CVS Health Lifts FY26 Outlook After Growth In Q2; Stock Gains

(RTTNews) - Shares of CVS Health Corp. were gaining around 5 percent in the pre-market activity on the NYSE on Wednesday, after the firm lifted fiscal 2026 profit and revenue outlook, after reporting significant growth in its second quarter.

According to the health solutions major, the outlook revision reflects 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.

Separately, CVS Health announced a revamp of its weight management program, and collaboration with Lilly to help eligible Zepbound and Foundayo patients more easily access transparent pricing, inclusive of reimbursed and self-pay options, through the CVS Health app.

Looking ahead for fiscal 2026, the company now expects earnings per share to be $6.24 to $6.44, higher than previous estimate of $6.24 to $6.44.

Adjusted earnings per share are now expected between $7.90 to $8.10, compared to previous range of $7.30 and $7.50.

Total revenues for year are now expected to be at least $414.0 billion, compared to previous projection of at least $405.0 billion.

In fiscal 2025, earnings per share were $1.39 and adjusted earnings per share were $6.75 on revenues of $402.07 billion.

Cash flow from operations guidance has been lifted to at least $11.5 billion from at least $9.5 billion

In the second quarter, the company's net earnings totaled $2.979 billion, or $2.31 per share, higher than compares with $1.021 billion, or $0.80 per share, last year.

Adjusted earnings were $3.324 billion or $2.58 per share for the period, compared to $1.81 per share a year ago.

Adjusted operating income climbed 35.4 percent to $5.157 billion from $3.808 billion last year, primarily due to improved income in the Health Care Benefits segment, reflecting continued execution on the Health Care Benefits segment margin recovery plan.

The company's revenue for the period rose 7.3 percent to $106.096 billion from $98.915 billion last year, driven by revenue growth across all operating segments.

Health Care Benefits segment's revenues increased 3.5 percent year-over-year to $37.538 billion, primarily on an increase in the Government business, despite its exit of the individual exchange business in 2026.

Health Services segment revenues increased 11.5 percent $51.795 billion, primarily driven by pharmacy drug mix and brand inflation.

Pharmacy & Consumer Wellness segment revenues increased slightly.

In pre-market activity, CVS shares were gaining around 5.06 percent to trade at $109.70, after closing Tuesday's regular trading 0.9 percent lower.

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