CVS Health Q4 Beats Street, Confirms FY26 Earnings View; Stock Down

(RTTNews) - CVS Health Corp., while reporting higher profit and revenues in its fourth quarter above market estimates, on Tuesday confirmed its earnings outlook for fiscal 2026.

Further, the company trimmed guidance foer cash flow from operations to at least $9.0 billion from at least $10.0 billion expected earlier.

In pre-market activity, the shares were losing around 3.9 percent, trading at $72.85.

David Joyner, CVS Health President and CEO, stated, "Our fourth quarter and full-year results demonstrate the progress we are making in transforming the health care experience with our unique collection of businesses. From lowering drug prices, to improving navigation of health care, to being the front door of care across our country, we are well positioned to achieve our ambition to be the most trusted health care company in America."

Looking ahead for fiscal 2026, the company continues to expect earnings per share in the range of $5.94 to $6.14, and adjusted earnings per share in the range of $7.00 to $7.20.

The Wall Street analysts on average expect the company to report earnings of $7.17 per share. Analysts' estimates typically exclude special items.

The Company in early December had issued guidance for total fiscal 2026 revenues of at least $400.0 billion, operating income of $13.26 billion to $13.60 billion, and adjusted operating income of $15.07 billion to $15.41 billion.

The Street expects revenues of $409.2 for the new year.

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

CVS Health also said in December that it expects to achieve a mid-teens adjusted EPS CAGR through 2028.

In the fourth quarter, CVS Health's net income attributable totaled $2.943 billion or $2.30 per share, higher than $1.644 billion or $1.30 per share last year.

Adjusted earnings were $1.387 billion or $1.09 per share for the period, compared to $1.19 per share a year ago.

The Street expected earnings of $1.00 per share for the quarter.

Adjusted operating income for the quarter declined to $2.60 billion from last year's $2.73 billion, primarily reflecting wider adjusted operating loss income in the Health Care Benefits segment. Changes in the seasonality of the Medicare Part D program due to the impact of the Inflation Reduction Act impacted the segment results.

The company's revenue for the period rose 8.2 percent to $105.69 billion from $97.71 billion last year, driven by growth across all operating segments. Analysts estimated revenues of $103.57 billion for the quarter.

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