2026. The year-over-year improvement in adjusted operating income exceeded $2 billion during the first half, and Medicare performance was also above management’s expectations. However, approximately $500 million of the quarter’s result was related to a risk-adjustment settlement and favorable prior-year development, and the company expects a medical benefit ratio of 89.75% for FY2026, meaning that continued medical cost control remains critical.
Automated analysis for informational purposes only — not investment advice.
The company serves the market through Caremark and Aetna coverage, a direct-to-consumer platform, and a network of approximately 9,000 pharmacy locations and nearly 30,000 pharmacists. MinuteClinic reduced the price of a weight-management visit from $49 to $29, and certain eligible individuals can access treatment for a cash price starting at $149. During 2026, CVS Health announced a collaboration with Eli Lilly involving Zepbound and Foundayo, in addition to its relationship with Novo to dispense oral and injectable Wegovy.
Management expects Caremark membership to decline because of greater discipline in underwriting and renewals, as well as product actions and the exit of certain health-plan clients from specific markets. It also expects continued 340B pressure resulting from manufacturer restrictions and the transition of certain major specialty drugs to generics. In contrast, the mitigation plan relies on CVS Specialty and the generic specialty drug portfolio; Cordavis has generated more than $1.8 billion in savings for clients from Humira alone.
The company has committed to investing more than $20 billion in technology over a decade and, through Q2 FY2026, has achieved more than $1 billion in operating savings. Its claims assistance system reduces processing time by more than 20%, while preparation for certain Aetna One cases has been shortened from 90 minutes to 2 minutes. In addition, 83% of prior authorizations are approved immediately and more than 95% within 24 hours, while automation has returned 1 million hours of pharmacists’ time to direct care.
