CVS Health beats Q4 expectations, cash flow guidance lowered

Investing.com -- CVS Health Corporation (NYSE: CVS) reported fourth-quarter results that exceeded analyst expectations, but shares fell 2.5% premarket.

The healthcare giant posted adjusted earnings per share of $1.09 for the fourth quarter, beating analyst estimates of $1.00. Revenue climbed to $105.7 billion, an 8.2% increase YoY and above the consensus estimate of $103.63 billion. Despite these positive results, the company reduced its 2026 cash flow from operations guidance to at least $9.0 billion from the previous target of at least $10.0 billion.

CVS maintained its full-year 2026 adjusted EPS guidance range of $7.00 to $7.20, which aligns with analyst expectations of $7.17.

"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," said David Joyner, CVS Health President and CEO. "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."

For the full year 2025, CVS reported record revenues of $402.1 billion, up 7.8% YoY, with adjusted EPS of $6.75, representing a 24.5% increase from the previous year.

The Pharmacy & Consumer Wellness segment showed strong performance with a 12.4% revenue increase in the fourth quarter, driven by higher prescription volume and favorable pharmacy drug mix. Same-store prescription volume increased 9.7% on a 30-day equivalent basis.

The Health Services segment, which includes the company's PBM business, saw revenues increase 9.0% in the fourth quarter, while the Health Care Benefits segment reported a 10.1% revenue increase but faced an adjusted operating loss due to changes in Medicare Part D seasonality from the Inflation Reduction Act.

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