NYSE: CVS · Health Care Services
CVS Health
CVS Health combines health insurance (Aetna, more than 37 million people), a pharmacy benefit manager (CVS Caremark, about 87 million plan members), health care delivery (Oak Street primary care, MinuteClinic) and about 9,000 retail pharmacy locations. 2025 revenue was $402.1 billion (+7.8%). GAAP net income fell to $1.8 billion because of a $5.7 billion goodwill impairment in the Health Care Delivery reporting unit and $1.2 billion of legacy litigation charges, including Omnicare False Claims Act penalties. Adjusted operating income rose to $14.4 billion as the Health Care Benefits segment recovered. In August 2026 CVS raised its 2026 guidance to GAAP EPS of $6.84–7.04.
Last updated
Analysis last edited: November 6, 2026 · Financial data fetched: October 17, 2026 10:07 (SEC EDGAR) · Source 10-K filed: February 10, 2026
Built on10-K FY2025 · filed 2026-02-1010-Q (quarter ended 2026-09-30) · filed 2026-11-04
Next update expectedAfter FY2026’s 10-K is filed (roughly 60–90 days after fiscal year end (sooner for larger filers)), financials and analysis will be refreshed.
01
At a glanceFrom SEC data
Eight headline measures, each placed among the companies covered on this site.
- Revenue growthCAGRSmooths out year-to-year swings into "grew X% a year on average." Makes growth pace comparable across companies of very different sizes.
- 8.4%
- Operating marginOperating marginHow many cents of operating profit are left per dollar of revenue. Reflects pricing power and cost structure.
- 1.2%
- ROIC minus WACCROIC − WACC spreadThe difference between ROIC and WACC. Consistently positive implies value creation; consistently negative implies value destruction.
- -3.9 pts
- Net debt ÷ EBITDAEBITDAOperating income with D&A added back. A rough proxy for cash-generating power that’s less distorted by capital intensity, depreciation method, or financing/tax differences than net income.
- 5.8x
- Cash conversionOperating CF ÷ net income (cash conversion)How much of reported profit shows up as actual cash. 1x or higher means profit is backed by cash.
- 6.02x
- Dividend raisesDividend per shareTotal annual dividend paid per share (sum of all declared payments for the year).
- 0 of 5
- P/E todayP/EShare price ÷ EPS — how many years of current earnings the stock price represents. This site uses the period-end figure as reported in the filing.
- 9.4x
- Betaβ (beta)How much a stock moves, on average, for a 1% move in the overall market. Above 1 means more volatile than the market, which raises the return shareholders require. This site computes it from about 2.5 years (roughly 130 weeks) of weekly returns, built from Yahoo Finance daily prices, regressed against an S&P 500 ETF (SPY) as the market proxy, then applies the well-known long-run mean-reversion adjustment (0.67 × β + 0.33) as the WACC default.
- 0.59
Higher than 50% of 372 non-financial companies
Average yearly growth over the years shown
Higher than 6% of 311 non-financial companies
Latest fiscal year (FY2025)
Higher than 14% of 311 non-financial companies
Return on capital above (or below) its estimated cost
Higher than 92% of 304 non-financial companies
Below 0 means more cash than debt
Higher than 95% of 349 non-financial companies
Operating cash flow ÷ net income
Years the dividend per share rose, of the last 5
Latest close 2026-11-04; trailing 12 months to 2026-09-30
Above 1 = moves more than the market
Each marker shows where this company sits among the non-financial companies covered on this site, not all listed companies (left = lowest, right = highest). A high position is not automatically good — for net debt ÷ EBITDA, higher means more debt. Details and formulas are in the sections below and in How to read this.
02
Valuation todayFrom SEC data
Price-based measures at the latest close, next to the same measures at the last fiscal year-end.
Share price$81.22close on 2026-11-04
Market cap$103.23B
- P/EP/EShare price ÷ EPS — how many years of current earnings the stock price represents. This site uses the period-end figure as reported in the filing. today
- 9.4x
- P/BP/BShare price ÷ book value per share. Below 1x means the market values the company below its accounting net worth. This site uses the closing price nearest the fiscal year-end and highlights sub-1x readings. today
- 1.4x
- EV/EBITDAEV/EBITDAEnterprise value (≈ market cap + interest-bearing debt − cash) as a multiple of EBITDA — roughly, "how many years of EBITDA to buy the whole company." Lower is generally viewed as cheaper, and it’s more comparable than P/E across companies with different debt loads or depreciation policies. This site excludes noncontrolling interests from the EV calculation. today
- 17.0x
- FCF yieldFree cash flow (FCF)Operating CF minus capital expenditures — cash generated by the business after funding its own investment, available for dividends, buybacks, acquisitions, or debt paydown. Acquisitions and securities purchases (also in investing CF) are not subtracted, so FCF can be positive in a year when total investing CF exceeds operating CF. today
- 7.6%
- Dividend yieldDividend per shareTotal annual dividend paid per share (sum of all declared payments for the year). today
- 3.3%
At FY2025 year-end: 57.1x
Earnings: trailing 12 months to 2026-09-30
At FY2025 year-end: 1.3x
Book value at FY2025 year-end
At FY2025 year-end: 16.9x
EBITDA for FY2025
At FY2025 year-end: 7.7%
Free cash flow for FY2025
Dividends per share for FY2025
“Today” uses the latest closing price (2026-11-04, Yahoo Finance daily closing prices) and shares outstanding at the last fiscal year-end. The rest of this page — including the financial table and ROIC vs. WACC — uses fiscal year-end prices. These are reference figures, not a judgment of whether the stock is cheap or expensive.
03
What changed since last earningsFrom SEC data
The latest reported quarter against the same quarter a year earlier, the balance sheet against the previous quarter-end, and what management said in its latest earnings release.
Quarter ended Sep 30, 2026.
- Revenue$102.87B → $108.4B (vs. a year earlier)↑ +5.4%$102.87B → $108.4B (vs. a year earlier)
- Operating margin-3.1% → 3.3% (vs. a year earlier)↑ +6.4 pts-3.1% → 3.3% (vs. a year earlier)
- Net income−$3.98B → $2.17B (vs. a year earlier)↑ $2.17B−$3.98B → $2.17B (vs. a year earlier)
- Diluted EPS$-3.13 → $1.68 (vs. a year earlier)↑ $1.68$-3.13 → $1.68 (vs. a year earlier)
- Cash$11.33B → $11.74B (vs. previous quarter-end)↑ +3.6%$11.33B → $11.74B (vs. previous quarter-end)
Source: Form 10-Q ↗ (SEC XBRL). Long-term debt is the tagged long-term debt figure and leaves out short-term borrowings.
From the earnings release of Nov 4, 2026.
Management outlook ↑ Raised
Increased 2026 EPS and cash flow guidance. Source sentence
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.
Key changes
Adjusted EPS guidance now at least $8.20, from $7.90–$8.10. Source sentence
◦ Adjusted EPS guidance to at least $8.20 from a range of $7.90 to $8.10
Q3 revenues up 5.4% to $108.4B. Source sentence
Third quarter total revenues increased to $108.4 billion, up 5.4% year-over-year
Adjusted EPS $2.09 versus $1.60. Source sentence
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.
Written by AI. A line appears only if its figures and direction match the quoted sentence, which an automatic check confirms. Companies' outlooks are their own and may not be met. Read the release ↗
04
Company profileFrom SEC dataShow
- Legal name
- CVS HEALTH Corp
- Headquarters
- WOONSOCKET, RI
- Incorporated in
- Delaware
- Fiscal year end
- 12/31
- Exchange & ticker
- NYSE: CVS
- Industry
- Health Care Services
- CIK
- 64803
- Website
- https://www.cvshealth.com/ ↗
Workforce (as of FY2025 year-end)
Employees
300,000
Source: Form 10-K (FY2025) cover page and business description
05
Earnings calendarFrom SEC dataShow
When the company reports each quarter: the quarter-end date, the day results were released, and when the 10-Q or 10-K was filed.
Next report
Q4 FY2026
Quarter end: December 2026. In past years, Q4 results were released 38–43 days after quarter end (Feb 10, 2026; Feb 12, 2025; Feb 7, 2024). No date has been announced in the sources this site uses.
Reporting pattern
- Fiscal year ends around December 31.
- Reports four times a year: three quarterly reports (10-Q) and an annual report (10-K) for Q4.
- Earnings releases came 29–43 days after quarter end over the last 12 quarters.
| Quarter | Quarter ended | Earnings release (8-K) | Report filed (10-Q / 10-K) |
|---|---|---|---|
| Q3 FY2026 | Sep 30, 2026 | Nov 4, 2026 (+35 days) | Nov 4, 2026 10-Q (+35 days) |
| Q2 FY2026 | Jun 30, 2026 | Aug 5, 2026 (+36 days) | Aug 5, 2026 10-Q (+36 days) |
| Q1 FY2026 | Mar 31, 2026 | May 6, 2026 (+36 days) | May 6, 2026 10-Q (+36 days) |
| Q4 FY2025 | Dec 31, 2025 | Feb 10, 2026 (+41 days) | Feb 10, 2026 10-K (+41 days) |
| Q3 FY2025 | Sep 30, 2025 | Oct 29, 2025 (+29 days) | Oct 29, 2025 10-Q (+29 days) |
| Q2 FY2025 | Jun 30, 2025 | Jul 31, 2025 (+31 days) | Jul 31, 2025 10-Q (+31 days) |
| Q1 FY2025 | Mar 31, 2025 | May 1, 2025 (+31 days) | May 1, 2025 10-Q (+31 days) |
| Q4 FY2024 | Dec 31, 2024 | Feb 12, 2025 (+43 days) | Feb 12, 2025 10-K (+43 days) |
| Q3 FY2024 | Sep 30, 2024 | Nov 6, 2024 (+37 days) | Nov 6, 2024 10-Q (+37 days) |
| Q2 FY2024 | Jun 30, 2024 | Aug 7, 2024 (+38 days) | Aug 7, 2024 10-Q (+38 days) |
| Q1 FY2024 | Mar 31, 2024 | May 1, 2024 (+31 days) | May 1, 2024 10-Q (+31 days) |
| Q4 FY2023 | Dec 31, 2023 | Feb 7, 2024 (+38 days) | Feb 7, 2024 10-K (+38 days) |
Source: SEC EDGAR filing history. Release dates are the dates the earnings release was furnished to the SEC on Form 8-K (Item 2.02), which is normally the day results are announced. For a quarter whose 10-Q or 10-K isn’t filed yet, the date is the latest Item 2.02 8-K since the previous report, which may be a preliminary or other results-related update. Fiscal years are labeled by the calendar year in which they end.
06
Flagship products & servicesSite analysis
Health Care Benefits
Aetna
Examples: Medicare Advantage, PDP, commercial, Medicaid
37M+ people.
Health Services
CVS Caremark, Oak Street Health, MinuteClinic
About 87M PBM members; 1,000+ clinics.
Pharmacy & Consumer Wellness
CVS Pharmacy
Examples: Retail and Target-store pharmacies
About 9,000 locations.
Brand names and counts are from the FY2025 Form 10-K.
U.S. and worldwide share of flagship products/services
The filings reviewed give no market share figure for the company's products or services. It calls itself "a leading health solutions company" and ExtraCare one of the largest U.S. retail loyalty programs, without share figures.
Reviewed: Form 10-K (FY2025) · Form 10-Q (quarter ended 2026-06-30)
07
Recent strategic focusSite analysis
2025–2026 developments.
Omnicare deconsolidation
Omnicare (long-term care pharmacy) and related subsidiaries were deconsolidated in September 2025 after a subsidiary bankruptcy; CVS recorded a $483M gain on deconsolidation.
Source: Form 10-K (FY2025)
Q2 2026
Revenue rose 7.3% to $106.1B and GAAP EPS was $2.31; full-year guidance was raised.
Source: Q2 2026 press release
Governance
CEO David Joyner became Chair on January 1, 2026; director Larry Robbins resigned in August 2026.
Source: 8-Ks filed 2025-11-20 and 2026-08-17
Capex ÷ D&A (FY2025)
0.61x
Below depreciation — investment is being pared back
formulacapital expenditures ÷ depreciation & amortization
e.g.$2,832M ÷ $4,606M = 0.61x
termsCapital expenditures (capex) · Depreciation & amortization (D&A)
M&A spend (6-year total)
$18.29B
Latest year: $436M
Cash-flow-statement spending on acquisitions, net of cash acquired
Where the money goes, over time
Unit: $M. Capex went from $2.44B in FY2020 to $2.83B in FY2025
- Capex
- M&A spend
formulacapital expenditures ÷ depreciation & amortization
termsCapital expenditures (capex) · Depreciation & amortization (D&A)
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-02-10
08
Key figures at a glanceFrom SEC data
FY2020–FY2025, 6 years.
Revenue (FY2025)
$402.07B
As reported in the 10-K
Revenue CAGR (5 years)
+8.4%▲favorable
formula(last-period revenue ÷ first-period revenue) ^ (1 ÷ years) − 1
e.g.($402,067M ÷ $268,706M) ^ (1÷5) − 1 = 8.4%
termsCAGR · ^ (exponent) · Revenue (net sales)
Operating margin (FY2025)
1.2%▼caution
-4.0pt vs. 5 years ago
formulaoperating income ÷ revenue × 100
e.g.$4,660M ÷ $402,067M × 100 = 1.2%
ROE (FY2025)
2.3%▼caution
6-year average: 7.8%
As reported in the 10-K
P/B (FY2025 end)
1.34x
formulafiscal year-end closing price ÷ book value per share
e.g.$79.36 ÷ $59.18 = 1.34x
Period-end (fiscal year-end) value, not today's P/B
EV/EBITDA (FY2025 end)
16.9x
formula(market cap + interest-bearing debt − cash and equivalents) ÷ (operating income + depreciation & amortization)
e.g.($100,867M + $64,570M − $8,453M) ÷ ($4,660M + $4,606M) = 16.9x
termsEV/EBITDA · Market capitalization · Interest-bearing debt · EBITDA · Depreciation & amortization (D&A)
Period-end (fiscal year-end) value, not today's multiple
- ▲
Revenue grew +8.4% a year over 5 years (strong growth)
From $268.71B in FY2020 to $402.07B in FY2025. The annualized rate (CAGR) makes it possible to compare growth pace across companies of different sizes.
- ▼
Operating margin declined: 5.2% → 1.2%
How much operating profit is left per $100 of revenue. It moved -4.0 points over 5 years — pricing power, cost control, and product mix all show up here.
- ▼
Equity ratio is 29.7% (relatively heavy reliance on debt)
The share of total assets funded by equity rather than debt. 50%+ is often read as low bankruptcy risk, though the right level varies by industry (real estate and leasing run lower, for instance).
- ▲
Free cash flow was positive in 6 of 6 years
Operating cash flow minus capital expenditures: the cash left over after funding the business’s own investment, available for dividends, buybacks, acquisitions, or debt paydown. A negative year can mean heavy investment, or weak core earnings — worth distinguishing.
- ―
ROE averaged 7.8% over 6 years (latest: 2.3%)
How much profit was generated on shareholders’ equity. Roughly 10%+ is often cited as solid for a U.S. company, though this varies a lot by industry and capital intensity.
09
Business modelSite analysis
Business Model Canvas
The whole company in nine blocks. Left side: how it delivers (partners, activities, resources, costs). Right side: who it serves and how it earns. Every entry comes from the company’s filings shown on this page.
08 · who helps
Key partners
- Target
07 · what it does
Key activities
Health Care Benefits
Insurance underwriting, medical managementHealth Services
Claims processing (1.9B in 2025)- Specialty pharmacy, primary care
Pharmacy & Consumer Wellness
Dispensing, front-store retail
06 · what it draws on
Key resources
Health Care Benefits
Premiums and provider networksHealth Services
Drug purchasing, pharmacy networkPharmacy & Consumer Wellness
Retail stores
02 · why customers buy
Value propositions
- Health plans (Aetna), pharmacy benefits (Caremark) and about 9,000 retail locations; CVS cites store location, convenience and customer service.
04 · how it keeps them
Customer relationships
- ExtraCare Plus subscription membership; plan members enrolled year by year (over 81% of Medicare Advantage members in 4-star-or-higher plans for 2026).
03 · how it reaches them
Channels
- Retail pharmacies (including in Target stores), online, more than 1,000 walk-in and primary care clinics, and employer and government sales.
01 · who it serves
Customer segments
Health Care Benefits
Employers, individuals, government programs (CMS, states)Health Services
Employers, health plans, governmentPharmacy & Consumer Wellness
Consumers
09 · where money goes
Cost structure
FY2025, share of revenue ($402.07B)
- Cost of revenue55.0%
- Other operating costs43.8%
Operating profit left: 1.2% of revenue. Depreciation & amortization (inside the costs above): $4.61B. Capital spending: $2.83B.
Source: Form 10-K income statement and cash-flow statement (SEC XBRL).
05 · how money comes in
Revenue streams
Health Care Benefits
Premiums and fees ($143.4B)Health Services
PBM and pharmacy revenue ($190.4B)Pharmacy & Consumer Wellness
Pharmacy (over 75% of segment revenue) and front store ($139.4B)
Value propositions, channels and customer relationships: Form 10-K (FY2025)
Health Care Benefits (Aetna)
Commercial, Medicare Advantage, Medicare Supplement, Part D and Medicaid health plans.
01 what it draws on
Inputs & resources
- Premiums and provider networks
02 what it does
Activities
- Insurance underwriting, medical management
03 who it serves
Customers
- Employers, individuals, government programs (CMS, states)
04 how money comes in
How it earns
- Premiums and fees ($143.4B)
Health Care Benefits (Aetna): how it makes money
- Adjusted operating income recovered from $307M (2024) to $2.94B (2025).
- More than 81% of MA members are in plans rated 4+ stars for 2026, down from 88%.
Health Services (Caremark, care delivery)
PBM services (plan design, formulary, pharmacy networks, specialty and mail pharmacy) plus clinics, virtual and in-home care.
01 what it draws on
Inputs & resources
- Drug purchasing, pharmacy network
02 what it does
Activities
- Claims processing (1.9B in 2025)
- Specialty pharmacy, primary care
03 who it serves
Customers
- Employers, health plans, government
04 how money comes in
How it earns
- PBM and pharmacy revenue ($190.4B)
Health Services (Caremark, care delivery): how it makes money
- Adjusted operating income $7.15B in 2025.
Pharmacy & Consumer Wellness
About 9,000 retail locations (including pharmacies in Target stores) selling prescriptions and front-store products.
01 what it draws on
Inputs & resources
- Retail stores
02 what it does
Activities
- Dispensing, front-store retail
03 who it serves
Customers
- Consumers
04 how money comes in
How it earns
- Pharmacy (over 75% of segment revenue) and front store ($139.4B)
Pharmacy & Consumer Wellness: how it makes money
- Adjusted operating income $6.04B in 2025.
Government & regulation around the business
Non-market factors from the company’s filings: what governments and regulators fund, buy, set, approve or restrict, and which part of the flow above each one touches.
CVS faces state pharmacy pricing laws, IRA Part D changes and Medicare/Medicaid challenges.
Regulated prices & reimbursement
Pharmacy pricing legislation
Multiple states regulate its ability to manage pricing practices.
Constrains the businessTouches: How it earnsSource: Form 10-K (FY2025)
Regulated prices & reimbursement
IRA Part D changes
The IRA shifts more Part D costs to plans.
Constrains the businessTouches: How it earnsSource: Form 10-K (FY2025)
Government as customer
Government programs and contracts
Faces unique regulatory challenges in Medicare and Medicaid.
Supports and constrainsTouches: Customers · How it earnsSource: Form 10-K (FY2025)
Revenue by segment (FY2025)
Unit: $M — bar length = revenue, (%) = share of total company revenue, margin = segment profit ÷ segment revenue × 100
Health Services
190,425 (40%)profit 7,151 · margin 3.8%
Health Care Benefits
143,354 (30%)profit 2,939 · margin 2.1%
Pharmacy & Consumer Wellness
139,367 (29%)profit 6,040 · margin 4.3%
Source: Form 10-K (FY2025) — segment reconciliation Profit is segment adjusted operating income (non-GAAP). Intersegment eliminations of $71.6B and Corporate/Other (−$1.7B) not shown.
10
Contract structureSite analysisShow
Short-term or spot sales carry different earnings quality than long-term or auto-renewing contracts — this shows how the company actually contracts with its customers.
11
Alliances & capital tiesSite analysisShow
Equity stakes, joint ventures, and strategic partnerships disclosed across the 10-K, 8-Ks, and proxy statement.
Business partnership
Target
CVS operates pharmacies inside Target stores.
Source: Form 10-K (FY2025)
12
Customers & suppliersSite analysis
Who the company sells to and buys from. Companies rarely name either, so named counterparties come only from the company's own filings and press releases; otherwise this lists the concentration figures the 10-K discloses.
Customers
Employers, individuals, health plans, CMS and state governments, and retail consumers.
Named by the company
The 10-K names no single significant customer.
Suppliers
Drug manufacturers, wholesalers and provider networks.
Named by the company
The 10-K doesn't name suppliers.
13
Competitors & peersSite analysis
Competitors the 10-K names, and the peer group the company itself chose in its proxy statement. Nothing here is this site's own pick.
The 10-K names PBM competitors and describes health plan competition.
Competitors named in the 10-K
PBM
- The Cigna Groupsite ↗
- UnitedHealth Groupsite ↗
- Prime Therapeuticssite ↗
- MedImpactsite ↗
Express Scripts (Cigna) and Optum Rx (UnitedHealth Group).
Peer group the company chose
2025 Compensation Peer Group, from the proxy statement. Peers are companies the board considers comparable — for example when setting executive pay — not necessarily direct competitors.
19 diversified companies; unchanged in 2025. Walgreens became private in August 2025.
- AbbViesite ↗
- HCA Healthcaresite ↗
- Microsoftsite ↗
- Bristol-Myers Squibbsite ↗
- Humanasite ↗
- Pfizersite ↗
- Cardinal Healthsite ↗
- IBMsite ↗
- Targetsite ↗
- Cencorasite ↗
- Johnson & Johnsonsite ↗
- UnitedHealth Groupsite ↗
- Centenesite ↗
- McKessonsite ↗
- Walgreens Boots Alliancesite ↗
- The Cigna Groupsite ↗
- Merck & Co.site ↗
- Walmartsite ↗
- Elevance Healthsite ↗
Company names link to this site’s analysis where one exists; “site ↗” opens the company’s own website.
14
Six years of financialsFrom SEC data
Each chart's axis holds a single unit (never mixing dollars, %, and $/share). The table's per-period header links to the filing the numbers came from.
Revenue over time
Unit: $M
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-02-10
Profit over time (operating → net)
Unit: $M
- Operating income
- Pretax income
- Net income
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-02-10
Margins over time
Unit: %
- Operating margin
- Net margin
formulaoperating income ÷ revenue × 100
formulanet income attributable to the company ÷ revenue × 100
Cash flow over time
Unit: $M (below zero = cash went out)
- Operating CF
- Investing CF
- Free CF
formulacash flow from operations − capital expenditures
termsFree cash flow (FCF) · Cash flow from operations (operating CF) · Capital expenditures (capex)
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-02-10
Financial stability & capital efficiency
Unit: %
- Equity ratio
- ROE
formulatotal equity ÷ total assets × 100 (as reported in the 10-K)
termsStockholders’ equity · Total assets
formulanet income ÷ average equity (beginning + ending, ÷2) × 100 (as reported in the 10-K)
termsNet income (attributable to the company) · Stockholders’ equity
Earnings per share (EPS) and dividend per share
Unit: $
- EPS
- Dividend per share
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-02-10
| Line item | FY202010-K on EDGAR ↗ | FY202110-K on EDGAR ↗ | FY202210-K on EDGAR ↗ | FY202310-K on EDGAR ↗ | FY202410-K on EDGAR ↗ | FY202510-K on EDGAR ↗ |
|---|---|---|---|---|---|---|
| Income statement ($M) | ||||||
| Revenue | 268,706 | 292,111 | 322,467 | 357,776 | 372,809 | 402,067 |
| Operating income | 13,911 | 13,310 | 7,954 | 13,743 | 8,516 | 4,660 |
| Pretax income | 9,770 | 10,537 | 5,836 | 11,173 | 6,148 | 2,136 |
| Net income (attributable) | 7,179 | 8,001 | 4,311 | 8,344 | 4,614 | 1,768 |
| Revenue growthcalc(this year’s revenue − last year’s revenue) ÷ last year’s revenue × 100 | — | 8.7% | 10.4% | 10.9% | 4.2% | 7.8% |
| Operating margincalcoperating income ÷ revenue × 100 | 5.2% | 4.6% | 2.5% | 3.8% | 2.3% | 1.2% |
| Net margincalcnet income attributable to the company ÷ revenue × 100 | 2.7% | 2.7% | 1.3% | 2.3% | 1.2% | 0.4% |
| Balance sheet ($M) | ||||||
| Total assets | 230,715 | 232,999 | 228,275 | 249,728 | 253,215 | 253,538 |
| Total equity | 69,701 | 75,075 | 71,769 | 76,636 | 75,730 | 75,382 |
| Interest-bearing debtSum of short- and long-term borrowings, notes/bonds payable | 59,207 | 51,971 | 52,257 | 61,610 | 66,270 | 64,570 |
| Equity ratio | 30.1% | 32.2% | 31.3% | 30.6% | 29.8% | 29.7% |
| ROE | 10.3% | 11.1% | 5.9% | 11.3% | 6.1% | 2.3% |
| Cash flow ($M) | ||||||
| Operating CF | 15,865 | 18,265 | 16,177 | 13,426 | 9,107 | 10,639 |
| Investing CF | -5,534 | -5,261 | -5,047 | -20,889 | -7,613 | -5,871 |
| Financing CF | -7,696 | -11,356 | -10,516 | 2,683 | -1,135 | -4,940 |
| Free cash flowcalccash flow from operations − capital expenditures | 13,428 | 15,745 | 13,450 | 10,395 | 6,326 | 7,807 |
| Cash and equivalents | 7,854 | 9,408 | 12,945 | 8,196 | 8,586 | 8,453 |
| Per share & other | ||||||
| EPS ($) | 5.46 | 6.02 | 3.26 | 6.47 | 3.66 | 1.39 |
| BVPS ($) | 52.97 | 56.79 | 54.98 | 59.36 | 59.97 | 59.18 |
| Dividend per share ($) | 2.00 | 2.00 | 2.20 | 2.42 | 2.66 | 2.66 |
| Payout ratiocalcdividend per share ÷ diluted EPS × 100 | 36.6% | 33.2% | 67.5% | 37.4% | 72.7% | 191.4% |
| P/E (x) | 12.5 | 17.1 | 28.6 | 12.2 | 12.3 | 57.1 |
| EV/EBITDA (x)calc(market cap + interest-bearing debt − cash and equivalents) ÷ (operating income + depreciation & amortization) | 7.7 | 10.1 | 13.2 | 8.6 | 8.7 | 16.9 |
| P/B (x)calcfiscal year-end closing price ÷ book value per share | 1.29 | 1.82 | 1.70 | 1.33 | 0.75 | 1.34 |
P/B and EV/EBITDA use each period’s period-end (fiscal year-end) figures, not the current share price. Periods below 1x are shown in red. Figures without a "calc" tag are as reported in the Form 10-K (the consolidated financial statements and, for older years, earlier 10-Ks), pulled automatically from SEC EDGAR. Where a later filing restated a prior period, the restated figure is used.
Last 8 quarters
Three-month figures from 10-Q filings. Change is versus the same quarter a year earlier. Newest quarter on top.
| Quarter ended | Revenue | Operating income | Net income | Diluted EPS |
|---|---|---|---|---|
| 2026-09-30 | $108.4B+5.4% | $3.57B | $2.17B | $1.68 |
| 2026-06-30 | $106.1B+7.3% | $4.7B+97.5% | $2.98B+191.8% | $2.31 |
| 2026-03-31 | $100.43B+6.2% | $4.68B+38.7% | $2.94B+65.4% | $2.30 |
| 2025-12-31 † | $105.69B+8.2% | $2.11B-10.8% | $2.94B+79.0% | — |
| 2025-09-30 | $102.87B | −$3.21B | −$3.98B | $-3.13 |
| 2025-06-30 | $98.92B | $2.38B | $1.02B | $0.80 |
| 2025-03-31 | $94.59B | $3.37B | $1.78B | $1.41 |
| 2024-12-31 † | $97.71B | $2.37B | $1.64B | — |
† Fourth quarter = the 10-K’s annual figure minus the first three quarters; quarterly EPS isn’t derived this way because share counts change during the year.
15
Is ROIC above WACC?From SEC data
ROIC (the return on money invested in the business) above WACC (the cost of raising that money) means the company is creating value. WACC is an estimate, so its assumptions can be adjusted below.
ROIC (FY2025)
2.5%
formulaoperating income × (1 − tax rate) ÷ invested capital × 100 *invested capital = interest-bearing debt + total equity (average of beginning/ending)
e.g.$4,660M × (1 − 24.5%) ÷ $140,976M × 100 = 2.5%
termsOperating income · Effective tax rate · Invested capital · Interest-bearing debt · Total equity
WACC (this site’s estimate)
6.42%
formulacost of equity × equity weight + cost of debt × (1 − tax rate) × debt weight
e.g.Equity weight: $100.87B ÷ ($100.87B + $64.57B) = 61.0%
e.g.Debt weight: $64.57B ÷ ($100.87B + $64.57B) = 39.0%
e.g.WACC: 8.2% × 61.0% + 4.8% × (1 − 24.5%) × 39.0% = 6.42%
termsCost of equity · Equity weight (E/(D+E)) · Cost of debt · (1 − tax rate) · Debt weight (D/(D+E)) · Market capitalization
How firm is this? With the equity risk premium ±1 point and beta ±0.2, WACC runs 5.5%–7.6% and ROIC − WACC runs −5.1 to −3.0 points. The sign holds across this range. This describes the latest year and does not predict future value creation.
WACC 6.42% is this site’s estimate under the assumptions below (not a figure the company has published)
- Risk-free rate
- 4.95% (10-year Treasury, 2026-11-03)
- β
- 0.59 (price-derived adjusted beta, but correlation with the market is low (R² 0.03), so reliability is limited)
- Equity risk premium
- 5.5%
- Cost of equity
- 8.20%
- Cost of debt
- 4.83%
- Tax rate
- 24.5% (effective rate, FY2023–FY2025)
- Capital structure (equity : debt)
- 61% : 39%
ROIC over time, vs. WACC
Unit: % — bars = each period's ROIC, horizontal line = latest WACC. Bars above the line are green, below are red
- ROIC (above WACC)
- ROIC (below WACC)
- WACC 6.42%
formulaoperating income × (1 − tax rate) ÷ invested capital × 100 *invested capital = interest-bearing debt + total equity (average of beginning/ending)
termsOperating income · Effective tax rate · Invested capital · Interest-bearing debt · Total equity
formulacost of equity × equity weight + cost of debt × (1 − tax rate) × debt weight
termsCost of equity · Equity weight (E/(D+E)) · Cost of debt · (1 − tax rate) · Debt weight (D/(D+E)) · Market capitalization
Try different WACC assumptions
β and the equity risk premium are estimates with a real range of plausible values — move the sliders to check whether ROIC > WACC still holds. The risk-free rate starts at the 10-year Treasury yield on 2026-11-03 (U.S. Treasury).
Initial β: 0.59 (price-derived adjusted beta. Raw β 0.39, R² 0.03, 130 weeks)
formula0.67 × β + 0.33 (β = the slope of weekly stock returns regressed on weekly market returns)
e.g.0.67 × 0.392 + 0.33 = 0.593
termsβ (beta)
Period 2024-05-10–2026-11-04, using S&P 500 ETF (SPY) as the market proxy. Source: Yahoo Finance price history.
formularisk-free rate + β × equity risk premium
e.g.5.0% + 0.59 × 5.5% = 8.2%
termsCAPM · Risk-free rate · β (beta) · Equity risk premium (market risk premium)
formulafiscal year-end closing price × shares outstanding (= market cap)
formulainterest expense ÷ interest-bearing debt × 100 (clamped to 0–10%; falls back to the risk-free rate if there’s no debt)
16
What the price implies (DCF)From SEC data
A company's value can be written as its free cash flow divided by (cost of capital − perpetual growth). Working that backwards from the market's valuation shows how much growth the share price assumed — compared here with the company's actual past growth.
Growth the price implies (price on 2026-11-04)
1.5%
Perpetual FCF growth: g = r − FCF ÷ EV = 6.4% − 5.0%
Past FCF growth (FY2020–FY2025)
-10.3%
Compound annual rate, 5 years
Past revenue growth (FY2020–FY2025)
+8.4%
Compound annual rate, 5 years
Inputs (FY2025): free cash flow $7.81B (operating CF − capex); enterprise value $157.2B = market cap $103.23B (latest close, 2026-11-04) + debt $64.57B − cash and short-term investments $10.6B; r = WACC of 6.4% using this page’s default assumptions (β 0.59, risk-free 5.0%, market premium 5.5%).
Three WACC scenarios
The same calculation under cautious, base and optimistic cost-of-capital assumptions (risk-free rate fixed at the 10-year Treasury yield). Pick one to load it into the sliders below.
Try your own assumptions
V = FCF ÷ (r − g). It starts at the implied growth rate, where the theoretical value equals today’s enterprise value.
Theoretical enterprise value
$159.33B
FCF $7.81B ÷ (6.4% − 1.5%)
Theoretical ÷ actual enterprise value
1.01x
Above 1x: these assumptions value the business above the market did
How sensitive the answer is
Theoretical ÷ actual enterprise value for each combination of r and g.
| g \ r | 4.4% | 5.4% | 6.4% | 7.4% | 8.4% |
|---|---|---|---|---|---|
| 0% | 1.13x | 0.92x | 0.78x | 0.67x | 0.59x |
| 2% | 2.07x | 1.46x | 1.13x | 0.92x | 0.78x |
| 4% | 12.42x | 3.55x | 2.07x | 1.46x | 1.13x |
| 6% | — | — | 12.42x | 3.55x | 2.07x |
| 8% | — | — | — | — | 12.42x |
A simplified model for seeing what the market price assumes, not a forecast or a target price. It treats free cash flow as growing at one constant rate forever; the result swings widely with small changes in r and g, and is undefined when g reaches r. Free cash flow here is operating cash flow minus capex, which is after interest — a full DCF of enterprise value would use cash flow before interest. Market cap uses the latest close (2026-11-04) × shares at fiscal year-end; free cash flow and WACC inputs are from the latest fiscal year.
17
Earnings qualityFrom SEC dataShow
The same reported profit can mean different things depending on whether it's backed by cash, driven by the core business, or the result of a one-off item. Four checks below.
- ✓
Operating CF ÷ net income: averages 2.97x
Profit is backed by cash coming in.
- ✓
Accrual ratio (latest): -3.5%
A small share of profit rests on accounting estimates.
- ✓
Core-earnings share (operating income ÷ pretax income): 218%
Most profit comes from core operations.
- ✓
Days sales outstanding: 30 → 35 days
No major slowdown in collecting on sales.
Operating CF vs. net income
Unit: $M — operating CF above net income means profit is backed by cash
- Operating CF
- Net income
formulacash flow from operations ÷ net income attributable to the company
termsCash flow from operations (operating CF) · Net income (attributable to the company)
formula(net income − operating CF) ÷ average total assets × 100
termsNet income (attributable to the company) · Cash flow from operations (operating CF) · Total assets
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-02-10
Profit bridge (FY2025)
Unit: $M — what moved profit from operating income to net income
- Profit (each stage)
- Pushed profit up
- Pushed profit down
formulaoperating income ÷ income before income taxes × 100
termsOperating income · Income before income taxes (pretax income)
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-02-10
Receivables & inventory days
Unit: days — days grow when receivables or inventory build up faster than sales
- Days sales outstanding
- Days inventory outstanding
formulaaverage receivables (opening + closing ÷ 2) ÷ revenue × 365
formulaaverage inventory (opening + closing ÷ 2) ÷ cost of revenue × 365
termsInventory · Cost of revenue (COGS)
Worked examples (latest period)
formulacash flow from operations ÷ net income attributable to the company
e.g.$10,639M ÷ $1,768M = 6.02x
termsCash flow from operations (operating CF) · Net income (attributable to the company)
formulaoperating income ÷ income before income taxes × 100
e.g.$4,660M ÷ $2,136M × 100 = 218%
termsOperating income · Income before income taxes (pretax income)
formulaaverage receivables (opening + closing ÷ 2) ÷ revenue × 365
e.g.($36,469M + $39,779M) ÷ 2 ÷ $402,067M × 365 = 35 days
formulaaverage inventory (opening + closing ÷ 2) ÷ cost of revenue × 365
e.g.($18,107M + $19,246M) ÷ 2 ÷ $221,167M × 365 = 31 days
termsInventory · Cost of revenue (COGS)
18
Who holds the sharesFrom SEC dataShow
How much of the stock large institutional investors report owning on SEC Form 13F, how much the directors and executive officers hold (and how much of the vote they control), and roughly how much is left for individual investors. Shown next to beta so the holder mix can be read alongside how much the stock swings.
Institutions, insiders and everyone else, 13F holdings as of 2026-06-30
“Everyone else” is what remains after shares reported on Form 13F and shares held by directors and executive officers: mostly individual investors, plus non-insider families or foundations and smaller or foreign institutions. The figures have different dates and 13F reports count some shares twice — read it as an approximate split.
- Held by 13F filers
- 89.2%
- Directors & officers (shares)
- <1%
- Everyone else (est.)
- 10.8%
- Directors & officers (voting power)
- <1%
- Institutional-ownership rank
- 204 of 416
- Beta (adjusted)
- 0.59
individuals and other non-13F holders
no separate voting figure; shown as shares
1 = most institutional; 49% of covered companies have more
above 1 = swings more than the market
- 1,140.6M shares reported by 2,064 13F filers ÷ 1,279.0M shares outstanding on 2026-07-29. Option positions are excluded.
- Directors and executive officers as a group, from the proxy statement’s beneficial-ownership table; includes shares they can acquire within 60 days.
- A large “everyone else” share can still reflect a family, trust or foundation stake held outside the board; check the proxy statement’s 5% holders.
Sources: SEC Form 13F data set (holdings as of 2026-06-30) · Form DEF 14A filed 2026-04-03 (beneficial ownership table) · Form 10-Q cover page (shares outstanding as of 2026-07-29)
19
Strengths & weaknessesSite analysis
Strengths
1. Integrated scale
Insurance, PBM, care delivery and retail under one company; revenue of $402B.
Evidence: Form 10-K (FY2025)
2. Insurance recovery
Health Care Benefits adjusted operating income rose nearly tenfold in 2025.
Evidence: Form 10-K (FY2025)
3. Raised outlook
2026 guidance raised in August 2026; operating cash flow guidance to at least $11.5B.
Evidence: Q2 2026 press release
Weaknesses
1. Care delivery write-down
A $5.7B goodwill impairment on Health Care Delivery in 2025.
Evidence: Form 10-K (FY2025) MD&A
2. Litigation
$1.2B of legacy litigation charges in 2025 (Omnicare False Claims Act case and PBM reporting case) plus opioid charges.
Evidence: Form 10-K (FY2025)
3. Thin net margin
Net income was 0.4% of revenue in 2025.
Evidence: SEC EDGAR XBRL
20
What draws investors to itSite analysis
Why the stock can look attractive to investors — each point paired with what has to hold for it to stay true, and the opposing view. This is this site's analysis, not a recommendation to buy or sell.
P/E (FY2025)
57.1x
Price at fiscal year-end ÷ diluted EPS
Dividend yield (FY2025)
3.35%
Dividends per share ÷ fiscal year-end price
Payout ratio (FY2025)
191%
Dividends per share ÷ diluted EPS
FCF yield (FY2025)
7.7%
(Operating CF − capex) ÷ market cap
1. Earnings recovery
Adjusted EPS guidance of $7.90–8.10 for 2026.
- What has to hold
- Insurance margins keep improving.
- The other side
- Regulatory changes in Medicare and PBMs.
Evidence: Q2 2026 press release
2. Dividend
$2.66 per share in 2024 and 2025.
- What has to hold
- Cash flow covers it.
- The other side
- Dividend was flat in 2025.
Evidence: SEC EDGAR XBRL
GAAP 2025 results include a $5.7B goodwill impairment and $1.2B of legacy litigation charges.
21
ResilienceSite analysisShow
How well the company could absorb a bad year: its financial buffer, how its revenue and profit held up in the worst year on record, and what the 10-K says about the business's exposure to shocks. Figures and filing statements only — no overall rating.
1. Financial buffer (FY2025)
Cash & short-term investments ÷ debt due within a year
2.6x
$10.6B vs. $4.07B
Interest coverage (operating income ÷ interest expense)
1.5x
$4.66B vs. $3.12B
Free cash flow ÷ dividends paid
2.3x
$7.81B vs. $3.4B (FCF = operating CF − capex)
2. Worst year in the record, and the recovery
| Figure | Worst year-over-year change | Back to the prior level? |
|---|---|---|
| Revenue | No decline in the record | — |
| Operating income | -45.3% in FY2025 ($8.52B → $4.66B) | Not yet, as of FY2025 |
Covers only the 6 fiscal years on record (FY2020–FY2025), which may not include a full recession — the worst year here isn’t necessarily how the company would fare in a severe downturn.
3. Business resilience (from the 10-K)
Diversification
Three large segments with different economic drivers.
Source: Form 10-K (FY2025)
Cash flow
Operating cash flow was $10.6B in 2025.
Source: SEC EDGAR XBRL
22
Legal & regulatory mattersSite analysisShow
Lawsuits, government investigations, enforcement actions and settlements the company discloses — where each stands, what is at stake, and what comes next. From the 10-K's Legal Proceedings and contingencies note, the latest 10-Q, and 8-Ks.
CVS carries heavy legal exposure: $3.4 billion of remaining opioid accruals, a DOJ Controlled Substances Act suit, FCA judgments against Omnicare and Caremark, PBM pricing litigation, and Medicare Advantage investigations. In July 2026 it reached a proposed FTC settlement covering its PBM investigations, including the insulin case.
4 open matters (1 flagged as major) · 1 settled or closed
Opioid litigation and DOJ Controlled Substances Act suit
PendingProduct liabilityMajor45 states, D.C. and territories (national settlement); Florida, West Virginia, New Mexico and Nevada (separate); Maryland subdivisions, Philadelphia, hospitals; DOJ (D.R.I.)
Most governmental opioid claims are settled, and a third-party payor deal awaits class approval. Maryland opted out, and other non-participating plaintiffs continue. A Florida hospital case ended in a directed verdict for CVS in May 2026, which plaintiffs appealed. In December 2024 the DOJ intervened in a qui tam suit alleging nationwide CSA and FCA violations in filling opioid prescriptions.
- Amounts
- About $3.4 billion of opioid accruals remained at June 30, 2026.
Source: Form 10-Q (quarter ended 2026-06-30) — Legal Proceedings
FTC PBM investigations and insulin case
PendingAntitrustFederal Trade Commission
The FTC's September 2024 administrative complaint alleged the three largest PBMs artificially raised insulin costs. A July 2026 proposed settlement would resolve all FTC investigations of CVS's PBM and pharmacy businesses, covering rebates, networks, contracts and vertical integration.
- Next step
- After a public comment period, the FTC decides whether to issue a final order; its litigation is halted meanwhile.
Source: Form 10-Q (quarter ended 2026-06-30) — Legal Proceedings
Caremark Medicare Part D FCA judgment (Behnke)
On appealLawsuitU.S. ex rel. Behnke v. CVS Caremark (E.D. Pa.; 3d Cir.)
After a bench trial, the court found Caremark liable for misreporting prices paid to pharmacies in Part D data.
- Amounts
- $291 million judgment, reserved in 2025.
- Next step
- CVS has appealed to the Third Circuit.
Source: Form 10-Q (quarter ended 2026-06-30) — Legal Proceedings
PBM pricing, 340B and Medicare Advantage matters
PendingGovernment investigationState AGs, subdivisions and private plaintiffs (MDL, D.N.J.); hospital systems; DOJ, HHS and state AGs; U.S. ex rel. Shea v. Aetna (D. Mass.)
Lawsuits allege manufacturer rebates inflated drug prices; hospitals sue over 340B reimbursement; and agencies are investigating PBM practices. The DOJ intervened in May 2025 in a suit alleging kickbacks to Medicare Advantage brokers, and is investigating Medicare risk-adjustment coding.
Source: Form 10-Q (quarter ended 2026-06-30) — Legal Proceedings
Omnicare False Claims Act judgment
SettledEnforcement / sanctionU.S. ex rel. Bassan v. Omnicare and CVS Health (S.D.N.Y.); DOJ; Omnicare Chapter 11
A jury found Omnicare filled prescriptions without valid prescriptions, with trebled damages of about $407 million plus $542 million of penalties. CVS was jointly liable for $165 million. In July 2026 CVS agreed with the DOJ and Omnicare's creditors' committee on a resolution, subject to bankruptcy court approval.
- Amounts
- The DOJ receives at least $440 million; CVS pays $130 million and guarantees collection of $310 million from Omnicare by March 2028.
Source: Form 10-Q (quarter ended 2026-06-30) — Legal Proceedings
Based on Form 10-Q (quarter ended 2026-06-30) — Legal Proceedings, reviewed 2026-10-18. Routine ordinary-course claims are not listed. “Major” is this site’s judgment of which matters could materially affect results.
23
Risks (including geopolitical)Site analysis
Starting from the 10-K's Risk Factors section, organized by category — geopolitical, currency, raw materials, regulatory, disaster, and more — with impact and likelihood assessed by this site.
Risk map
Vertical = impact on results, horizontal = likelihood. Upper right = most severe. Numbers match the list below (placement is this site’s own assessment).
Likelihood →
"Company disclosure" vs. "this site’s assessment"
The description and mitigation for each risk are this site’s summary of the 10-K’s "Risk Factors" section. Impact and likelihood are this site’s own assessment, not the company’s — where the company discloses its own likelihood assessment, that is noted in the summary.
Impact is judged from how large the affected business is relative to total revenue/profit, and from the risk’s track record of moving results in the past. Likelihood is judged from the filing’s wording and the current business environment (already occurring, or recurring). See the rating criteria.
- 1Law & regulation
Government programs and PBM regulation
- Company disclosure (summarized from the 10-K)
- Medicare Advantage reimbursement depends on star ratings, and the Inflation Reduction Act changed Part D earnings patterns.
- Company’s stated mitigation
- Not stated in the filings.
- This site’s assessment
- Impact High / Likelihood High
- 2Competition & technology shift
Competition
- Company disclosure (summarized from the 10-K)
- PBM rivals include Express Scripts (Cigna), Optum Rx (UnitedHealth), Prime Therapeutics and MedImpact; health plans compete with Blue Cross plans and Original Medicare.
- Company’s stated mitigation
- Not stated in the filings.
- This site’s assessment
- Impact Med / Likelihood High
- 3Demand & macro
Medical cost trends
- Company disclosure (summarized from the 10-K)
- Higher utilization raises health care costs.
- Company’s stated mitigation
- Not stated in the filings.
- This site’s assessment
- Impact Med / Likelihood Med
- 4Funding & liquidity
Debt
- Company disclosure (summarized from the 10-K)
- Interest-bearing debt was about $64.6B at the end of 2025.
- Company’s stated mitigation
- The proxy cites the company's commitment to deleveraging.
- This site’s assessment
- Impact Med / Likelihood Low
24
What changed in the risk factorsFrom SEC data
Paragraphs in the latest 10-K's Risk Factors that have little overlap with the year before, and paragraphs that were dropped.
New or substantially reworded (5)
• Our Health Care Benefits segment’s operating results and competitiveness is heavily impacted, in the case of Medicaid programs, by the sufficiency of the rates the states determine are actuarially sound based on experience from previous years. Such rate levels may not be representative of actual experience, and insufficient rates will negatively impact our revenues and operating results.
• Direct-to-consumer (“DTC”) sales of prescription drugs by pharmaceutical companies is a growing trend in the United States. Read more
By implementing DTC sales platforms, pharmaceutical companies can advertise, or sell, their own branded drugs directly to patients, bypassing traditional distribution channels and intermediaries, including pharmacies and PBMs. DTC platforms may also increase demand for expensive, brand-name drugs that may not provide significant clinical benefit over more cost-effective alternatives. As a result, the DTC trend may increase overall health care costs for consumers and adversely impact the performance of the Company’s Pharmacy & Consumer Wellness and Health Services segments.
• State Medicaid agencies regularly audit, and state officials regularly investigate, the Company’s performance across all areas of its contractual obligations to the state to determine compliance and quality of services. Read more
The Company may be subject to, among other penalties, significant fines, sanctions, corrective actions, and enrollment freezes depending on the findings of these audits and reviews. The Company’s ongoing performance and compliance with program requirements can impact our ability to expand and retain Medicaid business. State Medicaid agencies are also increasingly using the audit process to challenge the legality of PBM practices, such as guaranteed effective rate reconciliations with retail pharmacies and transmission fees.
• The “Working Families Tax Cut Act,” formerly the “One Big Beautiful Bill Act,” of 2025 makes changes to Medicaid eligibility rules and financing which will lead to reduced eligibility for Medicaid beneficiaries, particularly expansion populations, and reduced state funding, which will impact Medicaid benefits and payment rates. Given these changes, states that have not already done so are unlikely to consider Medicaid expansion.
The use of AI and related technology may also increase exposure to reputational, cybersecurity, data privacy, legal, regulatory and operational risks as AI technology rapidly evolves along with public opinion concerning the use of AI and the associated legal and regulatory framework. These risks include, but are not limited to, heightened exposure to cybersecurity incidents or the misuse of data during the integration of AI models and large data sets; increased potential liability and costs associated with complying with rapidly emerging regulatory frameworks; costs and competitive disadvantages associated with the failure to properly integrate AI into existing operations; and reputational harm caused by actual or perceived failures in the performance of AI or AI-related technology.
No longer in the text (4)
• If our suppliers or service providers fail to meet their contractual obligations to us or to comply with applicable laws or regulations, we may be exposed to brand and reputational harm, litigation and/or regulatory action.
• We may experience increased medical and other benefit costs, litigation risk and customer and member dissatisfaction when providers that do not have contracts with us render services to our Health Care Benefits members.
While the public health emergency related to COVID-19 expired in May 2023, COVID-19 still exists and it may, like many other respiratory viruses, wax and wane depending on geography and seasonality. Read more
The future impact COVID-19 will have on the Company and its ability to accurately forecast health care and other benefit costs is uncertain, and will depend on geographies impacted, whether new variants emerge and their severity, the availability and costs of testing, vaccination and treatment, and legal and regulatory actions. COVID-19 may also impact provider behavior, utilization trends, membership, and overall economic conditions. These impacts could be adverse and material.
• The operating results and margins of our LTC business are further affected by the increased efforts of health care payors to negotiate reduced or capitated pricing arrangements and by the financial health of, and purchases and sales of, our LTC customers.
17 more paragraphs differ; the filings below have the full text.
Matched automatically, quoted as filed, and may include rewording of an existing risk. Compares Item 1A of the 10-K filed Feb 10, 2026 ↗ with the 10-K filed Feb 12, 2025 ↗.
25
What to watch going forwardSite analysis
- Medicare Advantage margins and star ratings.
- PBM reform.
- Health Care Delivery after the impairment.
- Litigation outcomes.
26
Source documentsShow
This page's financial figures come from the Form 10-Ks listed below. Check the original filings for full detail.
Last updated
Analysis last edited: November 6, 2026 · Financial data fetched: October 17, 2026 10:07 (SEC EDGAR) · Source 10-K filed: February 10, 2026
Built on10-K FY2025 · filed 2026-02-10
Next update expectedAfter FY2026’s 10-K is filed (roughly 60–90 days after fiscal year end (sooner for larger filers)), financials and analysis will be refreshed.
This page is this site’s own analysis based on public information, and does not represent CVS Health’s views. It is not a recommendation to buy or sell any security, and this site does not guarantee the accuracy of any figure or statement here. Always verify against the original source documents before making an investment decision.