CVS Health Reports Q4 Beat but Maintains Full-Year Outlook
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 10 2026
0mins
Should l Buy CVS?
Source: seekingalpha
- Strong Earnings Performance: CVS Health's Q4 2025 revenue grew approximately 8% year-over-year to $105.7 billion, exceeding market expectations by $2.1 billion, although adjusted EPS fell about 8% to $1.09, still beating forecasts by $0.09, indicating robust overall business performance.
- Growth in Health Insurance Segment: Revenue from CVS's Health Care Benefits segment rose about 10% year-over-year to $36.3 billion, with a medical benefit ratio steady at 94.8%, reflecting improvements in government health plans and demonstrating the company's sustained competitiveness in the health insurance market.
- Pharmacy & Consumer Wellness Growth: This segment recorded $37.7 billion in revenue during the period, indicating approximately 12% year-over-year growth, with prescriptions filled increasing by 6.3% on a 30-day equivalent basis, showcasing strong consumer demand that further propelled overall revenue growth.
- Declining Profitability: Despite CVS's diluted EPS rising approximately 77% year-over-year to $2.30, primarily due to a $1.9 billion tax benefit, its gross margin fell by 50 basis points to 5.2%, indicating challenges in cost control, necessitating attention to the recovery of profitability in the future.
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Analyst Views on CVS
Wall Street analysts forecast CVS stock price to rise
17 Analyst Rating
16 Buy
1 Hold
0 Sell
Strong Buy
Current: 76.070
Low
91.00
Averages
96.71
High
105.00
Current: 76.070
Low
91.00
Averages
96.71
High
105.00
About CVS
CVS Health Corporation is a health solutions company. The Company's segments include Health Care Benefits, Health Services, Pharmacy & Consumer Wellness and Corporate/Other. Health Care Benefits segment offers a broad range of traditional, voluntary and consumer-directed health insurance products and related services, including medical, pharmacy, dental and behavioral health plans, PDPs and Medicaid health care management services. Health Services segment provides a full range of pharmacy benefit management (PBM) solutions through its CVS Caremark operations and delivers health care services in its medical clinics, virtually, and in the home. Pharmacy & Consumer Wellness segment dispenses prescriptions in its CVS Pharmacy retail locations and through its infusion operations, provides ancillary pharmacy services including pharmacy patient care programs, diagnostic testing and vaccination administration, and sells a wide assortment of health and wellness products and general merchandise.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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