Under CEO David Joyner, who stepped into the role in late 2024, the company is executing an aggressive turnaround plan. Buoyed by a rebound in its Aetna business and strong growth in its Caremark PBM segment, CVS is forecasting double-digit earnings growth in 2026. The company leverages its unique integrated model combining retail pharmacy, PBM services, and health insurance to capture synergies and reduce fragmentation in healthcare delivery.
Cyborg Score Rationale
CVS reported fourth-quarter earnings and revenue that beat estimates and reaffirmed 2026 profit guidance that impressed investors, signaling steady progress in the company's turnaround plan. However, the company faces headwinds: CVS announced it would stop offering Affordable Care Act plans, saying the business was unsustainable, and plans to close 16 Oak Street Health clinics amid rising cost pressures.
Top Insights
CVS is maintaining its 2026 revenue guidance of at least $400 billion with strong pharmacy volume growth from Rite Aid acquisitions
Aetna healthcare benefits segment reported 9.1% revenue jump in Q3, showing renewed vigor after a challenging 2024
Trump administration's smaller-than-expected Medicare Advantage payment rate increase for 2027 has pressured CVS shares alongside UnitedHealth and Humana
CVS expects mid-teens adjusted EPS CAGR through 2028 and is launching a new open consumer engagement platform integrating experiences across its entities
Named Competitors
UnitedHealth Group — Largest integrated healthcare company with insurance and health services
Walgreens Boots Alliance — Second-largest pharmacy chain competitor with retail and health services
Express Scripts — Major PBM and specialty pharmacy competitor
Humana — Health insurance competitor with Medicare Advantage focus
Recent Developments
(February 2026) CVS reported Q4 2025 earnings beating estimates with adjusted EPS of $1.09, maintained 2026 guidance of $7.00-$7.20 per share
(February 2026) Company reaffirmed $400B minimum 2026 revenue guidance while noting $20B in headwinds including ACA exchange exit
(December 2025) CVS announced mid-teens EPS CAGR target through 2028 and launch of Engagement as a Service technology platform
(October 2025) Announced closure of 16 underperforming Oak Street Health clinics with $5.7B goodwill impairment charge
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