10-QPeriod: Q1 FY2026

CVS HEALTH Corp Quarterly Report for Q1 Ended Mar 31, 2026

Filed May 6, 2026For Securities:CVS

Summary

CVS Health Corporation reported a strong first quarter for 2026, demonstrating significant revenue and net income growth compared to the prior year. Total revenues increased by 6.2% to $100.4 billion, driven by robust performance across all operating segments, particularly in Health Services and Pharmacy & Consumer Wellness, with notable contributions from pharmacy drug mix and brand inflation. Net income saw a substantial increase of 65.9% to $2.96 billion. This growth was significantly aided by the absence of large one-time charges incurred in the prior year, such as the legacy litigation charge and the loss on Accountable Care assets. The effective income tax rate also improved due to these factors. The company maintained a solid liquidity position with $9.5 billion in cash and cash equivalents, and continues to return value to shareholders through consistent dividend payments.

Financial Highlights

50 data points
Beta

Revenue

$100.43B

44.8% Gross Margin

Net Income

$2.94B

2.9% Net Margin

EPS (Diluted)

$2.30

Total Assets

$252.97B

Cash & Equivalents

$9.54B

Free Cash Flow

$3.40B

Financial Statements
Beta
Revenue$100.43B
Cost of Revenue$55.44B
Gross Profit$44.98B
Operating Expenses$95.75B
Operating Income$4.68B
Net Income$2.94B
EPS (Basic)$2.31
EPS (Diluted)$2.30
Shares Outstanding (Basic)1.27B
Shares Outstanding (Diluted)1.28B

Key Highlights

  • 1Total revenues grew 6.2% year-over-year to $100.4 billion, driven by broad segment performance.
  • 2Net income surged 65.9% to $2.96 billion, benefiting from the absence of prior-year charges.
  • 3Operating income increased by a significant 38.7% to $4.68 billion, reflecting improved segment performance and lower one-time expenses.
  • 4The Health Care Benefits segment saw strong growth in its Government business and improved Medical Benefit Ratio (MBR) to 84.6%.
  • 5Health Services segment revenue increased 11.0% driven by pharmacy drug mix and brand inflation.
  • 6Pharmacy & Consumer Wellness segment revenues remained stable, with positive same-store sales growth in both pharmacy and front store.
  • 7The company maintained a strong liquidity position with $9.5 billion in cash and cash equivalents as of March 31, 2026.

Frequently Asked Questions

CVS Health's total revenues increased by 6.2% to $100.4 billion, primarily driven by revenue growth across all operating segments. This was supported by pharmacy drug mix, brand inflation, and contributions from acquisitions, alongside increased volume in the Health Services segment.

Net income increased significantly by 65.9% to $2.96 billion. This substantial growth was largely due to the absence of significant one-time charges incurred in the prior year, such as a $387 million legacy litigation charge and a $247 million pre-tax loss on the wind down and sale of Accountable Care assets. Operating income also saw a strong increase of 38.7%.

CVS Health is involved in numerous ongoing legal and regulatory proceedings, including those related to PBM practices, controlled substances (opioids), prescription processing, and government program compliance. While the company has reached significant settlements for opioid claims, some litigation remains. The company accrues for probable losses that can be reasonably estimated, but the ultimate outcomes of many of these matters are uncertain and could materially affect financial results.

CVS Health maintained a strong liquidity position with $9.5 billion in cash and cash equivalents as of March 31, 2026. Net cash provided by operating activities was $4.25 billion. The company did not have any commercial paper outstanding and had access to significant revolving credit facilities. Dividends were maintained at $0.665 per share, and the company did not repurchase shares during the quarter.