CVS HEALTH CORPORATION REPORTS THIRD QUARTER 2026 RESULTS
CVS HEALTH CORPORATION REPORTS THIRD QUARTER 2026 RESULTS AND RAISES FULL-YEAR 2026 GUIDANCE •Third quarter total revenues increased to $108.4 billion, up 5.4% year-over-year •Third quarter GAAP diluted EPS of $1.68 and Adjusted EPS of $2.09 •Generated year-to-date cash flow from operations of $15.3 billion •Raising full-year 2026 guidance: ◦GAAP diluted EPS guidance to at least $6.98 from a range of $6.84 to $7.04 ◦Adjusted EPS guidance to at least $8.20 from a range of $7.90 to $8.10 ◦Cash flow from operations guidance to at least $15.5 billion from at least $11.5 billion
WOONSOCKET, RHODE ISLAND, November 4, 2026 - CVS Health Corporation (NYSE: CVS) today announced operating results for the three months ended September 30, 2026. “Our colleagues build trust every day through delivering quality health care rooted in our purpose - to simplify health care one person, one family and one community at a time. Through their continued dedication, each of our businesses delivered another quarter of strong results. We continue to advance our strategy by improving the consumer experience, lowering health care costs, and connecting care for the people we serve.” -David Joyner, CVS Health Chairman and CEO ──────────────────────────────────────────────────────────────────────────────
Third quarter GAAP diluted earnings per share of $1.68 increased from a loss per share of $3.13 in the prior year, reflecting the absence of a $5.7 billion goodwill impairment charge recorded in the third quarter of 2025. Adjusted EPS of $2.09 increased from $1.60 in the prior year, primarily due to improved adjusted operating income in the Health Care Benefits segment, reflecting continued execution of its margin recovery plan.
The Company is increasing its full-year 2026 GAAP diluted EPS, Adjusted EPS and cash flow from operations guidance to reflect increases in the Health Care Benefits and Pharmacy & Consumer Wellness segments, while maintaining a cautious view for the remainder of the year in light of continued elevated cost trends and the potential for macro headwinds. 1
• Total revenues increased 5.4% primarily driven by growth in the Health Services and Health Care Benefits segments.
• During the three months ended September 30, 2026, the Company generated operating income of $3.6 billion compared to an operating loss of $3.2 billion in the prior year. The difference was primarily driven by the absence of the $5.7 billion goodwill impairment charge related to the Health Care Delivery reporting unit recorded in the prior year and the increase in adjusted operating income described below.
• Adjusted operating income increased 21.2% primarily driven by increases across all operating segments. See pages 3through 5for additional discussion of the adjusted operating income performance of the Company’s segments.
• More than 69 percent of Aetna ® Medicare Advantage members are in 2027 plans rated 4 stars or higher (out of 5 stars) by the Centers for Medicare & Medicaid Services. These results position Aetna second among large, publicly traded Medicare Advantage organizations in the Star Ratings program. For the third consecutive year, Aetna’s commitment to care has driven strong performance across various clinical quality, preventive care and member experience measures.
• CVS Health continues to lead the industry through enhancements to its direct- to-consumer weight management offerings to improve access, affordability, care and support for GLP-1 medications. CVS Pharmacy offers all FDA-approved GLP-1s. Through its integrated offerings, CVS Health can combine a MinuteClinic digital weight loss visit with a licensed clinician, same-day medication pickup at 9,000 local CVS Pharmacy locations, and in-person pharmacist support in one connected experience, with no membership or recurring monthly fee.
• Health100™, a CVS Health subsidiary, earned the CARIN Code of Conduct for Consumer-Facing Applications Accreditation from DirectTrust ® for the Health100 mobile app. Health100 provides consumers with cost transparency and the ability to reduce out-of-pocket costs, helps them find and access expanded care, and offers integrated, simpler health care navigation and chronic condition management, including real-time proactive support to stay on track. 2
The Health Care Benefits segment offers a full range of insured and self-insured (“ASC”) medical, pharmacy, dental and behavioral health products and services. The segment results for the three and nine months ended September 30, 2026 and 2025 were as follows:
• Total revenues increased 2.4% for the three months ended September 30, 2026 compared to the prior year primarily driven by an increase in the Government business, partially offset by a decline as a result of the Company’s exit of the individual exchange business in 2026.
• Adjusted operating income increased significantly in the three months ended September 30, 2026 compared to the prior year primarily driven by improved underlying performance in the Government business.
• The MBR decreased to 91.3% in the three months ended September 30, 2026 compared to 92.8% in the prior year primarily driven by improved underlying performance in the Government business.
• Medical membership as of September 30, 2026 of 26.1 million remained consistent compared with June 30, 2026.
• Prior years’ health care costs payable estimates developed favorably by $1.3 billion during the nine months ended September 30, 2026.
• Days claims payable were 41.9 days as of September 30, 2026, an increase of 0.2 days compared to June 30, 2026. 3
The Health Services segment provides a full range of pharmacy benefit management solutions, delivers health care services in its medical clinics, virtually, and in the home, and offers provider enablement solutions. The segment results for the three and nine months ended September 30, 2026 and 2025 were as follows:
• Total revenues increased 9.5% for the three months ended September 30, 2026 compared to the prior year primarily driven by pharmacy drug mix and brand inflation, partially offset by continued pharmacy client price improvements.
• Adjusted operating income increased 2.7% for the three months ended September 30, 2026 compared to the prior year primarily driven by improved purchasing economics and pharmacy drug mix, partially offset by continued pharmacy client price improvements.
• Pharmacy claims processed increased 1.3% on a 30-day equivalent basis for the three months ended September 30, 2026 compared to the prior year. 4
The Pharmacy & Consumer Wellness segment dispenses prescriptions in its retail pharmacies and through its infusion operations, provides ancillary pharmacy services including pharmacy patient care programs and vaccination administration, and sells a wide assortment of health and wellness products and general merchandise. The segment also provides pharmacy fulfillment services to support the Health Services segment’s specialty and mail order pharmacy offerings. The segment results for the three and nine months ended September 30, 2026 and 2025 were as follows:
• Total revenues decreased 2.0% for the three months ended September 30, 2026 compared to the prior year primarily driven by regulatory-related price reductions on certain drugs, the impact of recent generic drug introductions and pharmacy reimbursement pressure. These decreases were partially offset by pharmacy drug mix, increased prescription volume, including contributions from the Company’s Rite Aid asset acquisitions which were completed during the third quarter of 2025, and brand inflation.
• Adjusted operating income increased 10.6% for the three months ended September 30, 2026 compared to the prior year primarily driven by core pharmacy strength and contributions from the Company’s Rite Aid asset acquisitions. These increases were partially offset by continued business investments and the impact of consumer dynamics.
• Prescriptions filled increased 1.9% on a 30-day equivalent basis for the three months ended September 30, 2026 compared to the prior year primarily driven by increased utilization and incremental volume resulting from the Company’s Rite Aid prescription file acquisitions, partially offset by the absence of long-term care pharmacy prescription volume following the deconsolidation of Omnicare, LLC (“Omnicare”) in September 2025. 5
CVS Health is a leading health solutions company simplifying health care one person, one family and one community at a time. As of September 30, 2026, the Company had approximately 9,000 retail pharmacy locations, more than 1,000 walk- in and primary care medical clinics and a leading pharmacy benefits manager with approximately 87 million plan members. The Company also serves an estimated 37 million people through a broad range of health insurance products and related services. The Company’s integrated model uses personalized, technology driven services to connect people to simply better health, increasing access to quality care, delivering better outcomes, and lowering overall costs.
The Company will be holding a conference call today for investors at 8:00 a.m. (Eastern Time) to discuss its third quarter results. An audio webcast of the call will be broadcast simultaneously for all interested parties through the Investor Relations section of the CVS Health website at http://investors.cvshealth.com. This webcast will be archived and available on the website for a one-year period following the conference call.
The Company presents both GAAP and non-GAAP financial measures in this press release to assist in the comparison of the Company’s past financial performance with its current financial performance. See “Non-GAAP Financial Information” beginning on page 10and endnotes beginning on page 20for explanations of non- GAAP financial measures presented in this press release. See pages 12through 14and page 19for reconciliations of each non-GAAP financial measure used in this release to the most directly comparable GAAP financial measure.
The Private Securities Litigation Reform Act of 1995 provides a safe harbor for forward-looking statements made by or on behalf of CVS Health Corporation. Statements in this press release that are forward-looking include, but are not limited to, the full-year 2026 guidance information, Mr. Joyner’s quotation and the information included in the reconciliations and endnotes. By their nature, all forward-looking statements are not guarantees of future performance or results and are subject to risks and uncertainties that are difficult to predict and/or quantify. Actual results may differ materially from those contemplated by the forward-looking statements due to the risks and uncertainties described in our Securities and Exchange Commission (“SEC”) filings, including those set forth in the Risk Factors section and under the heading “Cautionary Statement Concerning Forward-Looking Statements” in our most recently filed Annual Report on Form 10-K, our Quarterly Reports on Form 10-Q for the quarterly periods ended March 31, 2026, June 30, 2026 and September 30, 2026 and our Current Reports on Form 8-K.
You are cautioned not to place undue reliance on CVS Health’s forward-looking statements. CVS Health’s forward-looking statements are and will be based upon management’s then-current views and assumptions regarding future events and operating performance, and are applicable only as of the dates of such statements. CVS Health does not assume any duty to update or revise forward- looking statements, whether as a result of new information, future events, uncertainties or otherwise. Investor Contact: Larry McGrath | Executive Vice President, Capital Markets | (800) 201-0938
Media Contact: Ethan Slavin | Executive Director, Corporate Communications | (860) 273-6095
September 30, December 31, In millions 2026 2025 ────────────────────────────────────────────────────────────────────────────── Assets: Cash and cash equivalents $ 11,738 $ 8,453 Investments 3,149 2,145 Accounts receivable, net 42,073 39,779 Inventories 18,240 19,246 Other current assets 4,192 5,091 Total current assets 79,392 74,714 Long-term investments 34,066 32,669 Property and equipment, 13,322 13,083 net Operating lease 14,226 14,973 right-of-use assets Goodwill 85,478 85,478 Intangible assets, net 24,224 25,508 Other assets 7,367 7,113 Total assets $ 258,075 $ 253,538 Liabilities: Accounts payable $ 17,875 $ 17,641 Pharmacy claims and 26,296 26,344 discounts payable Health care costs payable 16,858 15,399 Accrued expenses and other current 25,787 22,387 liabilities Other insurance 904 1,116 liabilities Current portion of operating lease 1,920 1,737 liabilities Current portion of 3,457 4,068 long-term debt Total current liabilities 93,097 88,692 Long-term operating lease 12,697 13,643 liabilities Long-term debt 57,223 60,502 Deferred income taxes 3,866 3,832 Other long-term insurance 4,231 4,716 liabilities Other long-term 6,272 6,771 liabilities Total liabilities 177,386 178,156 Shareholders’ equity: Preferred stock — — Common stock and capital 51,154 50,402 surplus Treasury stock -36,769 -36,790 Retained earnings 66,707 61,196 Accumulated other comprehensive income -595 406 (loss) Total CVS Health 80,497 75,214 shareholders’ equity Noncontrolling interests 192 168 Total shareholders’ equity 80,689 75,382 Total liabilities and shareholders’ $ 258,075 $ 253,538 equity
In millions Cash flows from operating activities: Reconciliation of net income Nine Months Ended (loss) to net cash provided September 30, by operating activities: 2026 2025 ────────────────────────────────────────────────────────────────────────────── Net income (loss) $ 8,123 $ -1,195 Adjustments required to reconcile net income (loss) to net cash provided by operating activities: Depreciation and amortization 3,373 3,459 Goodwill impairment — 5,725 Stock-based compensation 610 400 Loss on sale of subsidiary — 236 Gain on deconsolidation of — -483 subsidiary Deferred income taxes and -344 -440 other items Change in operating assets and 3,556 -453 liabilities Net cash provided by operating 15,318 7,249 activities Cash flows from investing activities: Proceeds from sales and maturities of 10,382 9,640 investments Purchases of investments -13,592 -11,045 Purchases of property and -2,357 -2,048 equipment Acquisitions -15 -429 Other 37 9 Net cash used in investing -5,545 -3,873 activities Cash flows from financing activities: Commercial paper borrowings — -872 (repayments), net Proceeds from issuance of — 3,969 long-term debt Repayments of long-term debt -4,057 -3,609 Dividends paid -2,578 -2,552 Proceeds from exercise of 339 308 stock options Payments for taxes related to net share -175 -145 settlement of equity awards Other -66 -7 Net cash used in financing -6,537 -2,908 activities Net increase in cash, cash equivalents 3,236 468 and restricted cash Cash, cash equivalents and restricted 8,712 8,884 cash at the beginning of the period Cash, cash equivalents and restricted $ 11,948 $ 9,352 cash at the end of the period
The Company uses non-GAAP financial measures to analyze underlying business performance and trends. The Company believes that providing these non-GAAP financial measures enhances the Company’s and investors’ ability to compare the Company’s past financial performance with its current and expected future performance. These non-GAAP financial measures, which are included in this press release and which may be referred to on the conference call discussing the Company’s third quarter financial results, are provided as supplemental information to the financial measures presented in this press release and discussed on the conference call that are calculated and presented in accordance with GAAP. Non-GAAP financial measures should not be considered a substitute for, or superior to, financial measures determined or calculated in accordance with GAAP. The Company’s definitions of its non-GAAP financial measures may not be comparable to similarly titled measures reported by other companies.
Non-GAAP financial measures such as consolidated adjusted operating income, adjusted earnings per share (“EPS”) and adjusted income attributable to CVS Health exclude from the relevant GAAP metrics, as applicable: amortization of intangible assets, net realized capital gains or losses and other items, if any, that neither relate to the ordinary course of the Company’s business nor reflect the Company’s underlying business performance.
For the periods covered in this press release, the following items are excluded from the non-GAAP financial measures described above, as applicable, because the Company believes they neither relate to the ordinary course of the Company’s business nor reflect the Company’s underlying business performance:
• The Company’s acquisition activities have resulted in the recognition of intangible assets as required under the acquisition method of accounting which consist primarily of trademarks, customer contracts/relationships, covenants not to compete, technology, provider networks and value of business acquired. Definite-lived intangible assets are amortized over their estimated useful lives and are tested for impairment when events indicate that the carrying value may not be recoverable. The amortization of intangible assets is reflected in operating expenses within each segment. Although intangible assets contribute to the Company’s revenue generation, the amortization of intangible assets does not directly relate to the underwriting of the Company’s insurance products, the services performed for the Company’s customers or the sale of the Company’s products or services. Additionally, intangible asset amortization expense typically fluctuates based on the size and timing of the Company’s acquisition activity. Accordingly, the Company believes excluding the amortization of intangible assets enhances the Company’s and investors’ ability to compare the Company’s past financial performance with its current performance and to analyze underlying business performance and trends. Intangible asset amortization excluded from the related non-GAAP financial measure represents the entire amount recorded within the Company’s GAAP financial statements, and the revenue generated by the associated intangible assets has not been excluded from the related non-GAAP financial measure. Intangible asset amortization is excluded from the related non-GAAP financial measure because the amortization, unlike the related revenue, is not affected by operations of any particular period unless an intangible asset becomes impaired or the estimated useful life of an intangible asset is revised.
• The Company’s net realized capital gains and losses arise from various types of transactions, primarily in the course of managing a portfolio of assets that support the payment of insurance liabilities. Net realized capital gains and losses are reflected in net investment income (loss) within each segment. These capital gains and losses are the result of investment decisions, market conditions and other economic developments that are unrelated to the performance of the Company’s business, and the amount and timing of these capital gains and losses do not directly relate to the underwriting of the Company’s insurance products, the services performed for the Company’s customers or the sale of the Company’s products or services. Accordingly, the Company believes excluding net realized capital gains and losses enhances the Company’s and investors’ ability to compare the Company’s past financial performance with its current performance and to analyze underlying business performance and trends.
• During the three and nine months ended September 30, 2026 and 2025, the acquisition-related integration costs relate to the acquisitions of Signify Health, Inc. and Oak Street Health, Inc. The acquisition-related integration costs are reflected in operating expenses within the Corporate/Other segment. 10 • During the three and nine months ended September 30, 2026, the Omnicare guarantee relates to an estimated contingent guarantee liability recorded in connection with agreements to resolve certain litigation and Chapter 11 bankruptcy matters involving Omnicare. Following bankruptcy court approval of the agreements in August 2026 and the determination that the sale of Omnicare’s assets is probable of occurring in the fourth quarter of 2026, the Company recorded an estimated contingent guarantee liability in the third quarter of 2026. The Omnicare guarantee is reflected in operating expenses within the Corporate/Other Segment.
• During the three and nine months ended September 30, 2025, the goodwill impairment charge relates to the Health Care Delivery reporting unit within the Health Services segment.
• During the three and nine months ended September 30, 2025, the Health Care Delivery clinic closure charge primarily relates to the write down of long-lived assets in connection with the closure of certain Oak Street Health clinics in 2026, as well as associated severance and employee-related costs. The Health Care Delivery clinic closure charge was reflected in operating expenses within the Health Services segment.
• During the three and nine months ended September 30, 2025, the opioid litigation charge relates to a change in the Company’s accrual related to ongoing opioid litigation matters.
• During the nine months ended September 30, 2025, the Company recorded legacy litigation charges related to two court decisions associated with its past business practices. The legacy litigation charges were reflected in operating expenses within the Pharmacy & Consumer Wellness and Health Services segments.
• During the nine months ended September 30, 2025, the loss on the wind down and sale of Accountable Care assets represents the pre-tax loss on the divestiture of the Company’s Medicare Shared Savings Program (“MSSP”) operations, as well as costs incurred in connection with the wind down of the Company’s ACO REACH operations. The loss on Accountable Care assets was reflected in operating expenses within the Health Services segment.
• During the nine months ended September 30, 2025, the office real estate optimization charges primarily relate to the abandonment of leased real estate and the related right-of-use assets and property and equipment in connection with the Company’s evaluation of corporate office real estate space. The office real estate optimization charges were reflected in operating expenses within each segment.
• During the three and nine months ended September 30, 2025, the gain on deconsolidation of subsidiary relates to Omnicare, a wholly-owned indirect subsidiary of CVS Health Corporation, and certain of its subsidiary entities (collectively, the “Omnicare Entities”). In September 2025, the Omnicare Entities voluntarily initiated Chapter 11 proceedings under the U.S. Bankruptcy Code, at which time the Company determined that it no longer retained control of the Omnicare Entities and deconsolidated the subsidiaries.
• The corresponding tax benefit or expense related to the items excluded from adjusted income attributable to CVS Health and Adjusted EPS above. The nature of each non-GAAP adjustment is evaluated to determine whether a discrete adjustment should be made to the adjusted income tax provision.
See endnotes (1) and (2) on page 20for definitions of non-GAAP financial measures. Reconciliations of each non-GAAP financial measure to the most directly comparable GAAP financial measure are presented on pages 12through 14and page 19. 11
Reconciliations of Non-GAAP Financial Measures to the Most Directly Comparable GAAP Financial Measures
(Unaudited) The following are reconciliations of consolidated operating income (loss) (GAAP measure) to consolidated adjusted operating income, as well as reconciliations of segment GAAP operating income (loss) to segment adjusted operating income (loss):
(Unaudited) The following are reconciliations of net income (loss) attributable to CVS Health to adjusted income attributable to CVS Health and calculations of GAAP diluted earnings (loss) per share and Adjusted EPS:
(Unaudited) The following are reconciliations of financial measures of the Company’s segments to the consolidated totals:
_____________________________________________ (a) Intersegment revenue eliminations relate to intersegment revenue generating activities that occur between the Health Care Benefits segment, the Health Services segment, and/or the Pharmacy & Consumer Wellness segment. 15
The following table summarizes the Health Care Benefits segment’s performance for the respective periods:
The following table summarizes the Health Care Benefits segment’s medical membership for the respective periods:
The following table summarizes the Health Care Benefits segment’s days claims payable for the respective periods:
The following table summarizes the Health Services segment’s performance for the respective periods:
The following table summarizes the Pharmacy & Consumer Wellness segment’s performance for the respective periods:
(Unaudited) The following reconciliations of projected net income attributable to CVS Health to projected adjusted income attributable to CVS Health and calculations of projected GAAP diluted EPS and projected Adjusted EPS contain forward-looking information. All forward-looking information involves risks and uncertainties. Actual results may differ materially from those contemplated by the forward- looking information for a number of reasons as described in our SEC filings, including those set forth in the Risk Factors section and under the heading “Cautionary Statement Concerning Forward-Looking Statements” in our most recently filed Annual Report on Form 10-K and our most recently filed Quarterly Report on Form 10-Q. See “Non-GAAP Financial Information” earlier in this press release and endnote (2) later in this press release for more information on how we calculate Adjusted EPS.
Year Ending December 31, 2026 ────────────────────────────────────────────────────────────────────────────── At Least In millions, except per share Total Per amounts Company Common Share Net income attributable to CVS Health $ 9,002 $ 6.98 (GAAP measure) Non-GAAP adjustments: Amortization of intangible 1,730 1.34 assets Net realized capital losses 26 0.02 Acquisition-related 80 0.06 integration costs Omnicare guarantee 193 0.15 Tax impact of non-GAAP -460 -0.35 adjustments Adjusted income attributable to CVS $ 10,571 $ 8.20 Health(2) Weighted average diluted shares 1,289 outstanding
(1) The Company defines adjusted operating income as operating income (loss) (GAAP measure) excluding the impact of amortization of intangible assets, net realized capital gains or losses and other items, if any, that neither relate to the ordinary course of the Company’s business nor reflect the Company’s underlying business performance, such as acquisition-related integration costs, the Omnicare guarantee, goodwill impairment charges, Health Care Delivery clinic closure charges, opioid litigation charges, certain legacy litigation charges, losses on Accountable Care assets and office real estate optimization charges. The chief operating decision maker (the “CODM”) uses adjusted operating income as its principal measure of segment performance as it enhances the CODM’s ability to compare past financial performance with current performance and analyze underlying business performance and trends. The consolidated measure is not determined in accordance with GAAP and should not be considered a substitute for, or superior to, the most directly comparable GAAP measure, consolidated operating income (loss). See “Non-GAAP Financial Information” earlier in this press release for additional information regarding the items excluded from consolidated operating income (loss) in determining consolidated adjusted operating income.
(2) GAAP diluted earnings (loss) per share and Adjusted EPS, respectively, are calculated by dividing net income (loss) attributable to CVS Health and adjusted income attributable to CVS Health by the Company’s weighted average diluted shares outstanding. The Company defines adjusted income attributable to CVS Health as net income (loss) attributable to CVS Health (GAAP measure) excluding the impact of amortization of intangible assets, net realized capital gains or losses and other items, if any, that neither relate to the ordinary course of the Company’s business nor reflect the Company’s underlying business performance, such as acquisition-related integration costs, the Omnicare guarantee, goodwill impairment charges, Health Care Delivery clinic closure charges, opioid litigation charges, certain legacy litigation charges, losses on Accountable Care assets, office real estate optimization charges, the gain on deconsolidation of subsidiary, as well as the corresponding income tax benefit or expense related to the items excluded from adjusted income attributable to CVS Health. Adjusted EPS for the three and nine months ended September 30, 2025 is calculated utilizing weighted average diluted shares outstanding, which include potential common shares in each period, as the impact of the potential common shares was dilutive. The potential common shares were excluded from the calculations of GAAP loss per share for the three and nine months ended September 30, 2025, as the shares would have had an anti-dilutive effect as a result of the GAAP net loss in each period. See “Non-GAAP Financial Information” earlier in this press release for additional information regarding the items excluded from net income (loss) attributable to CVS Health in determining adjusted income attributable to CVS Health.
(3) Medical benefit ratio is calculated by dividing the Health Care Benefits segment’s health care costs by premium revenues and represents the percentage of premium revenues spent on medical benefits for the segment’s insured members. Management uses MBR to assess the underlying business performance and underwriting of its insurance products, understand variances between actual results and expected results and identify trends in period-over-period results. MBR provides management and investors with information useful in assessing the operating results of the Health Care Benefits segment’s insured products.
(4) Medical membership represents the number of members covered by the Health Care Benefits segment’s insured and ASC medical products and related services at a specified point in time. Management uses this metric to understand variances between actual medical membership and expected amounts as well as trends in period-over-period results. This metric provides management and investors with information useful in understanding the impact of medical membership on the Health Care Benefits segment’s total revenues and operating results.
(5) Pharmacy claims processed represents the number of prescription claims processed through the Company’s pharmacy benefits manager and dispensed by either its retail network pharmacies or the Company’s mail and specialty pharmacies. Prescriptions filled represents the number of prescriptions dispensed through the Pharmacy & Consumer Wellness segment’s retail pharmacies and infusion services operations, as well as through the Omnicare long-term care pharmacies prior to their deconsolidation in September 2025. Management uses these metrics to understand variances between actual claims processed and prescriptions dispensed, respectively, and expected amounts as well as trends in period-over-period results. These metrics provide management and investors with 20 information useful in understanding the impact of pharmacy claim volume and prescription volume, respectively, on segment total revenues and operating results.
(6) Includes an adjustment to convert 90-day prescriptions to the equivalent of three 30-day prescriptions. This adjustment reflects the fact that these prescriptions include approximately three times the amount of product days supplied compared to a normal prescription.
(7) Days claims payable is calculated by dividing the Health Care Benefits segment’s health care costs payable at the end of each quarter by its average health care costs per day during such quarter. Management and investors use this metric as one of the indicators of the adequacy of the health care costs payable liability at the end of each quarter.
(8) Gross profit is calculated as the segment’s total revenues less its cost of products sold, and, for the Health Services segment, health care costs. Gross margin is calculated by dividing the segment’s gross profit by its total revenues and represents the percentage of total revenues that remains after incurring direct costs associated with the segment’s products sold and services provided. Gross margin provides investors with information that may be useful in assessing the operating results of the Company’s Health Services and Pharmacy & Consumer Wellness segments.
(9) Same store sales and prescription volume represent the change in revenues and prescriptions filled in the Company’s retail pharmacy stores that have been operating for greater than one year and digital sales initiated online or through mobile applications and fulfilled through the Company’s distribution centers, expressed as a percentage that indicates the increase or decrease relative to the comparable prior period. Same store metrics exclude revenues and prescriptions from infusion services operations and long-term care pharmacies. Management uses these metrics to evaluate the performance of existing stores on a comparable basis and to inform future decisions regarding existing stores and new locations. Same-store metrics provide management and investors with information useful in understanding the portion of current revenues and prescriptions resulting from organic growth in existing locations versus the portion resulting from opening new stores. 21
Full text with the tables
Exhibit 99.1
CVS HEALTH CORPORATION REPORTS THIRD QUARTER 2026 RESULTS
AND RAISES FULL-YEAR 2026 GUIDANCE
•Third quarter total revenues increased to $108.4 billion, up 5.4%
year-over-year
•Third quarter GAAP diluted EPS of $1.68 and Adjusted EPS of $2.09
•Generated year-to-date cash flow from operations of $15.3 billion
•Raising full-year 2026 guidance:
◦GAAP diluted EPS guidance to at least $6.98 from a range of $6.84 to $7.04
◦Adjusted EPS guidance to at least $8.20 from a range of $7.90 to $8.10
◦Cash flow from operations guidance to at least $15.5 billion from at least
$11.5 billion
WOONSOCKET, RHODE ISLAND, November 4, 2026 - CVS Health Corporation (NYSE:
CVS) today announced operating results for the three months ended September
30, 2026.
“Our colleagues build trust every day through delivering quality health care
rooted in our purpose - to simplify health care one person, one family and
one community at a time. Through their continued dedication, each of our
businesses delivered another quarter of strong results. We continue to
advance our strategy by improving the consumer experience, lowering health
care costs, and connecting care for the people we serve.”
-David Joyner, CVS Health Chairman and CEO
──────────────────────────────────────────────────────────────────────────────
In billions, Three Months
except per Ended
share amounts 2026 September 30, 2025 2026 Projected
──────────────────────────────────────────────────────────────────────────────
Total revenues $ 108.4 $ 102.9 At least $420.0
Diluted
earnings (loss) $ 1.68 $ -3.13 At least $6.98
per share
Adjusted EPS(2) $ 2.09 $ 1.60 At least $8.20
Third quarter GAAP diluted earnings per share of $1.68 increased from a loss per
share of $3.13 in the prior year, reflecting the absence of a $5.7 billion
goodwill impairment charge recorded in the third quarter of 2025. Adjusted EPS
of $2.09 increased from $1.60 in the prior year, primarily due to improved
adjusted operating income in the Health Care Benefits segment, reflecting
continued execution of its margin recovery plan.
The Company is increasing its full-year 2026 GAAP diluted EPS, Adjusted EPS and
cash flow from operations guidance to reflect increases in the Health Care
Benefits and Pharmacy & Consumer Wellness segments, while maintaining a cautious
view for the remainder of the year in light of continued elevated cost trends
and the potential for macro headwinds.
1
Consolidated third quarter results
In
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For the three months ended September 30, 2026 compared to the prior year:
• Total revenues increased 5.4% primarily driven by growth in the Health
Services and Health Care Benefits segments.
• During the three months ended September 30, 2026, the Company generated
operating income of $3.6 billion compared to an operating loss of $3.2 billion
in the prior year. The difference was primarily driven by the absence of the
$5.7 billion goodwill impairment charge related to the Health Care Delivery
reporting unit recorded in the prior year and the increase in adjusted operating
income described below.
• Adjusted operating income increased 21.2% primarily driven by increases across
all operating segments. See pages 3through 5for additional discussion of the
adjusted operating income performance of the Company’s segments.
Operational Updates
• More than 69 percent of Aetna ® Medicare Advantage members are in 2027 plans
rated 4 stars or higher (out of 5 stars) by the Centers for Medicare & Medicaid
Services. These results position Aetna second among large, publicly traded
Medicare Advantage organizations in the Star Ratings program. For the third
consecutive year, Aetna’s commitment to care has driven strong performance
across various clinical quality, preventive care and member experience measures.
• CVS Health continues to lead the industry through enhancements to its direct-
to-consumer weight management offerings to improve access, affordability, care
and support for GLP-1 medications. CVS Pharmacy offers all FDA-approved GLP-1s.
Through its integrated offerings, CVS Health can combine a MinuteClinic digital
weight loss visit with a licensed clinician, same-day medication pickup at 9,000
local CVS Pharmacy locations, and in-person pharmacist support in one connected
experience, with no membership or recurring monthly fee.
• Health100™, a CVS Health subsidiary, earned the CARIN Code of Conduct for
Consumer-Facing Applications Accreditation from DirectTrust ® for the Health100
mobile app. Health100 provides consumers with cost transparency and the ability
to reduce out-of-pocket costs, helps them find and access expanded care, and
offers integrated, simpler health care navigation and chronic condition
management, including real-time proactive support to stay on track.
2
Health Care Benefits segment
The Health Care Benefits segment offers a full range of insured and self-insured
(“ASC”) medical, pharmacy, dental and behavioral health products and services.
The segment results for the three and nine months ended September 30, 2026 and
2025 were as follows:
T… …
… M… …
… E… …
… S… …
… … 3… 2… … 2… … … C…
──────────────────────────────────────────────────────────────────────────────
… $ … $ 3… $ … $ 1… $ … $ 3…
…
…
… … 3… … 6… … 2…
…
…
… 9… % … % -… % … % 9… % … %
…
…
… 2… … -…
…
• Total revenues increased 2.4% for the three months ended September 30, 2026
compared to the prior year primarily driven by an increase in the Government
business, partially offset by a decline as a result of the Company’s exit of the
individual exchange business in 2026.
• Adjusted operating income increased significantly in the three months ended
September 30, 2026 compared to the prior year primarily driven by improved
underlying performance in the Government business.
• The MBR decreased to 91.3% in the three months ended September 30, 2026
compared to 92.8% in the prior year primarily driven by improved underlying
performance in the Government business.
• Medical membership as of September 30, 2026 of 26.1 million remained
consistent compared with June 30, 2026.
• Prior years’ health care costs payable estimates developed favorably by $1.3
billion during the nine months ended September 30, 2026.
• Days claims payable were 41.9 days as of September 30, 2026, an increase of
0.2 days compared to June 30, 2026.
3
Health Services segment
The Health Services segment provides a full range of pharmacy benefit management
solutions, delivers health care services in its medical clinics, virtually, and
in the home, and offers provider enablement solutions. The segment results for
the three and nine months ended September 30, 2026 and 2025 were as follows:
Th… Ni…
Mo… Mo…
En… En…
In Se… Se…
m… 20… 30, 20… Ch… 20… 30, 2025 Cha…
──────────────────────────────────────────────────────────────────────────────
T… $ 53… $ 49… $ 4,… $ 15… $ 13… $ 14…
r…
A…
o… 2,… 2,… 56 5,… 5,… 100
i…
P…
c… 48… 47… 6.1 1,… 1,… 10…
p…
(…
• Total revenues increased 9.5% for the three months ended September 30, 2026
compared to the prior year primarily driven by pharmacy drug mix and brand
inflation, partially offset by continued pharmacy client price improvements.
• Adjusted operating income increased 2.7% for the three months ended September
30, 2026 compared to the prior year primarily driven by improved purchasing
economics and pharmacy drug mix, partially offset by continued pharmacy client
price improvements.
• Pharmacy claims processed increased 1.3% on a 30-day equivalent basis for the
three months ended September 30, 2026 compared to the prior year.
4
Pharmacy & Consumer Wellness segment
The Pharmacy & Consumer Wellness segment dispenses prescriptions in its retail
pharmacies and through its infusion operations, provides ancillary pharmacy
services including pharmacy patient care programs and vaccination
administration, and sells a wide assortment of health and wellness products and
general merchandise. The segment also provides pharmacy fulfillment services to
support the Health Services segment’s specialty and mail order pharmacy
offerings. The segment results for the three and nine months ended September 30,
2026 and 2025 were as follows:
Th… Ni…
Mo… Mo…
En… En…
In Se… Se…
m… 20… 30, 20… Ch… 20… 30, 2025 Cha…
──────────────────────────────────────────────────────────────────────────────
T… $ 35… $ 36… $ -7… $ 10… $ 10… $ -4…
r…
A…
o… 1,… 1,… 157 4,… 4,… 178
i…
P…
f… 47… 46… 8.6 1,… 1,… 43…
(…
• Total revenues decreased 2.0% for the three months ended September 30, 2026
compared to the prior year primarily driven by regulatory-related price
reductions on certain drugs, the impact of recent generic drug introductions and
pharmacy reimbursement pressure. These decreases were partially offset by
pharmacy drug mix, increased prescription volume, including contributions from
the Company’s Rite Aid asset acquisitions which were completed during the third
quarter of 2025, and brand inflation.
• Adjusted operating income increased 10.6% for the three months ended September
30, 2026 compared to the prior year primarily driven by core pharmacy strength
and contributions from the Company’s Rite Aid asset acquisitions. These
increases were partially offset by continued business investments and the impact
of consumer dynamics.
• Prescriptions filled increased 1.9% on a 30-day equivalent basis for the three
months ended September 30, 2026 compared to the prior year primarily driven by
increased utilization and incremental volume resulting from the Company’s Rite
Aid prescription file acquisitions, partially offset by the absence of long-term
care pharmacy prescription volume following the deconsolidation of Omnicare, LLC
(“Omnicare”) in September 2025.
5
About CVS Health
CVS Health is a leading health solutions company simplifying health care one
person, one family and one community at a time. As of September 30, 2026, the
Company had approximately 9,000 retail pharmacy locations, more than 1,000 walk-
in and primary care medical clinics and a leading pharmacy benefits manager with
approximately 87 million plan members. The Company also serves an estimated 37
million people through a broad range of health insurance products and related
services. The Company’s integrated model uses personalized, technology driven
services to connect people to simply better health, increasing access to quality
care, delivering better outcomes, and lowering overall costs.
Teleconference and Webcast
The Company will be holding a conference call today for investors at 8:00 a.m.
(Eastern Time) to discuss its third quarter results. An audio webcast of the
call will be broadcast simultaneously for all interested parties through the
Investor Relations section of the CVS Health website at
http://investors.cvshealth.com. This webcast will be archived and available on
the website for a one-year period following the conference call.
Non-GAAP Financial Information
The Company presents both GAAP and non-GAAP financial measures in this press
release to assist in the comparison of the Company’s past financial performance
with its current financial performance. See “Non-GAAP Financial Information”
beginning on page 10and endnotes beginning on page 20for explanations of non-
GAAP financial measures presented in this press release. See pages 12through
14and page 19for reconciliations of each non-GAAP financial measure used in this
release to the most directly comparable GAAP financial measure.
Cautionary Statement Concerning Forward-looking Statements
The Private Securities Litigation Reform Act of 1995 provides a safe harbor for
forward-looking statements made by or on behalf of CVS Health Corporation.
Statements in this press release that are forward-looking include, but are not
limited to, the full-year 2026 guidance information, Mr. Joyner’s quotation and
the information included in the reconciliations and endnotes. By their nature,
all forward-looking statements are not guarantees of future performance or
results and are subject to risks and uncertainties that are difficult to predict
and/or quantify. Actual results may differ materially from those contemplated by
the forward-looking statements due to the risks and uncertainties described in
our Securities and Exchange Commission (“SEC”) filings, including those set
forth in the Risk Factors section and under the heading “Cautionary Statement
Concerning Forward-Looking Statements” in our most recently filed Annual Report
on Form 10-K, our Quarterly Reports on Form 10-Q for the quarterly periods ended
March 31, 2026, June 30, 2026 and September 30, 2026 and our Current Reports on
Form 8-K.
You are cautioned not to place undue reliance on CVS Health’s forward-looking
statements. CVS Health’s forward-looking statements are and will be based upon
management’s then-current views and assumptions regarding future events and
operating performance, and are applicable only as of the dates of such
statements. CVS Health does not assume any duty to update or revise forward-
looking statements, whether as a result of new information, future events,
uncertainties or otherwise.
Investor Contact: Larry McGrath | Executive Vice President, Capital Markets |
(800) 201-0938
Media Contact: Ethan Slavin | Executive Director, Corporate Communications |
(860) 273-6095
- Tables Follow -
6
CVS HEALTH CORPORATION
Condensed Consolidated Statements of Operations
(Unaudited)
In
mill… Three Nine
exce… Months Months
per Ended Ended
share Septem… Septe…
amou… 30, 30,
Reve… 2026 2025 2026 2025
──────────────────────────────────────────────────────────────────────────────
Prod… $ 69,225 $ 64,590 $ 197,670 $ 182,8…
Prem… 34,566 33,719 103,474 100,7…
Serv… 3,961 3,930 11,915 11,135
Net
inve… 647 632 1,862 1,639
inco…
Total 108,3… 102,871 314,921 296,3…
reve…
Oper…
cost…
Cost
of 61,185 57,045 175,491 162,1…
prod…
sold
Heal…
care 32,316 32,020 93,159 92,472
costs
Oper… 11,332 11,288 33,322 33,522
expe…
Good… — 5,725 — 5,725
impa…
Total
oper… 104,8… 106,078 301,972 293,8…
costs
Oper…
inco… 3,566 -3,207 12,949 2,548
(los…
Gain
on
deco… — 483 — 483
of
subs…
Inte… -747 -784 -2,278 -2,332
expe…
Other 30 26 93 83
inco…
Inco…
(los…
befo… 2,849 -3,482 10,764 782
inco…
tax
prov…
Inco…
tax 678 508 2,641 1,977
prov…
Net
inco… 2,171 -3,990 8,123 -1,195
(los…
Net
(inc…
loss
attr… 1 15 -29 20
to
nonc…
inte…
Net
inco…
(los…
attr… $ 2,172 $ -3,975 $ 8,094 $ -1,175
to
CVS
Heal…
Net
inco…
(los…
per
share
attr…
to
CVS
Heal…
Basic $ 1.70 $ -3.13 $ 6.33 $ -0.93
Dilu… $ 1.68 $ -3.13 $ 6.29 $ -0.93
Weig…
aver…
shar…
outs…
Basic 1,282 1,269 1,278 1,266
Dilu… 1,291 1,269 1,286 1,266
7
CVS HEALTH CORPORATION
Condensed Consolidated Balance Sheets
(Unaudited)
September 30, December 31,
In millions 2026 2025
──────────────────────────────────────────────────────────────────────────────
Assets:
Cash and cash equivalents $ 11,738 $ 8,453
Investments 3,149 2,145
Accounts receivable, net 42,073 39,779
Inventories 18,240 19,246
Other current assets 4,192 5,091
Total current assets 79,392 74,714
Long-term investments 34,066 32,669
Property and equipment, 13,322 13,083
net
Operating lease 14,226 14,973
right-of-use assets
Goodwill 85,478 85,478
Intangible assets, net 24,224 25,508
Other assets 7,367 7,113
Total assets $ 258,075 $ 253,538
Liabilities:
Accounts payable $ 17,875 $ 17,641
Pharmacy claims and 26,296 26,344
discounts payable
Health care costs payable 16,858 15,399
Accrued expenses and other
current 25,787 22,387
liabilities
Other insurance 904 1,116
liabilities
Current portion of
operating lease 1,920 1,737
liabilities
Current portion of 3,457 4,068
long-term debt
Total current liabilities 93,097 88,692
Long-term operating lease 12,697 13,643
liabilities
Long-term debt 57,223 60,502
Deferred income taxes 3,866 3,832
Other long-term insurance 4,231 4,716
liabilities
Other long-term 6,272 6,771
liabilities
Total liabilities 177,386 178,156
Shareholders’ equity:
Preferred stock — —
Common stock and capital 51,154 50,402
surplus
Treasury stock -36,769 -36,790
Retained earnings 66,707 61,196
Accumulated other
comprehensive income -595 406
(loss)
Total CVS Health 80,497 75,214
shareholders’ equity
Noncontrolling interests 192 168
Total shareholders’ equity 80,689 75,382
Total liabilities and
shareholders’ $ 258,075 $ 253,538
equity
8
CVS HEALTH CORPORATION
Condensed Consolidated Statements of Cash Flows
(Unaudited)
In millions
Cash flows from operating
activities:
Reconciliation of net income Nine Months Ended
(loss) to net cash provided September 30,
by operating activities: 2026 2025
──────────────────────────────────────────────────────────────────────────────
Net income (loss) $ 8,123 $ -1,195
Adjustments required to
reconcile net
income (loss) to net cash
provided by
operating activities:
Depreciation and amortization 3,373 3,459
Goodwill impairment — 5,725
Stock-based compensation 610 400
Loss on sale of subsidiary — 236
Gain on deconsolidation of — -483
subsidiary
Deferred income taxes and -344 -440
other items
Change in operating assets
and 3,556 -453
liabilities
Net cash provided by
operating 15,318 7,249
activities
Cash flows from investing
activities:
Proceeds from sales and
maturities of 10,382 9,640
investments
Purchases of investments -13,592 -11,045
Purchases of property and -2,357 -2,048
equipment
Acquisitions -15 -429
Other 37 9
Net cash used in investing -5,545 -3,873
activities
Cash flows from financing
activities:
Commercial paper borrowings — -872
(repayments), net
Proceeds from issuance of — 3,969
long-term debt
Repayments of long-term debt -4,057 -3,609
Dividends paid -2,578 -2,552
Proceeds from exercise of 339 308
stock options
Payments for taxes related to
net share -175 -145
settlement of equity awards
Other -66 -7
Net cash used in financing -6,537 -2,908
activities
Net increase in cash, cash
equivalents 3,236 468
and restricted cash
Cash, cash equivalents and
restricted 8,712 8,884
cash at the beginning of the
period
Cash, cash equivalents and
restricted $ 11,948 $ 9,352
cash at the end of the period
9
Non-GAAP Financial Information
The Company uses non-GAAP financial measures to analyze underlying business
performance and trends. The Company believes that providing these non-GAAP
financial measures enhances the Company’s and investors’ ability to compare the
Company’s past financial performance with its current and expected future
performance. These non-GAAP financial measures, which are included in this press
release and which may be referred to on the conference call discussing the
Company’s third quarter financial results, are provided as supplemental
information to the financial measures presented in this press release and
discussed on the conference call that are calculated and presented in accordance
with GAAP. Non-GAAP financial measures should not be considered a substitute
for, or superior to, financial measures determined or calculated in accordance
with GAAP. The Company’s definitions of its non-GAAP financial measures may not
be comparable to similarly titled measures reported by other companies.
Non-GAAP financial measures such as consolidated adjusted operating income,
adjusted earnings per share (“EPS”) and adjusted income attributable to CVS
Health exclude from the relevant GAAP metrics, as applicable: amortization of
intangible assets, net realized capital gains or losses and other items, if any,
that neither relate to the ordinary course of the Company’s business nor reflect
the Company’s underlying business performance.
For the periods covered in this press release, the following items are excluded
from the non-GAAP financial measures described above, as applicable, because the
Company believes they neither relate to the ordinary course of the Company’s
business nor reflect the Company’s underlying business performance:
• The Company’s acquisition activities have resulted in the recognition of
intangible assets as required under the acquisition method of accounting which
consist primarily of trademarks, customer contracts/relationships, covenants not
to compete, technology, provider networks and value of business acquired.
Definite-lived intangible assets are amortized over their estimated useful lives
and are tested for impairment when events indicate that the carrying value may
not be recoverable. The amortization of intangible assets is reflected in
operating expenses within each segment. Although intangible assets contribute to
the Company’s revenue generation, the amortization of intangible assets does not
directly relate to the underwriting of the Company’s insurance products, the
services performed for the Company’s customers or the sale of the Company’s
products or services. Additionally, intangible asset amortization expense
typically fluctuates based on the size and timing of the Company’s acquisition
activity. Accordingly, the Company believes excluding the amortization of
intangible assets enhances the Company’s and investors’ ability to compare the
Company’s past financial performance with its current performance and to analyze
underlying business performance and trends. Intangible asset amortization
excluded from the related non-GAAP financial measure represents the entire
amount recorded within the Company’s GAAP financial statements, and the revenue
generated by the associated intangible assets has not been excluded from the
related non-GAAP financial measure. Intangible asset amortization is excluded
from the related non-GAAP financial measure because the amortization, unlike the
related revenue, is not affected by operations of any particular period unless
an intangible asset becomes impaired or the estimated useful life of an
intangible asset is revised.
• The Company’s net realized capital gains and losses arise from various types
of transactions, primarily in the course of managing a portfolio of assets that
support the payment of insurance liabilities. Net realized capital gains and
losses are reflected in net investment income (loss) within each segment. These
capital gains and losses are the result of investment decisions, market
conditions and other economic developments that are unrelated to the performance
of the Company’s business, and the amount and timing of these capital gains and
losses do not directly relate to the underwriting of the Company’s insurance
products, the services performed for the Company’s customers or the sale of the
Company’s products or services. Accordingly, the Company believes excluding net
realized capital gains and losses enhances the Company’s and investors’ ability
to compare the Company’s past financial performance with its current performance
and to analyze underlying business performance and trends.
• During the three and nine months ended September 30, 2026 and 2025, the
acquisition-related integration costs relate to the acquisitions of Signify
Health, Inc. and Oak Street Health, Inc. The acquisition-related integration
costs are reflected in operating expenses within the Corporate/Other segment.
10
• During the three and nine months ended September 30, 2026, the Omnicare
guarantee relates to an estimated contingent guarantee liability recorded in
connection with agreements to resolve certain litigation and Chapter 11
bankruptcy matters involving Omnicare. Following bankruptcy court approval of
the agreements in August 2026 and the determination that the sale of Omnicare’s
assets is probable of occurring in the fourth quarter of 2026, the Company
recorded an estimated contingent guarantee liability in the third quarter of
2026. The Omnicare guarantee is reflected in operating expenses within the
Corporate/Other Segment.
• During the three and nine months ended September 30, 2025, the goodwill
impairment charge relates to the Health Care Delivery reporting unit within the
Health Services segment.
• During the three and nine months ended September 30, 2025, the Health Care
Delivery clinic closure charge primarily relates to the write down of long-lived
assets in connection with the closure of certain Oak Street Health clinics in
2026, as well as associated severance and employee-related costs. The Health
Care Delivery clinic closure charge was reflected in operating expenses within
the Health Services segment.
• During the three and nine months ended September 30, 2025, the opioid
litigation charge relates to a change in the Company’s accrual related to
ongoing opioid litigation matters.
• During the nine months ended September 30, 2025, the Company recorded legacy
litigation charges related to two court decisions associated with its past
business practices. The legacy litigation charges were reflected in operating
expenses within the Pharmacy & Consumer Wellness and Health Services segments.
• During the nine months ended September 30, 2025, the loss on the wind down and
sale of Accountable Care assets represents the pre-tax loss on the divestiture
of the Company’s Medicare Shared Savings Program (“MSSP”) operations, as well as
costs incurred in connection with the wind down of the Company’s ACO REACH
operations. The loss on Accountable Care assets was reflected in operating
expenses within the Health Services segment.
• During the nine months ended September 30, 2025, the office real estate
optimization charges primarily relate to the abandonment of leased real estate
and the related right-of-use assets and property and equipment in connection
with the Company’s evaluation of corporate office real estate space. The office
real estate optimization charges were reflected in operating expenses within
each segment.
• During the three and nine months ended September 30, 2025, the gain on
deconsolidation of subsidiary relates to Omnicare, a wholly-owned indirect
subsidiary of CVS Health Corporation, and certain of its subsidiary entities
(collectively, the “Omnicare Entities”). In September 2025, the Omnicare
Entities voluntarily initiated Chapter 11 proceedings under the U.S. Bankruptcy
Code, at which time the Company determined that it no longer retained control of
the Omnicare Entities and deconsolidated the subsidiaries.
• The corresponding tax benefit or expense related to the items excluded from
adjusted income attributable to CVS Health and Adjusted EPS above. The nature of
each non-GAAP adjustment is evaluated to determine whether a discrete adjustment
should be made to the adjusted income tax provision.
See endnotes (1) and (2) on page 20for definitions of non-GAAP financial
measures. Reconciliations of each non-GAAP financial measure to the most
directly comparable GAAP financial measure are presented on pages 12through
14and page 19.
11
Reconciliations of Non-GAAP Financial Measures to the Most Directly Comparable
GAAP Financial Measures
Adjusted Operating Income
(Unaudited)
The following are reconciliations of consolidated operating income (loss) (GAAP
measure) to consolidated adjusted operating income, as well as reconciliations
of segment GAAP operating income (loss) to segment adjusted operating income
(loss):
Three
Mont…
Ended
Sept…
30,
2026
──────────────────────────────────────────────────────────────────────────────
Heal… Pha…
In Care Hea… & Cor… Cons…
mi… Bene… Ser… Con… Oth… Tota…
Wel…
Op…
in…
(l… $ 653 $ 1,980 $ 1,573 $ -640 $ 3,5…
(G…
me…
Am…
of 236 126 62 1 425
in…
as…
Net
re…
ca… 23 — — -26 -3
(g…
lo…
Ac…
in… — — — 13 13
co…
Om… — — — 193 193
gu…
Ad…
op… $ 912 $ 2,106 $ 1,635 $ -459 $ 4,1…
in…
(l…
Three
Mont…
Ended
Sept…
30,
2025
──────────────────────────────────────────────────────────────────────────────
Heal… Pha…
In Care Hea… & Cor… Cons…
mi… Bene… Ser… Con… Oth… Tota…
Wel…
Op…
in…
(l… $ 53 $ -3,8… $ 1,414 $ -775 $ -3,…
(G…
me…
Am…
of 294 141 64 1 500
in…
as…
Net
re…
ca… -33 — — 44 11
(g…
lo…
Ac…
in… — — — 27 27
co…
Go… — 5,725 — — 5,7…
im…
He…
Ca…
De… — 83 — — 83
cl…
cl…
ch…
Op…
li… — — — 320 320
ch…
Ad…
op… $ 314 $ 2,050 $ 1,478 $ -383 $ 3,4…
in…
(l…
12
Nine
Mon…
End…
Sep…
30,
2026
──────────────────────────────────────────────────────────────────────────────
Hea… Phar…
In Care Hea… & Corp… Cons…
mi… Ben… Ser… Cons… Other Tota…
Well…
Op…
in…
(l… $ 5,6… $ 4,9… $ 4,1… $ -1,… $ 12,…
(G…
me…
Am…
of 709 398 189 2 1,2…
in…
as…
Net
re… 20 — — 6 26
ca…
lo…
Ac…
in… — — — 35 35
co…
Om… — — — 193 193
gu…
Ad…
op… $ 6,3… $ 5,3… $ 4,3… $ -1,… $ 14,…
in…
(l…
Nine
Mon…
End…
Sep…
30,
2025
──────────────────────────────────────────────────────────────────────────────
Hea… Phar…
In Care Hea… & Corp… Cons…
mi… Ben… Ser… Cons… Other Tota…
Well…
Op…
in…
(l… $ 2,7… $ -1,… $ 3,0… $ -1,… $ 2,5…
(G…
me…
Am…
of 881 426 184 2 1,4…
in…
as…
Net
re…
ca… 1 -15 — 73 59
(g…
lo…
Ac…
in… — — — 100 100
co…
Go… — 5,7… — — 5,7…
im…
He…
Ca…
De… — 83 — — 83
cl…
cl…
ch…
Op…
li… — — — 320 320
ch…
Le…
li… — 291 929 — 1,2…
ch…
Lo…
on
Ac… — 288 — — 288
Ca…
as…
Of…
re…
es… 4 — 2 4 10
op…
ch…
Ad…
op… $ 3,6… $ 5,2… $ 4,1… $ -1,… $ 11,…
in…
(l…
13
Adjusted Earnings Per Share
(Unaudited)
The following are reconciliations of net income (loss) attributable to CVS
Health to adjusted income attributable to CVS Health and calculations of GAAP
diluted earnings (loss) per share and Adjusted EPS:
Three Three
Months Months
Ended Ended
Septe… Septe…
30, 30,
2026 2025
──────────────────────────────────────────────────────────────────────────────
In
mill… Per Per
exce… Total Common Total Common
per Compa… Share Company Share
share
amou…
Net
inco…
(los…
attr…
to $ 2,172 $ 1.68 $ -3,975 $ -3.13
CVS
Heal…
(GAAP
meas…
Amor…
of 425 0.33 500 0.39
inta…
asse…
Net
real…
capi… -3 — 11 0.01
(gai…
loss…
Acqu…
inte… 13 0.01 27 0.02
costs
Omni… 193 0.15 — —
guar…
Good… — — 5,725 4.50
impa…
Heal…
Care
Deli… — — 83 0.07
clin…
clos…
char…
Opio…
liti… — — 320 0.25
char…
Gain
on
deco… — — -483 -0.38
of
subs…
Tax
impa…
of -103 -0.08 -171 -0.13
non-…
adju…
Adju…
inco…
attr… $ 2,697 $ 2.09 $ 2,037 $ 1.60
to
CVS
Heal…
Weig…
aver…
dilu… 1,291 1,269
shar…
outs…
Adju…
weig…
aver…
dilu… 1,291 1,272
shar…
outs…
(non…
Nine Nine
Months Months
Ended Ended
Septe… Septe…
30, 30,
2026 2025
──────────────────────────────────────────────────────────────────────────────
In
mill… Per Per
exce… Total Common Total Common
per Compa… Share Company Share
share
amou…
Net
inco…
(los…
attr…
to $ 8,094 $ 6.29 $ -1,175 $ -0.93
CVS
Heal…
(GAAP
meas…
Amor…
of 1,298 1.01 1,493 1.18
inta…
asse…
Net
real… 26 0.02 59 0.05
capi…
loss…
Acqu…
inte… 35 0.03 100 0.08
costs
Omni… 193 0.15 — —
guar…
Good… — — 5,725 4.50
impa…
Heal…
Care
Deli… — — 83 0.07
clin…
clos…
char…
Opio…
liti… — — 320 0.25
char…
Lega…
liti… — — 1,220 0.96
char…
Loss
on
Acco… — — 288 0.23
Care
asse…
Offi…
real
esta… — — 10 0.01
opti…
char…
Gain
on
deco… — — -483 -0.38
of
subs…
Tax
impa…
of -333 -0.26 -455 -0.36
non-…
adju…
Adju…
inco…
attr… $ 9,313 $ 7.24 $ 7,185 $ 5.66
to
CVS
Heal…
Weig…
aver…
dilu… 1,286 1,266
shar…
outs…
Adju…
weig…
aver…
dilu… 1,286 1,269
shar…
outs…
(non…
14
Supplemental Information
(Unaudited)
The following are reconciliations of financial measures of the Company’s
segments to the consolidated totals:
In
m…
T…
M…
E… Ph…
S… He… &
3… Ca… He… Co… Co… Int… Con…
2… Be… Se… We… Ot… Eli… Tot…
──────────────────────────────────────────────────────────────────────────────
T… $ 36… $ 53… $ 35… $ 205 $ -1… $ 10…
r…
A…
o… 912 2,… 1,… -4… — 4,…
i…
(…
S…
3…
2…
T… $ 35… $ 49… $ 36… $ 133 $ -1… $ 10…
r…
A…
o… 314 2,… 1,… -3… — 3,…
i…
(…
N…
M…
E…
S…
3…
2…
T… $ 11… $ 15… $ 10… $ 478 $ -5… $ 31…
r…
A…
o… 6,… 5,… 4,… -1… — 14…
i…
(…
S…
3…
2…
T… $ 10… $ 13… $ 10… $ 362 $ -5… $ 29…
r…
A…
o… 3,… 5,… 4,… -1… — 11…
i…
(…
_____________________________________________
(a) Intersegment revenue eliminations relate to intersegment revenue generating
activities that occur between the Health Care Benefits segment, the Health
Services segment, and/or the Pharmacy & Consumer Wellness segment.
15
Supplemental Information
(Unaudited)
Health Care Benefits segment
The following table summarizes the Health Care Benefits segment’s performance
for the respective periods:
…
… …
… …
… … …
… … …
… … …
… … …
… … …
… … …
──────────────────────────────────────────────────────────────────────────────
$ … $ … $ …
… … …
… … …
… … …
… … …
% … … …
$ … $ … $ …
% …
$ … $ … $ …
% …
$ … $ … $ …
% …
$ … $ … $ …
… … …
The following table summarizes the Health Care Benefits segment’s medical
membership for the respective periods:
──────────────────────────────────────────────────────────────────────────────
… … … … …
The following table summarizes the Health Care Benefits segment’s days claims
payable for the respective periods:
September June 30, December September
30, 2026 2026 31, 2025 30, 2025
──────────────────────────────────────────────────────────────────────────────
Days
Claims 41.9 41.7 38.9 42.5
Payable(7)
16
Supplemental Information
(Unaudited)
Health Services segment
The following table summarizes the Health Services segment’s performance for the
respective periods:
…
… …
… …
… … … …
… … … …
… … … …
… … … …
… … … …
… … … …
──────────────────────────────────────────────────────────────────────────────
$ … $ … $ … $ …
… … … …
— … … …
… … … …
… … … …
… … … …
… … … …
% … % …
$ … $ … $ … $ …
% … % …
$ — $ — $ … $ …
… … … … … …
% … % …
$ … $ … $ … $ …
% … % …
… … … …
17
Supplemental Information
(Unaudited)
Pharmacy & Consumer Wellness segment
The following table summarizes the Pharmacy & Consumer Wellness segment’s
performance for the respective periods:
…
…
…
… … …
… … …
… … …
… … …
… … …
… … … … … %
──────────────────────────────────────────────────────────────────────────────
$ … $ … $ … $ $ % … …
… … … % … …
… … … % … …
… … … % … …
… … … % … …
… % … % … % …
$ … $ … $ … $ $ % … …
… % … % … % …
$ … $ … $ … $ $ % … …
… % … % … % …
$ … $ … $ … $ $ % … …
… % … % … % …
$ … $ … $ … $ $ % … …
… … … % … …
… … … % … …
… … … % … …
… % … % … % …
… % … % … % …
… % … % … % …
… % … % … % …
18
Adjusted Earnings Per Share Guidance
(Unaudited)
The following reconciliations of projected net income attributable to CVS Health
to projected adjusted income attributable to CVS Health and calculations of
projected GAAP diluted EPS and projected Adjusted EPS contain forward-looking
information. All forward-looking information involves risks and uncertainties.
Actual results may differ materially from those contemplated by the forward-
looking information for a number of reasons as described in our SEC filings,
including those set forth in the Risk Factors section and under the heading
“Cautionary Statement Concerning Forward-Looking Statements” in our most
recently filed Annual Report on Form 10-K and our most recently filed Quarterly
Report on Form 10-Q. See “Non-GAAP Financial Information” earlier in this press
release and endnote (2) later in this press release for more information on how
we calculate Adjusted EPS.
Year Ending
December 31, 2026
──────────────────────────────────────────────────────────────────────────────
At Least
In millions, except per share Total Per
amounts Company Common
Share
Net income attributable to CVS
Health $ 9,002 $ 6.98
(GAAP measure)
Non-GAAP adjustments:
Amortization of intangible 1,730 1.34
assets
Net realized capital losses 26 0.02
Acquisition-related 80 0.06
integration costs
Omnicare guarantee 193 0.15
Tax impact of non-GAAP -460 -0.35
adjustments
Adjusted income attributable
to CVS $ 10,571 $ 8.20
Health(2)
Weighted average diluted
shares 1,289
outstanding
19
Endnotes
(1) The Company defines adjusted operating income as operating income (loss)
(GAAP measure) excluding the impact of amortization of intangible assets, net
realized capital gains or losses and other items, if any, that neither relate to
the ordinary course of the Company’s business nor reflect the Company’s
underlying business performance, such as acquisition-related integration costs,
the Omnicare guarantee, goodwill impairment charges, Health Care Delivery clinic
closure charges, opioid litigation charges, certain legacy litigation charges,
losses on Accountable Care assets and office real estate optimization charges.
The chief operating decision maker (the “CODM”) uses adjusted operating income
as its principal measure of segment performance as it enhances the CODM’s
ability to compare past financial performance with current performance and
analyze underlying business performance and trends. The consolidated measure is
not determined in accordance with GAAP and should not be considered a substitute
for, or superior to, the most directly comparable GAAP measure, consolidated
operating income (loss). See “Non-GAAP Financial Information” earlier in this
press release for additional information regarding the items excluded from
consolidated operating income (loss) in determining consolidated adjusted
operating income.
(2) GAAP diluted earnings (loss) per share and Adjusted EPS, respectively, are
calculated by dividing net income (loss) attributable to CVS Health and adjusted
income attributable to CVS Health by the Company’s weighted average diluted
shares outstanding. The Company defines adjusted income attributable to CVS
Health as net income (loss) attributable to CVS Health (GAAP measure) excluding
the impact of amortization of intangible assets, net realized capital gains or
losses and other items, if any, that neither relate to the ordinary course of
the Company’s business nor reflect the Company’s underlying business
performance, such as acquisition-related integration costs, the Omnicare
guarantee, goodwill impairment charges, Health Care Delivery clinic closure
charges, opioid litigation charges, certain legacy litigation charges, losses on
Accountable Care assets, office real estate optimization charges, the gain on
deconsolidation of subsidiary, as well as the corresponding income tax benefit
or expense related to the items excluded from adjusted income attributable to
CVS Health. Adjusted EPS for the three and nine months ended September 30, 2025
is calculated utilizing weighted average diluted shares outstanding, which
include potential common shares in each period, as the impact of the potential
common shares was dilutive. The potential common shares were excluded from the
calculations of GAAP loss per share for the three and nine months ended
September 30, 2025, as the shares would have had an anti-dilutive effect as a
result of the GAAP net loss in each period. See “Non-GAAP Financial Information”
earlier in this press release for additional information regarding the items
excluded from net income (loss) attributable to CVS Health in determining
adjusted income attributable to CVS Health.
(3) Medical benefit ratio is calculated by dividing the Health Care Benefits
segment’s health care costs by premium revenues and represents the percentage of
premium revenues spent on medical benefits for the segment’s insured members.
Management uses MBR to assess the underlying business performance and
underwriting of its insurance products, understand variances between actual
results and expected results and identify trends in period-over-period results.
MBR provides management and investors with information useful in assessing the
operating results of the Health Care Benefits segment’s insured products.
(4) Medical membership represents the number of members covered by the Health
Care Benefits segment’s insured and ASC medical products and related services at
a specified point in time. Management uses this metric to understand variances
between actual medical membership and expected amounts as well as trends in
period-over-period results. This metric provides management and investors with
information useful in understanding the impact of medical membership on the
Health Care Benefits segment’s total revenues and operating results.
(5) Pharmacy claims processed represents the number of prescription claims
processed through the Company’s pharmacy benefits manager and dispensed by
either its retail network pharmacies or the Company’s mail and specialty
pharmacies. Prescriptions filled represents the number of prescriptions
dispensed through the Pharmacy & Consumer Wellness segment’s retail pharmacies
and infusion services operations, as well as through the Omnicare long-term care
pharmacies prior to their deconsolidation in September 2025. Management uses
these metrics to understand variances between actual claims processed and
prescriptions dispensed, respectively, and expected amounts as well as trends in
period-over-period results. These metrics provide management and investors with
20
information useful in understanding the impact of pharmacy claim volume and
prescription volume, respectively, on segment total revenues and operating
results.
(6) Includes an adjustment to convert 90-day prescriptions to the equivalent of
three 30-day prescriptions. This adjustment reflects the fact that these
prescriptions include approximately three times the amount of product days
supplied compared to a normal prescription.
(7) Days claims payable is calculated by dividing the Health Care Benefits
segment’s health care costs payable at the end of each quarter by its average
health care costs per day during such quarter. Management and investors use this
metric as one of the indicators of the adequacy of the health care costs payable
liability at the end of each quarter.
(8) Gross profit is calculated as the segment’s total revenues less its cost of
products sold, and, for the Health Services segment, health care costs. Gross
margin is calculated by dividing the segment’s gross profit by its total
revenues and represents the percentage of total revenues that remains after
incurring direct costs associated with the segment’s products sold and services
provided. Gross margin provides investors with information that may be useful in
assessing the operating results of the Company’s Health Services and Pharmacy &
Consumer Wellness segments.
(9) Same store sales and prescription volume represent the change in revenues
and prescriptions filled in the Company’s retail pharmacy stores that have been
operating for greater than one year and digital sales initiated online or
through mobile applications and fulfilled through the Company’s distribution
centers, expressed as a percentage that indicates the increase or decrease
relative to the comparable prior period. Same store metrics exclude revenues and
prescriptions from infusion services operations and long-term care pharmacies.
Management uses these metrics to evaluate the performance of existing stores on
a comparable basis and to inform future decisions regarding existing stores and
new locations. Same-store metrics provide management and investors with
information useful in understanding the portion of current revenues and
prescriptions resulting from organic growth in existing locations versus the
portion resulting from opening new stores.
21