Computed from published fixed rules, not a model's judgement — though one input, the count of high-severity risks, comes from the AI analysis below.
Not investment advice and not a price target: it scores the quarter's fundamentals, not the stock. Full methodology →
AI Takeaway
CVS Health delivered a strong Q1 2026 with revenue rising 6.2% YoY to $100.4B and net income surging 65.4% to $2.9B, driven by improved operating leverage and margin expansion.
Revenue
$100.43B
+6.17% YoY
EPS (Diluted)
$2.30
+63.12% YoY
Operating Income
$4.68B
+38.71% YoY
Source: SEC XBRL
Cvs Health (CVS) reported Q1 FY2026 revenue of $100.43B, up 6.2% year over year. Operating margin was 4.7%, up 1.1 points from 3.6% a year earlier. Operating cash flow was $4.25B, down 6.7% year over year. CVS's fiscal Q1 FY2026 corresponds to calendar Q1 2026.
Last 4 quarters: 4 beats
| Quarter | Actual EPS (USD) | Consensus (USD) | Result |
|---|---|---|---|
| Jun 2026 | 2.58 | 1.87 | Beat +38.0% |
| Mar 2026This filing | 2.57 | 2.22 | Beat +15.8% |
| Dec 2025 | 1.09 | 1.00 | Beat +8.8% |
| Sep 2025 | 1.60 | 1.38 | Beat +15.7% |
Adjusted (non-GAAP) EPS of $2.57 versus the $2.22 analyst consensus — a +15.8% beat for Mar 2026. Analyst consensus is quoted on the adjusted (non-GAAP) basis the street uses. GAAP diluted EPS for this quarter was $2.30.
Compiled by AI from this SEC filing
Total revenue grew 6.2% YoY to $100.4B in Q1 2026 (from $94.6B in Q1 2025), reflecting continued volume growth across CVS's diversified health services platform including pharmacy benefits, retail, and health care segments.
Source: 10-Q Financial Data, Income Statement
Operating income jumped 38.7% YoY to $4.68B from $3.37B, with operating margin expanding approximately 110 basis points to 4.66%, suggesting meaningful improvement in cost efficiency and business mix relative to the prior year period.
Source: 10-Q Financial Data, Income Statement
Net income increased 65.4% YoY to $2.94B, with diluted EPS rising 63.1% to $2.30 from $1.41, indicating that bottom-line profitability improved substantially beyond just top-line growth.
Source: 10-Q Financial Data, Income Statement
Cost of revenue grew 8.6% YoY to $55.4B, outpacing revenue growth of 6.2%, which implies some gross margin compression; however, operating income still expanded significantly, suggesting effective SG&A and overhead management.
Source: 10-Q Financial Data, Income Statement
Operating cash flow came in at $4.25B for Q1 2026, a modest 6.7% decline from $4.56B in Q1 2025, while the company continued to pay dividends of $847M, reflecting ongoing commitment to shareholder returns.
Source: 10-Q Financial Data, Cash Flow Statement
Compiled by AI from this SEC filing · 2 high, 2 medium, 1 low
CVS's current ratio stands at 0.87, meaning current liabilities of $86.4B exceed current assets of $74.8B. This below-1.0 ratio indicates that short-term obligations outpace liquid assets, which could create liquidity pressure if operating cash flows deteriorate or credit conditions tighten.
Source: 10-Q Financial Data, Balance Sheet
CVS carries a debt-to-equity ratio of 2.26, reflecting significant financial leverage largely stemming from its acquisitions of Aetna and Signify Health. Elevated leverage increases interest expense burden and limits financial flexibility, particularly in a higher-for-longer interest rate environment.
Source: 10-Q Financial Data, Balance Sheet & Key Ratios
Cost of revenue increased 8.6% YoY versus revenue growth of 6.2%, suggesting potential gross margin compression. If this trend persists, it could erode profitability improvements seen at the operating and net income level, particularly in the pharmacy benefits and retail segments.
Source: 10-Q Financial Data, Income Statement
Cash and equivalents fell 5.3% YoY to $9.54B from $10.08B, while operating cash flow also declined 6.7% YoY. A continued drawdown in cash reserves alongside high leverage could limit CVS's ability to invest in growth or manage unexpected financial shocks.
Source: 10-Q Financial Data, Balance Sheet & Cash Flow Statement
CVS's ROA of 1.16% reflects the capital-intensive and low-margin nature of its diversified health services business. With $253B in total assets, generating sufficient returns to justify the asset base remains a challenge, especially as integration costs from prior acquisitions continue to weigh on profitability.
Source: 10-Q Financial Data, Key Ratios
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue $B | 100.43 $B | 94.59 $B | +6.17% |
Cost of Revenue $B | 55.44 $B | 51.06 $B | +8.59% |
Operating Income $B | 4.68 $B | 3.37 $B | +38.71% |
Net Income $B | 2.94 $B | 1.78 $B | +65.43% |
EPS (Basic) $ | 2.31 $ | 1.41 $ | +63.83% |
EPS (Diluted) $ | 2.30 $ | 1.41 $ | +63.12% |
Answers draw on this SEC filing and the data on this page
CVS Health's Q2 FY2026 operating income surged 97.5% driven by government insurance gains and lapping prior-year litigation costs.
CVS Health's FY2025 revenue grew 7.8% to $402.1B, but net income collapsed 61.7% to $1.77B as operating margins were severely compressed, reflecting significant cost pressures and structural challenges across its business segments.
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