CVS raises 2026 outlook as Aetna insurance unit shows recovery

Aug 5, 2026

CVS Health raised its 2026 profit and revenue guidance after reporting strong second-quarter earnings that surpassed expectations. The positive results were driven by a recovery in its Aetna insurance unit, which saw lower-than-expected medical costs. The company also announced a new partnership with Eli Lilly to offer weight loss drugs Zepbound and Foundayo through its app.

Second-quarter earnings results

▪The company's second-quarter revenue was $106.10 billion, surpassing the anticipated $100.11 billion.
▪CVS Health's net income for the second quarter was $2.98 billion, compared to $1.02 billion in the same period a year ago.
▪CVS Health Corp. reported second-quarter adjusted earnings of $2.58 per share, exceeding Wall Street expectations of $1.85.

2026 financial guidance

▪The company increased its 2026 revenue forecast to at least $414 billion, from a prior outlook of at least $405 billion.
▪Despite the positive results, CVS is maintaining a "cautious view" for the rest of 2026 due to high medical costs and economic challenges.
▪CVS raised its full-year 2026 adjusted profit guidance to a range of $7.90 to $8.10 per share, up from a previous range of $7.30 to $7.50.

Aetna insurance recovery

▪The improved financial outlook was driven by better-than-expected medical costs in the company’s Aetna insurance business.
▪Aetna's medical benefit ratio, a measure of expenses to premiums, decreased to 87.4% from 89.9% in the prior year, indicating higher profitability.
▪For the last two years, health insurers have been challenged by high medical costs from Medicare Advantage patients seeking procedures delayed during the pandemic.

Eli Lilly weight loss collaboration

▪CVS announced a new collaboration with Eli Lilly to make the obesity drugs Zepbound and Foundayo accessible via the CVS Health app.
▪The Eli Lilly drug offering will be available by the early fourth quarter to both insured and out-of-pocket patients.

Pharmacy segment performance

▪The pharmacy and consumer wellness unit includes over 9,000 retail pharmacies and provides services like vaccinations and diagnostic testing.
▪The pharmacy and consumer wellness division recorded $33.82 billion in sales for the second quarter, slightly higher than the year-ago period.

Health services segment growth

▪The health services segment generated $51.8 billion in revenue, an 11.5% increase from the prior year.
▪The health services segment includes the pharmacy benefits manager Caremark, which negotiates drug discounts for insurance plans.