CVS Q4 revenue beats analyst expectations on prescription volumes

Overview

• Health solutions company's Q4 revenue rose 8.2%, beating analyst expectations

• Adjusted EPS for Q4 beat analyst expectations

• Q4 operating income fell 10.8% due to goodwill impairment and litigation costs

Outlook

• CVS confirms 2026 GAAP diluted EPS guidance range of $5.94 to $6.14

• Company confirms 2026 adjusted EPS guidance range of $7.00 to $7.20

• CVS updates cash flow from operations guidance to at least $9.0 bln from $10.0 bln

Result Drivers

• PHARMACY & CONSUMER WELLNESS GROWTH - Revenue growth driven by increased prescription volume and Rite Aid prescription file acquisitions, despite reimbursement pressure

• HEALTH CARE BENEFITS CHALLENGES - Adjusted EPS decline due to changes in Medicare Part D seasonality and premium deficiency reserves

• HEALTH SERVICES IMPROVEMENTS - Revenue growth supported by improved purchasing economics, despite pharmacy client price improvements

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 22 "strong buy" or "buy", 7 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the healthcare facilities & services peer group is "buy"

• Wall Street's median 12-month price target for CVS Health Corp is $95.00, about 25.4% above its February 9 closing price of $75.77

• The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 11 three months ago

Press Release: ID:nPn38TjDWa

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