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’s fiscal second quarter was defined by a near-doubling of operating income, as the Health Care Benefits segment’s government business delivered sharply lower medical costs and the absence of $833 million in prior-year legacy litigation charges lifted results. The medical benefit ratio in the insurance unit fell to 87.4% from 89.9% a year earlier, reflecting improved underwriting and the lapse of a premium deficiency reserve. While all segments contributed to revenue growth, the Health Services segment faced ongoing pressure from client price improvements, and overall margin expansion was partly aided by one-time items. For the remainder of the year, management flagged elevated healthcare utilization and regulatory uncertainty as key watchpoints.
Revenue
$106.1B
+7.26% YoY
EPS (Diluted)
$2.31
+188.75% YoY
Operating Income
$4.7B
+97.52% YoY
Source: SEC XBRL
Cvs Health (CVS) reported Q2 FY2026 revenue of $106.1B, up 7.3% year over year. Operating margin was 4.4%, up 2.0 points from 2.4% a year earlier. CVS's fiscal Q2 FY2026 corresponds to calendar Q2 2026.
Last 4 quarters: 4 beats
| Quarter | Actual EPS (USD) | Consensus (USD) | Result |
|---|---|---|---|
| Jun 2026This filing | 2.58 | 1.87 | Beat +38.0% |
| Mar 2026 | 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 $2.58 versus the $1.87 analyst consensus — a +38.0% beat for Jun 2026. Analyst consensus is quoted on the adjusted (non-GAAP) basis the street uses. GAAP diluted EPS for this quarter was $2.31.
3 reported segments · SEC XBRL
Segment revenue totals $105.44B, which is the $105.45B of consolidated revenue on the income statement.
Compiled by AI from 10-Q Item 2 of this filing
The current quarter's results did not include the $833 million in legacy litigation charges that were recorded in Q2 2025, significantly contributing to the 97.5% growth in operating income.
Source: 10-Q Item 2 MD&A
The MBR decreased to 87.4% from 89.9% primarily due to better performance in the Government business and the absence of a $471 million premium deficiency reserve recorded in the prior year.
Source: 10-Q Item 2 MD&A
The company's exit of the individual exchange business in 2026 led to a decline in commercial medical membership, partially offset by growth in the Government segment.
Source: 10-Q Item 2 MD&A
While adjusted operating income in Health Services grew 10.0%, it was partially offset by continued pharmacy client price improvements and increased pressure from pharmaceutical manufacturers.
Source: 10-Q Item 2 MD&A
Same-store sales increased 2.6% year-over-year, with pharmacy same-store sales up 2.9% and prescription volume (30-day equivalent) growing 7.0%.
Source: 10-Q Item 2 MD&A
Compiled by AI from this SEC filing · 0 high, 2 medium, 3 low
The debt-to-equity ratio of 2.18 indicates significant reliance on debt financing, which increases vulnerability to rising interest rates and could limit financial flexibility in a downturn.
Source: 10-Q Balance Sheet (XBRL)
A current ratio of 0.87 means short-term liabilities exceed current assets, potentially creating challenges in meeting near-term obligations without external financing.
Source: 10-Q Balance Sheet (XBRL)
Net margin of 2.8% and ROA of 1.2% leave limited room to absorb cost inflation, pricing pressure, or unexpected operating headwinds.
Source: 10-Q Income Statement (XBRL)
Despite strong operating cash flow, heavy financing outflows for debt repayment ($3.3 billion) and dividends ($1.7 billion) in the first half of 2026 could strain liquidity if operating performance weakens.
Source: 10-Q Cash Flow Statement (XBRL)
Cash and equivalents fell 3.9% year-over-year to $11.3 billion, reducing the company's buffer for strategic investments or unforeseen needs.
Source: 10-Q Balance Sheet (XBRL)
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue $B | 106.10 $B | 98.92 $B | +7.26% |
Cost of Revenue $B | 58.86 $B | 54.01 $B | +8.99% |
Operating Income $B | 4.70 $B | 2.38 $B | +97.52% |
Net Income $B | 2.98 $B | 1.02 $B | +191.77% |
EPS (Basic) $ | 2.33 $ | 0.81 $ | +187.65% |
EPS (Diluted) $ | 2.31 $ | 0.80 $ | +188.75% |
Answers draw on this SEC filing and the data on this page
Expected release date, analyst estimates & what to watch
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.
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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