CVS Health raises 2026 profit forecast on stronger pharmacy mix and Aetna margins

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CVS Health raises 2026 profit forecast

Highlights

CVS Health raises its 2026 adjusted earnings per share guidance to $7.90–$8.10 from $7.30–$7.50, above LSEG analyst consensus of $7.45.
Second-quarter adjusted profit hits $2.58 per share on $106.1 billion revenue, both surpassing Street estimates on stronger pharmacy mix and Aetna margin improvement.
Aetna's medical loss ratio drops to 87.4% from 89.9%, aided by high Star ratings and Medicare bonus payments, supporting ongoing margin recovery.

Quarterly results and upgraded guidance

As reported by Reuters, CVS says it now expects 2026 adjusted earnings per share of $7.90 to $8.10, up from its earlier range of $7.30 to $7.50. Analysts expect full-year earnings per share of $7.45, according to LSEG data.

Adjusted second-quarter profit comes in at $2.58 per share, ahead of Wall Street estimates of $1.85. Quarterly revenue rises to $106.1 billion from $98.9 billion, also above expectations of $100.11 billion.

The company says the stronger quarter is helped by a more profitable mix of drugs in its pharmacy business and bonus payments tied to high Star ratings in its government-backed health plans. CVS adds that it remains cautious despite the higher outlook because elevated medical cost trends persist and the broader macroeconomic environment could become more difficult.

Insurance recovery and competitive sector pressure

Aetna reports a quarterly medical loss ratio of 87.4%, down from 89.9% a year earlier and below estimates of 90.03%. A CVS spokesperson says the insurer continues to make progress in a multi-year margin recovery effort, supported by strong Star ratings that affect member outcomes, experience and Medicare bonus payments.

CVS says operating profit at its health services unit, which includes clinics, rises 10% to $1.73 billion from $1.58 billion, helped by changes in how Oak Street primary care operations are run. The company previously says it is slowing Oak Street expansion and plans to close 16 underperforming locations.

MinuteClinic also says it will offer $29 appointments for adults seeking weight-loss drug visits for treatments including Novo Nordisk's Wegovy and Eli Lilly's Foundayo and Zepbound. CVS's results broadly track those of UnitedHealth, which raised its own forecast in July as medical cost controls improved, while insurers across the sector continue to respond to high care utilization by raising prices, cutting benefits and exiting less profitable plans.

Our earlier coverage of HSBC’s second-quarter 2026 results highlighted a sharp rise in profit, supported by balance sheet growth and strong performance in its core Asian and wealth management franchises. We also noted HSBC’s upgraded 2026 banking net interest income guidance, alongside solid funding strength and a stable capital position.

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