CVS Health Corp

XMUN:CVS

Beat and raise: CVS said each operating segment beat expectations in Q2, with adjusted operating income of $5.2 billion and adjusted EPS of $2.58, and it raised full-year 2026 EPS guidance by $0.60 to $7.90 to $8.10.

Guidance lifted: The company also raised full-year cash flow from operations to at least $11.5 billion, up $2 billion from prior guidance, and now expects revenue of at least $414 billion.

Aetna improved: Health Care Benefits delivered stronger-than-expected results, with Medicare ahead of plan and overall margin recovery continuing as medical cost management and pricing discipline showed through.

PBM pressure flagged: Management said 340B pressure will remain a headwind into 2027, and it also expects Caremark membership declines next year as it renews business more cautiously.

Retail momentum: CVS Pharmacy and PCW continued to show strong momentum, helped by prescription growth, Rite Aid-related volume, and improving service levels, while management said its cost-based pricing model is helping stabilize margins.

AI and GLP-1s: Management leaned heavily on technology and AI as both a cost saver and growth driver, and highlighted GLP-1 access as a consumer opportunity across funded, cash-pay, pharmacy, and clinic channels.