CVS earnings, revenue top Street amid improvements in Aetna insurance business
CVS Health Corp. reported a strong first quarter, with better-than-expected growth across all three of its business segments.
The retail pharmacy and health care giant also raised its its 2026 guidance as its insurance unit (Aetna), which has been struggling amid higher medical costs, showed improvement.
“Our performance reflects a substantial improvement from the prior-year quarter as we continue to execute on our margin recovery plans at Aetna,” CFO Brian Newman said on the company’s earnings call.
CVS posted net income of $2.94 billion, or $2.30 per share, for the quarter ended March 31, compared with net income of $1.78 billion, or $1.41 per share, for the year-ago period. Adjusted earnings of $2.57 per share easily topped anlysts estimates of $2.20 per share.
Total revenues increased 6.2% to $100.43 billion. Analysts had expected revenue of $95.09 billion.
Revenue in CVS’ health care benefits segment (insurance unit) rose 3% $35.971 billion. The unit’s adjusted operating income jumped nearly 53%, driven by improved performance in government plans and the end of a $448 million premium deficiency reserve recorded last year.
The company’s pharmacy and consumer wellness division reported $31.989 billion in sales, compared to $31.912 in the year-ago quarter.
Revenue in the health services segment rose 11% to $48.237 billion. The division includes pharmacy benefit manager Caremark.
During the quarter, the company opened the first of nearly 20 pharmacy-only, “apothecary-style” CVS Pharmacy locations it plans to open this year. Located in Chicago’s West End neighborhood, the 3,000-sq.-ft. store features a full-service pharmacy and a customized selection of over-the-counter products.
“CVS Health continues to provide what people want most from health care: a connected, convenient, cost-effective engagement experience across our unique collection of businesses, said David Joyner, CVS Health chairman and CEO. “Our positive performance is driven by strong execution across our enterprise. We will continue to build momentum through delivering on our strategy and a steadfast focus on our purpose — to simplify health care one person, one family and one community at a time."
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CVS now expects full-year profit of between $7.30 and $7.50 per share, up from its previous outlook of $7 to $7.20 per share. It expects revenue of at least $405 billion, up from its prior estimate of at least $400 billion.
As of March 31, 2026, the company had approximately 9,000 retail pharmacy locations, more than 1,000 walk-in and primary care medical clinics and a leading pharmacy benefits manager with approximately 88 million plan members
