CVS Health Corp Overview
Employee trend (as reported / estimated)
The Company has reported "approximately 300,000" or "more than 300,000" colleagues for each year in the table, so the disclosed figure is not sensitive enough to reveal the underlying trend. Third-party workforce analytics (Revelio Labs, March 2026) estimate 300,359 employees, down 0.8% year over year and down approximately 4.0% versus 2023, with roughly 93.3% of headcount in the United States, 1.4% in India and 0.5% in Canada. That estimate is directionally consistent with the enterprise restructuring, store-closure and Aetna-related reductions described in Section 14, but it is not a Company-reported figure.
Positioning statement (analyst characterisation, ~150 words). CVS Health is the only US healthcare company that simultaneously owns the insurance risk, the pharmacy benefit, the retail dispensing footprint and a primary-care delivery arm at national scale. Its structural claim is that owning all four rungs of the pharmaceutical and benefit value chain lets it capture margin that competitors must share, and lets it steer patients — 85% of Americans live within ten miles of a CVS Pharmacy. In practice the Company spent 2023 through 2025 discovering that vertical integration also concentrates risk: Medicare Advantage cost trend, Part D redesign, PBM regulatory scrutiny and a failed clinic-expansion thesis all landed on the same balance sheet at once. FY2025 revenue reached a record $402.1 billion while GAAP net income fell to $1.8 billion after a $5.7 billion goodwill impairment. The 2026 story is margin repair, not growth: management is guiding to at least $414 billion of revenue and $7.90–$8.10 of adjusted EPS, with revenue essentially flat and all the earnings improvement coming from Aetna's underwriting recovery.
2.1 The Company's own description
The FY2025 Form 10-K opens with the Company's self-characterisation: CVS Health is a leading health solutions company building a world of health around every consumer it serves and connecting care so that it works for people wherever they are. As of 31 December 2025 it operated approximately 9,000 retail locations, more than 1,000 walk-in and primary care medical clinics, and a pharmacy benefits manager with approximately 87 million plan members and expanding specialty pharmacy solutions. It serves an estimated more than 37 million people through traditional, voluntary and consumer-directed health insurance products and related services, including expanding Medicare Advantage offerings and a leading standalone Medicare Part D prescription drug plan. The Company states it is creating new sources of value through an integrated model that allows expansion into personalised, technology-driven care delivery and health services.
The stated ambition, adopted in late 2025 and reproduced in the 2026 proxy statement, is to be America's most trusted health care company, with a purpose of simplifying health care one person, one family and one community at a time, and four stated values: we care; we innovate with purpose; we are accountable; we prioritise safety and quality.
2.2 Independent characterisation
CVS Health is best understood as three distinct P&Ls bolted onto a shared consumer footprint, plus a fourth structurally loss-making corporate segment.
The insurance business (Aetna) is a conventional managed-care underwriter. It earns a premium spread — the difference between the premium received and the medical costs incurred — and its economics are governed by the medical benefit ratio (MBR). It sells to employers, to individuals via Medicare, and to state Medicaid agencies. It is the most volatile earnings stream in the enterprise and the one that broke in 2024: FY2024 segment adjusted operating income collapsed to $307 million on $130.7 billion of revenue. FY2025 recovered to $2.9 billion, and H1 2026 alone delivered $5.5 billion.
The pharmacy benefit business (CVS Caremark) is a spread-and-fee intermediary. It processes claims, negotiates rebates with manufacturers through the Zinc group purchasing organisation, manages formularies, and operates mail and specialty pharmacies. Its revenue is enormous and its margin thin: FY2025 Health Services gross margin was 5.2% and adjusted operating margin 3.8%. The business model has been under sustained regulatory attack; the pricing architecture is migrating from rebate-driven spread toward transparent cost-plus constructs (CVS CostVantage, CVS CaremarkTrueCost) partly by choice and partly under duress.
The retail pharmacy business (CVS Pharmacy) is a dispensing and convenience-retail hybrid. Pharmacy was 82.9% of segment revenue in FY2025, up from 78.9% in FY2023, meaning the front store is shrinking as a share of the mix. Gross margin here is the highest of the three at 18.5% for FY2025, but reimbursement pressure is relentless and the Company completed a transition of its commercial, third-party discount, Medicare and Medicaid books to cost-based reimbursement during 2025.
Health care delivery — Oak Street Health, Signify Health, MinuteClinic — sits inside the Health Services segment and is the piece that has not worked. The $5.7 billion goodwill impairment recorded in FY2025 was taken against the Health Care Delivery reporting unit, and the Company recorded a further $83 million charge for the planned closure of certain Oak Street Health clinics in 2026. Management's Investor Day framing is telling: the target for this business is "driving towards breakeven with a path to sustained profitability" — an admission that the 2023 acquisitions have not yet earned their cost of capital.
2.3 Revenue model composition
CVS does not sell software subscriptions or licence intellectual property at scale. Its revenue is essentially three buckets, disclosed on the face of the income statement:
Source: Q4/FY2025 earnings release, Exhibit 99.1, 10 February 2026.
Products — overwhelmingly prescription drugs — were 62.2% of FY2025 revenue. Premiums were 33.5%. Services, which includes PBM administrative fees, Signify Health evaluations and Aetna ASC fees, were only 3.8% and are declining in absolute terms (down 6.6% in FY2025), a direct consequence of PBM client price improvements and the exit of the Accountable Care businesses.
2.4 Value chain position and customer types
CVS occupies the intermediary and last-mile positions in the US pharmaceutical value chain. It does not manufacture drugs (with the narrow exception of Cordavis, which co-produces and commercialises biosimilars). It does not distribute at wholesale — that is McKesson, Cencora and Cardinal Health, with whom CVS partners through the 50/50 Red Oak Sourcing generic sourcing joint venture with Cardinal Health.
Customer types by segment:
Concentration: Health Care Benefits revenue from the federal government was approximately 20% of consolidated total revenues in each of 2023, 2024 and 2025. CMS contracts for Medicare-eligible individuals represented approximately 79% of federal-government revenue in 2025, up sharply from 74% in 2024 and 73% in 2023 — a meaningful increase in single-counterparty dependency. No single Pharmacy & Consumer Wellness payor accounted for 10% or more of consolidated revenue in any of 2023–2025.
Strategy
10.1 Stated strategy — verbatim themes from the FY2025 Form 10-K
The Company states its ambition is "to be America's most trusted health care company" and its purpose is "to simplify health care one person, one family and one community at a time." Its strategy is described as "focused on simplifying health care experiences, improving engagement, lowering costs and delivering better health outcomes." It expects to create sustainable shareholder value by delivering "best-in-class execution, transforming consumer experiences, being the partner of choice and harnessing enterprise capabilities, enabled by innovation and capital stewardship."
The 2025 Investor Day framed the same four pillars: deliver best-in-class execution; transform consumer experiences; be the partner of choice; harness unique enterprise capabilities.
Joyner's framing at Investor Day: "In my nearly 40 years at the Company, I have seen our businesses and our industry find ways forward, always with consumer needs first. Our obligation is to ensure that CVS Health is best positioned to do the most good for the most people for the next 40 years."
10.2 Business-unit strategic mandates (Investor Day, 9 December 2025)
The asymmetry is instructive. Only Aetna is asked for growth. Caremark is asked to defend share. Pharmacy is asked to sustain, not grow. Health Care Delivery is asked to stop losing money. This is a repair plan, not an expansion plan.
10.3 Financial targets and guidance
Medium-term target: a mid-teens adjusted EPS compound annual growth rate through 2028, committed at the December 2025 Investor Day. Measured from the FY2025 base of $6.75, a 15% CAGR implies roughly $10.3 billion of adjusted income and adjusted EPS near $10.30 by 2028. The current 2026 guidance midpoint of $8.00 represents 18.5% growth — ahead of the mid-teens trajectory in year one.
At Q1 2026 management guided Health Care Benefits full-year adjusted operating income to approximately $4.00–$4.34 billion, an increase of $420 million versus prior guidance, reflecting favourable prior-year development.
Caveat that management itself flagged. Each 2026 guidance raise has been accompanied by the same sentence: the Company is "maintaining a cautious view for the remainder of the year in light of continued elevated cost trends and the potential for macro headwinds." And on the Q2 2026 call, commentary about expected Caremark membership declines in 2027 drove a roughly 9% single-day share price decline despite a large beat and raise. The market is pricing the 2027 problem, not the 2026 result.
10.4 Strategic initiatives announced in the last 24 months
10.5 Sustainability and ESG commitments
Covered in detail at Section 20. In summary: SBTi-validated net zero across the value chain by 2050 (direct operations by 2048); 47% absolute reduction in Scope 1, 2 and Scope 3 purchased goods and services emissions by 2030 from a 2019 base; 50% renewable electricity by 2040; Healthy 2030 framework organised around Healthy People, Healthy Business, Healthy Community and Healthy Planet.
Products & Services
5.1 Health Care Benefits segment (Aetna)
Quality accreditation: Aetna Life Insurance Company holds nationwide NCQA PPO Health Plan accreditation; all eligible Commercial HMO and ALIC PPO members were in NCQA-accredited plans at 31 December 2025; the Company holds NCQA Credentials Verification Organization certification for all options and URAC CVO accreditation. More than 81% of Medicare Advantage members were in plans rated at least 4.0 stars for 2026, and more than 63% in 4.5-star plans — down from 88% at 4.0+ stars for 2025, a material deterioration that will affect 2027 bonus payments.
5.2 Health Services segment (CVS Caremark and health care delivery)
Pharmacy benefit management
Health care delivery
5.3 Pharmacy & Consumer Wellness segment (CVS Pharmacy)
5.4 Cross-enterprise
Product Portfolio
| Offering | Description | Target customer | Scale / scope (FY2025) | Pricing model |
|---|---|---|---|---|
Commercial Medical — POS, PPO, HMO, Indemnity | Full-spectrum employer medical plans on Insured and ASC bases | Large multi-site national, mid-sized and small employers; individuals; expatriates | 18.8 million Commercial members (3.4m Insured, 15.4m ASC) at 31 Dec 2025 | Fixed premium set in advance for Insured; fixed annual fee for ASC |
Health Savings Accounts and consumer-directed health plans | POS/PPO with deductible plus accumulating benefit account funded by sponsor and/or member | Employers seeking cost-shifting designs | n.d. | Premium plus account contributions |
Medical stop-loss insurance | Assumes risk for large individual claims and/or aggregate loss above a pre-set annual threshold | Self-insured employers | n.d. | Attachment-point priced premium |
Aetna Dental | Dental plans complementing medical | Employers, individuals | n.d. | Premium |
Aetna Vision | Vision products | Employers, individuals | n.d. | Premium |
Behavioural health and employee assistance programmes | Behavioural products and EAP | Employers | n.d. | Premium / per-employee fee |
Aetna Medicare Advantage (HMO and PPO) | Enhanced-benefit Medicare replacement plans under annual CMS contracts; national PPO available to qualifying employer groups | Medicare-eligible individuals and retiree groups | 4.27 million members; offered in 44 states and Washington DC | CMS capitation adjusted for demographics, risk score and star rating; supplemental member premium in some plans |
Aetna Medicare Supplement | Coverage for deductibles and coinsurance not covered by Original Medicare | Medicare beneficiaries | 1.20 million members; offered in 49 states and DC | State-regulated premium |
SilverScript / Aetna Medicare Part D PDP | National standalone prescription drug plan | All Medicare-eligible individuals | 4.04 million members at 31 Dec 2025 (down from 4.88m); offered in all 50 states and DC | CMS payment plus member premium; risk-sharing corridors with CMS; participating in the CMS PDP premium stabilisation demonstration in 2025 and 2026 |
Medicaid and CHIP managed care | Health care management for Medicaid and CHIP eligibles under multi-year state contracts | State agencies | 2.33 million members; offered on Insured or ASC basis in 15 states | Fixed monthly per-member rate set by each state; actuarially sound requirement |
Dual Eligible Special Needs Plans (Duals) | Coordinated coverage for beneficiaries eligible for both Medicare and Medicaid | Dual-eligible individuals | n.d. | Rate set by CMS in partnership with the state |
Individual public exchange plans | ACA marketplace Insured plans sold direct to consumers | Individuals | Discontinued — the Company exited all states in which Aetna operated on the Public Exchanges effective January 2026 | n/a |
Federal Employees Health Benefits / FEDVIP | HMO and consumer-directed medical and dental plans for federal employees | US federal government | n.d. | Premium subject to federal audit and retroactive adjustment |
Aetna Claims Assist Manager (CAM), 2nd generation | AI-powered agentic claims advisor platform; reduces processing time by over 20% for complex claims requiring manual review | Providers and internal claims operations | Launched Q2 2026 | Internal capability; no direct pricing |
Bundled prior authorisation | Combines multiple prior authorisations for a condition pathway (e.g. IVF) into a single authorisation covering both medical care and required drugs | Providers and members | Introduced 2025; expanded 2026 | Internal capability |
Provider network | Contracted physicians, hospitals, laboratory, imaging, urgent care and freestanding facilities | n/a | Approximately 2.0 million participating providers at 31 Dec 2025 | Negotiated fee schedules and risk-sharing arrangements |
| Offering | Description | Scale / detail |
|---|---|---|
Plan design offerings and administration | Benefit design consultancy, eligibility, claims adjudication, performance reviews (annual, quarterly, sometimes monthly) | Approximately 87–88 million plan members |
Formulary management | Template formularies curated by the CVS Caremark National Pharmacy and Therapeutics Committee — an independent panel of physicians, pharmacists and medical experts | Biosimilar adoption delivered more than $1.5 billion of client savings (2025 proxy disclosure) |
Retail pharmacy network management | National contracted network | Approximately 63,000 retail pharmacies: approximately 34,500 chain (including CVS locations) and approximately 28,500 independent, across the US, Puerto Rico, DC, Guam and the US Virgin Islands |
Maintenance Choice | Lets eligible members fill maintenance prescriptions by mail or at a CVS retail store at the same price as mail order | Reported within pharmacy network revenue |
Specialty Connect | Specialty prescriptions picked up at retail but adjudicated as specialty | Reported within mail and specialty revenue |
Specialty Expedite | Interconnected onboarding solution for specialty medications | Digital workflow platform |
Mail order and specialty mail order pharmacies | Maintenance medication fulfilment and advanced therapies for chronic/genetic conditions | URAC Mail Service and Specialty Pharmacy accredited; substantially all specialty mail pharmacies also accredited by The Joint Commission and ACHC, including Pharmacy Compounding Accreditation Board certification and a distinction in Rare Diseases and Orphan Drugs |
Retail specialty pharmacy stores | Physical specialty dispensing locations | Reported in Pharmacy & Consumer Wellness fulfilment |
Clinical services — utilisation management, medication management, quality assurance, adherence and counselling | Programmes to reduce inappropriate utilisation and improve adherence | NCQA and URAC accredited UM programme |
Pharmacy Advisor and Drug Savings Review | Digital, telephonic, in-person and provider-facing outreach for chronic-disease members | Core medication support products |
CVS Weight Management | Optimises GLP-1 utilisation with label-recommended lifestyle support and coaching; addressing new indications such as cardiovascular disease | Extended in 2026 to new indications |
NovoLogix | Online preauthorisation tool identifying cost-saving opportunities for specialty drugs billed under the medical benefit | Medical benefit management |
Zinc Health Services | Group purchasing organisation negotiating pharmaceutical pricing and rebates on behalf of participants | Subject to the July 2026 FTC consent order requirements |
Cordavis | Wholly-owned subsidiary that works directly with manufacturers to commercialise and/or co-produce biosimilars | Launched 2023 |
CVS CostVantage / CVS CaremarkTrueCost | Cost-plus retail reimbursement model and transparent PBM pricing model | Announced December 2023; retail cost-based transition across Commercial, Third-Party Discount, Medicare and Medicaid completed in 2025 |
Health Engagement Engine | Proprietary clinical algorithm layer converting pharmacy data into interventions at points of care | Cloud-native; deployed across retail, mail, specialty and call centres |
| Offering | Description | Scale (FY2025) |
|---|---|---|
Oak Street Health | Retail-format community-based value-based primary care centres for Medicare-eligible patients; full financial risk under capitated payor contracts | 246 centres across 27 states; care for approximately 500,000 patients; strategic value-based relationships with over 25 payors including each of the top 5 national payors by Medicare Advantage patients; certain clinic closures planned for 2026 |
Canopy | Custom-built proprietary clinical and operational workflow platform underpinning the value-based care model | Enterprise platform |
Signify Health | Mobile network of credentialed providers conducting in-home health evaluations and select diagnostic services, virtually or at provider facilities | More than 3.5 million in-home evaluations in 2025; contracts with 46 health plans including 24 of the 50 largest Medicare Advantage plans; Medicare Advantage plans are approximately 85% of volume; supported more than 500,000 reconnections to care in 2025 |
MinuteClinic | Nurse practitioner and physician assistant staffed retail clinics, plus virtual care | More than 800 locations; virtual care available in nearly all states |
MinuteClinic virtual weight-loss visit | 24/7 online clinician consultation that can initiate GLP-1 therapy where clinically appropriate, with follow-ups for dose optimisation, adverse-effect support and monitoring | Repriced to $29 with no membership or recurring fee, announced 5 August 2026 |
ACO REACH and Medicare Shared Savings Program enablement | Provider enablement under CMS programmes | Discontinued — MSSP sold March 2025; ACO REACH wound down; $288 million aggregate pre-tax loss |
| Offering | Description | Scale / detail (FY2025) |
|---|---|---|
CVS Pharmacy retail dispensing | Prescription dispensing across the national store estate, including pharmacies located inside Target stores | Approximately 9,000 retail locations; 1.8 billion prescriptions filled on a 30-day equivalent basis; approximately 28.5% of all US retail pharmacy prescriptions dispensed; more than 29% retail script share cited in the 2026 proxy |
Small-format pharmacy-focused locations | New compact store format unveiled in 2026 to extend community access | Announced Q1 2026 |
Front store merchandise | Over-the-counter drugs, consumer health, beauty, personal care and general merchandise | 17.1% of segment revenue, down from 21.1% in FY2023 |
Proprietary brands | Approximately 4,500 proprietary-brand SKUs available only at CVS | Approximately 20% of front store revenue in 2025 |
ExtraCare | Loyalty card programme with automatic sale pricing, customised coupons and ExtraBucks rewards | One of the largest US retail loyalty programmes |
ExtraCare Plus | Paid subscription membership with a benefits suite plus a promotional reward redeemable for future goods and services | Subscription fee |
Vaccination administration | In-store immunisation, scheduled via CVS.com with digital records | Seasonal peak in Q1 and Q4 |
Diagnostic testing and pharmacy patient care programmes | Ancillary clinical services delivered at the pharmacy counter | Included in segment services revenue |
Coram infusion and enteral nutrition services | Home and ambulatory infusion branches | Branch network; excluded from same-store metrics |
Compounding pharmacies | Specialised preparation | Included in retail specialty operations |
Specialty and mail order fulfilment services | Fulfilment and patient management provided to the Health Services segment | Health Services pays an administrative service fee to this segment |
CVS.com and CVS Health app | Online retail pharmacy, refill management, scheduling, digital savings tools; from early Q4 2026 will display transparent Zepbound and Foundayo pricing including cash-pay options with same-day pickup | Digital sales included in same-store metrics |
340B services | Contract pharmacy arrangements with covered entities | Available at retail locations |
Medicare GLP-1 Bridge programme participation | CMS programme running through 31 December 2027 allowing eligible Medicare beneficiaries to access certain GLP-1 medications for $50 per month | National, subject to state regulation |
Pet prescription dispensing | Filling prescriptions for dogs and cats | Announced August 2026 |
Omnicare long-term care pharmacy | Distribution and consulting to long-term care facilities | Deconsolidated September 2025; assets subsequently approved for sale to GenieRx Holdings for a reported $250 million |
| Offering | Description |
|---|---|
Red Oak Sourcing, LLC | 50/50 generic pharmaceutical sourcing joint venture with Cardinal Health, Inc. Red Oak sources and negotiates generic supply contracts for both parents but does not own or hold inventory. |
CVS Health Ventures | Corporate venture capital arm investing in health technology and services. |
Agentic AI call centre platform | Deployed in 2026 to simplify and streamline call-centre interactions for Aetna and Caremark members and providers on a secure platform; the Company reports reducing overall call volume and the handling time for certain complex calls by 20–30%. |
WeCARE Workflow | Proprietary pharmacy workflow tool prioritising work, facilitating prescriber outreach and integrating clinical programmes. |
AI pharmacist and nurse tools | AI adherence-identification tools for pharmacists; AI support returning approximately 90 minutes per day to Aetna nurses. |
Financial Narrative
6.1 Income statement
Revenue CAGR FY2021–FY2025: 8.31% (computed). Adjusted EPS CAGR over the same period is negative at approximately -5.3% — the single most important number in this dossier. CVS has compounded revenue at more than 8% while destroying per-share earnings, because the incremental revenue is low-margin Government premium and drug-mix inflation, not profit.
Commentary on trends and inflections.
FY2021 was the peak of the post-Aetna model. Operating margin of 4.52% and net margin of 2.71% have not been approached since. COVID-19 testing and vaccination volumes flattered the retail segment.
FY2022 was the first litigation shock. GAAP operating income halved on $5.8 billion of opioid litigation charges and an approximately $2.5 billion loss on assets held for sale for the long-term care business. Adjusted EPS nonetheless rose to $8.69, demonstrating how far the adjusted measure had drifted from GAAP reality.
FY2023 was the acquisition year. Signify Health and Oak Street Health closed within five weeks of each other, adding roughly $18.6 billion of purchase price and pushing goodwill from $78.2 billion to $90.7 billion. GAAP results recovered because the 2022 charges did not repeat, not because operations improved: adjusted operating margin was already compressing.
FY2024 was the break. Health Care Benefits adjusted operating income fell from $5,553 million to $307 million — a 94% collapse — on Medicare Advantage utilisation and Part D. Adjusted EPS fell 38% to $5.42. The Company recorded approximately $1.2 billion of restructuring charges, replaced the CEO, and added four directors under investor pressure.
FY2025 was bifurcated. Adjusted operating income rose 20.6% to $14.4 billion and adjusted EPS rose 24.5% to $6.75, while GAAP operating income fell 45.3% to $4.66 billion. The gap of $9.8 billion between GAAP and adjusted operating income is the largest in the Company's history and comprises: $5,725 million goodwill impairment, $1,976 million intangible amortisation, $1,220 million legacy litigation charges, $320 million opioid litigation charge, $288 million Accountable Care loss, $117 million integration costs, $83 million clinic closure charge, and smaller items. The effective tax rate fell to 19.1% because of an approximately $1.9 billion worthless-stock deduction arising from the Omnicare bankruptcy — an extraordinary, non-repeating benefit that flattered GAAP net income by roughly $1.51 per share.
An investor reading GAAP alone would see FY2025 net income of $1.77 billion on $402 billion of revenue, a 0.44% net margin — the worst in at least a decade. An investor reading adjusted EPS alone would see 24.5% growth. Both are true; neither is sufficient.
6.2 Balance sheet
Balance sheet commentary. Three facts dominate.
First, goodwill and intangibles of $110.99 billion at 31 December 2025 exceed total shareholders' equity of $75.38 billion by 47%. Tangible book value is deeply negative. Every remaining dollar of goodwill on the Health Care Delivery unit is a live impairment candidate — the FY2025 charge took $5.7 billion but did not eliminate the unit's carrying value.
Second, working capital is structurally negative — approximately -$14.0 billion at FY2025 — because pharmacy claims and discounts payable ($26.3 billion) plus health care costs payable ($15.4 billion) plus accounts payable ($17.6 billion) fund the business. This is normal for the model but means the current ratio of 0.84 is not a distress signal.
Third, deleveraging is real but slow. Total debt fell from $66.27 billion to $64.57 billion during FY2025 and to $61.41 billion at 30 June 2026. Management reported a leverage ratio of 3.84x at 31 March 2026, improving.
At 30 June 2026 the balance sheet had strengthened materially: cash of $11,329 million, total debt of $61,410 million, total shareholders' equity of $79,899 million, and goodwill unchanged at $85,478 million with intangibles at $24,644 million.
6.3 Cash flow
Cash flow commentary. Operating cash flow fell 50% from $18.3 billion in FY2021 to $9.1 billion in FY2024 before recovering to $10.6 billion in FY2025. That is the cleanest single indicator of what has happened to this business — GAAP earnings volatility can be argued about, but cash conversion cannot. The recovery in FY2025 was partly a working-capital timing benefit: management explicitly reduced FY2026 operating cash flow guidance to at least $9.0 billion (from at least $10.0 billion) at the February 2026 results, citing payments that shifted from 2026 into late 2025. That guidance was then raised twice during 2026 — to at least $9.5 billion in May and to at least $11.5 billion in August — on genuine underlying improvement.
Capital allocation has been decisively reordered. Buybacks went from $5.0 billion in FY2023 to zero in FY2025. The dividend has been held flat at $0.665 per quarter since the 2024 increase, meaning three consecutive years of a frozen dividend. Total capital returned fell from $8.05 billion in FY2023 to $3.40 billion in FY2025. Every incremental dollar is going to deleveraging.
H1 2026 operating cash flow of $10,594 million against $6,453 million in H1 2025 represents a 64% increase, with approximately $6.3 billion generated in Q2 2026 alone versus $1.9 billion in the prior-year quarter.
6.4 Ratio analysis
(All ratios computed by the analyst. GAAP EBITDA = GAAP operating income plus depreciation and amortisation. Adjusted EBITDA = adjusted operating income plus depreciation excluding intangible amortisation, which was $1,976 million in FY2025 and $2,025 million in FY2024. Averages of opening and closing balances used for ROE and ROA.)
Cash conversion cycle. Not meaningfully computable for CVS on a conventional basis: the business carries $19.2 billion of retail inventory against $26.3 billion of pharmacy claims payable and $15.4 billion of health care costs payable, giving a structurally negative cycle. Days claims payable — the relevant analogue for the insurance business — was 38.9 days at 31 December 2025, 42.9 at 31 March 2026 and 41.7 at 30 June 2026.
ROIC. Not meaningfully computable from disclosed data without allocating the Aetna float. Directionally: adjusted operating income of $14.4 billion against invested capital of roughly $140 billion (equity plus total debt) implies a pre-tax adjusted ROIC around 10%, against a weighted average cost of capital that is plausibly 7–8%. On a GAAP basis, ROIC is comfortably below cost of capital. Morningstar's published no-moat rating on CVS rests explicitly on this point, citing a history of "giving away economic profitability through acquisitions."
6.5 Interim 2026 results
(Q1 2026 revenue and operating income shown as reported in the Q1 2026 release; H1 figures from the Q2 2026 release, which is the authoritative reconciliation.)
Financial Detail
Financial Analysis
| Metric | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
Total revenues (USD M) | 292111 | 322467 | 357776 | 372809 | 402067 |
Revenue growth (%) | 8.71 | 10.39 | 10.95 | 4.20 | 7.85 |
Gross profit, computed (USD M) | n.v. | 54500 | 54430 | 51401 | 55362 |
Operating income, GAAP (USD M) | 13193 | 7955 | 13743 | 8516 | 4660 |
Adjusted operating income (USD M) | n.v. | n.v. | 17383 | 11976 | 14443 |
Interest expense (USD M) | 2503 | 2287 | 2650 | 2958 | 3119 |
Income before income tax provision (USD M) | 10420 | n.v. | 11155 | 6148 | 2136 |
Income tax provision (USD M) | 2522 | n.v. | 2808 | 1562 | 408 |
Effective tax rate (%) | 24.20 | 25.90 | 25.10 | 25.40 | 19.10 |
Net income attributable to CVS Health (USD M) | 7910 | 4149 | 8344 | 4614 | 1768 |
Basic EPS (USD) | 6.00 | 3.16 | 6.49 | 3.67 | 1.40 |
Diluted EPS (USD) | 5.95 | 3.14 | 6.47 | 3.66 | 1.39 |
Adjusted EPS (USD) | 8.40 | 8.69 | 8.74 | 5.42 | 6.75 |
Dividends declared per share (USD) | 2.00 | 2.20 | 2.42 | 2.66 | 2.66 |
Weighted average diluted shares (millions) | 1330 | 1321 | 1290 | 1262 | 1271 |
Financial Analysis
| Margin metric (%) | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
Gross margin, computed | n.v. | 16.90 | 15.21 | 13.79 | 13.77 |
GAAP operating margin | 4.52 | 2.47 | 3.84 | 2.28 | 1.16 |
Adjusted operating margin | n.v. | n.v. | 4.86 | 3.21 | 3.59 |
Net margin | 2.71 | 1.29 | 2.33 | 1.24 | 0.44 |
Financial Analysis
| Metric | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
Total assets (USD M) | 232999 | 228275 | 249728 | 253215 | 253538 |
Cash and cash equivalents (USD M) | 9408 | 12945 | 8196 | 8586 | 8453 |
Short-term investments (USD M) | n.v. | n.v. | n.v. | 2407 | 2145 |
Accounts receivable, net (USD M) | n.v. | n.v. | n.v. | 36469 | 39779 |
Inventories (USD M) | n.v. | n.v. | n.v. | 18107 | 19246 |
Total current assets (USD M) | n.v. | n.v. | n.v. | 68645 | 74714 |
Long-term investments (USD M) | n.v. | n.v. | n.v. | 28934 | 32669 |
Property and equipment, net (USD M) | n.v. | n.v. | n.v. | 12993 | 13083 |
Operating lease right-of-use assets (USD M) | n.v. | n.v. | n.v. | 15944 | 14973 |
Goodwill (USD M) | 79121 | 78150 | 90700 | 91272 | 85478 |
Intangible assets, net (USD M) | n.v. | n.v. | n.v. | 27323 | 25508 |
Total current liabilities (USD M) | n.v. | n.v. | n.v. | 84609 | 88692 |
Short-term debt (USD M) | 0 | 0 | 200 | 2119 | 0 |
Current portion of long-term debt (USD M) | 4205 | 1778 | 2772 | 3624 | 4068 |
Long-term debt (USD M) | 51971 | 50476 | 58600 | 60527 | 60502 |
Total debt (USD M) | 56176 | 52254 | 61572 | 66270 | 64570 |
Net debt, computed (USD M) | 46768 | 39309 | 53376 | 57684 | 56117 |
Total shareholders' equity (USD M) | 75381 | 71070 | 76461 | 75730 | 75382 |
Total liabilities (USD M) | n.v. | n.v. | n.v. | 177485 | 178156 |
Goodwill and intangibles as share of equity (%) | n.v. | n.v. | n.v. | 156.8 | 147.2 |
Working capital, computed (USD M) | n.v. | n.v. | n.v. | -15964 | -13978 |
Financial Analysis
| Metric | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
Net cash provided by operating activities (USD M) | 18265 | 16177 | 13426 | 9107 | 10639 |
Purchases of property and equipment (USD M) | 2520 | 2727 | n.v. | 2781 | 2832 |
Free cash flow, computed (USD M) | 15745 | 13450 | n.v. | 6326 | 7807 |
Depreciation and amortisation (USD M) | n.v. | n.v. | n.v. | 4597 | 4606 |
Acquisitions, net of cash acquired (USD M) | n.v. | n.v. | n.v. | 95 | 436 |
Dividends paid (USD M) | 2625 | 2882 | 3051 | 3373 | 3397 |
Share repurchases (USD M) | 0 | 3500 | 5000 | 3023 | 0 |
Total capital returned (USD M) | 2625 | 6382 | 8051 | 6396 | 3397 |
Proceeds from issuance of long-term debt (USD M) | n.v. | n.v. | n.v. | 7913 | 3969 |
Repayments of long-term debt (USD M) | n.v. | n.v. | n.v. | 4773 | 3629 |
Net cash used in investing activities (USD M) | n.v. | n.v. | n.v. | 7613 | 5871 |
Net cash used in financing activities (USD M) | n.v. | n.v. | n.v. | 1135 | 4940 |
Financial Analysis
| Ratio | FY2024 | FY2025 |
|---|---|---|
Return on equity, GAAP (%) | 6.07 | 2.35 |
Return on assets, GAAP (%) | 1.83 | 0.70 |
Return on equity on adjusted income (%) | 9.00 | 11.37 |
Current ratio | 0.81 | 0.84 |
Total debt to equity | 0.88 | 0.86 |
Net debt to equity | 0.76 | 0.74 |
Net debt to GAAP EBITDA, computed | 4.40 | 6.06 |
Net debt to adjusted EBITDA, computed | 3.51 | 3.29 |
Interest coverage on GAAP operating income | 2.88 | 1.49 |
Interest coverage on adjusted operating income | 4.05 | 4.63 |
Asset turnover | 1.48 | 1.59 |
Goodwill plus intangibles to total assets (%) | 46.83 | 43.78 |
Financial Analysis
| Metric (USD M except per share) | Q1 2025 | Q1 2026 | Q2 2025 | Q2 2026 | H1 2025 | H1 2026 |
|---|---|---|---|---|---|---|
Total revenues | 94588 | 100426 | 98915 | 106096 | 193503 | 206522 |
Operating income | 3374 | 4680 | 2381 | 4703 | 5755 | 9383 |
Adjusted operating income | 4579 | 5150 | 3808 | 5157 | 8387 | 10307 |
Net income attributable to CVS Health | 1779 | 2943 | 1021 | 2979 | 2800 | 5922 |
Diluted EPS (USD) | 1.41 | 2.30 | 0.80 | 2.31 | 2.21 | 4.61 |
Adjusted EPS (USD) | 2.25 | 2.57 | 1.81 | 2.58 | 4.06 | 5.16 |
Geographic Revenue
| Premium revenue by business (USD M) | FY2024 | FY2025 |
|---|---|---|
Government | 88433 | 103362 |
Commercial | 34416 | 31387 |
Geographic Revenue
| Growth rate (%) | FY2025 |
|---|---|
Government premiums | 16.88 |
Commercial premiums | -8.80 |
Geographic Revenue
| Channel revenue (USD M) | FY2024 | FY2025 |
|---|---|---|
Pharmacy network | 91650 | 101775 |
Mail and specialty | 70877 | 79334 |
Other | 10793 | 9296 |
Net investment income | 285 | 20 |
Geographic Revenue
| Growth rate (%) | FY2025 |
|---|---|
Pharmacy network | 11.05 |
Mail and specialty | 11.93 |
Other | -13.87 |
Geographic Revenue
| Line (USD M) | FY2024 | FY2025 |
|---|---|---|
Pharmacy | 100687 | 115510 |
Front store | 21522 | 21459 |
Other | 2291 | 2398 |
Geographic Revenue
| Growth rate (%) | FY2025 |
|---|---|
Pharmacy | 14.72 |
Front store | -0.29 |
Other | 4.67 |
Geographic Revenue
| Line | Direction | Cause |
|---|---|---|
Government premiums (+16.9% FY2025) | Fastest growing | Inflation Reduction Act redesign of Medicare Part D shifted claim liability from the government to plans, inflating gross premium revenue without proportionate margin; Medicare Advantage rate increases |
Retail pharmacy (+14.7% FY2025) | Fast growing | Drug mix (GLP-1 and specialty brand inflation), increased utilisation, and incremental volume from the Rite Aid prescription file acquisitions completed in Q3 2025 |
Mail and specialty (+11.9% FY2025) | Fast growing | Specialty drug mix and brand inflation |
Front store (-0.3% FY2025, -0.3% FY2024) | Declining | Structural erosion of convenience retail to e-commerce and mass merchants; store closures |
Commercial premiums (-8.8% FY2025, -21.8% H1 2026) | Sharply declining | Deliberate margin-led repricing, loss of Insured Commercial members to ASC, and the exit of the individual public exchange business effective January 2026 |
Health Services "Other" revenue (-13.9% FY2025) | Declining | Divestiture of MSSP operations and wind-down of ACO REACH |
Standalone Medicare PDP membership (-17.2% FY2025) | Sharply declining | Pricing discipline in a Part D market disrupted by the IRA redesign; membership fell from 4.88 million to 4.04 million and to 3.87 million by 30 June 2026 |
Capital Markets
| Metric | Value | As of |
|---|---|---|
Share price (USD) | 95.35 | 14 August 2026 |
Share price (USD) | 104.42 | 4 August 2026 close, the day before Q2 results |
Share price (USD) | approximately 94.76 | 5 August 2026 premarket, following the Q2 call |
Share price (USD) | 76.53 | 9 December 2025, Investor Day |
Market capitalisation (USD bn) | 121.9 | 14 August 2026 |
Market capitalisation (USD bn) | 121.6 | 12 August 2026 |
Market capitalisation (USD bn) | 126.8 | 5 August 2026 |
Market capitalisation (USD bn) | 137.5 | 24 July 2026 |
Market capitalisation (USD bn) | 136.4 | 23 July 2026 |
Shares outstanding (millions) | 1272.2 | 4 February 2026 |
Public float (USD bn) | 86.4 | 30 June 2025 |
Capital Markets
| Period | Return / change | Source basis |
|---|---|---|
2025 year to date, as of 20 November 2025 | +77.8% | InvestingPro, cited in contemporaneous coverage |
Trailing 12 months, market cap, as of 5 August 2026 | +62.7% | stockanalysis.com |
Trailing 12 months, market cap, as of 12 August 2026 | +46.4% | financecharts.com |
Trailing 30 days, market cap, as of 12 August 2026 | -10.0% | financecharts.com |
5-year context | Market capitalisation of $121.6–137.5bn in 2026 against a 1998 base of $19.55bn | stockanalysis.com |
Capital Markets
| Multiple | Value | Basis |
|---|---|---|
Trailing P/E | 25.0 | $95.35 against trailing twelve-month GAAP EPS of approximately $3.81 |
Forward P/E on 2026 guided adjusted EPS | 11.9 | $95.35 against the $8.00 guidance midpoint |
Forward P/E on 2027 consensus adjusted EPS | 11.4 | $95.35 against a pre-Q2 consensus of $8.37; this consensus predates the guidance raise and the 2027 Caremark commentary and will move |
Price to book | 1.20 | $121.9bn market cap against $79.9bn total shareholders' equity at 30 June 2026 |
Price to tangible book | not meaningful | Tangible book value is negative |
Enterprise value (USD bn) | approximately 172.0 | Market cap $121.9bn plus total debt $61.4bn less cash $11.3bn, at 30 June 2026 |
EV / sales on 2026 guided revenue | 0.42 | Against at least $414bn |
EV / adjusted EBITDA | approximately 8 | Against an annualised H1 2026 adjusted operating income run-rate of roughly $20bn plus depreciation ex-intangible amortisation of roughly $2.7bn; approximate |
Dividend yield | 2.81% | $2.66 annualised against $95.35 |
Capital Markets
| Metric | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 | FY2026E |
|---|---|---|---|---|---|---|
Quarterly dividend per share (USD) | 0.500 | 0.550 | 0.605 | 0.665 | 0.665 | 0.665 |
Annual dividend per share (USD) | 2.00 | 2.20 | 2.42 | 2.66 | 2.66 | 2.66 |
Dividends paid (USD M) | 2625 | 2882 | 3051 | 3373 | 3397 | n.d. |
Payout ratio on adjusted EPS (%) | 23.8 | 25.3 | 27.7 | 49.1 | 39.4 | 33.3 |
Capital Markets
| Metric | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 | H1 2026 |
|---|---|---|---|---|---|---|
Share repurchases (USD M) | 0 | 3500 | 5000 | 3023 | 0 | 0 |
Capital Markets
| Agency | Long-term rating | Outlook | Note |
|---|---|---|---|
Moody's Ratings | Baa3 | Stable | The final investment-grade notch. Historically the Company disclosed Baa2 in its filings through at least mid-2024; the Baa3 designation is from a 2026 third-party compilation |
S&P Global Ratings | BBB | Stable | S&P revised the outlook to negative in August 2024 and published a further outlook revision in May 2026; the direction of the May 2026 action was not confirmed in this compilation |
Fitch Ratings | BBB | Negative | Per 2026 third-party compilation |
Commercial paper | P-2 (Moody's) / A-2 (S&P) | n/a | As disclosed in prior filings; not re-verified for 2025–26 |
Capital Markets
| Debt metric | FY2024 | FY2025 | H1 2026 |
|---|---|---|---|
Short-term debt (USD M) | 2119 | 0 | 0 |
Current portion of long-term debt (USD M) | 3624 | 4068 | 1958 |
Long-term debt (USD M) | 60527 | 60502 | 59452 |
Total debt (USD M) | 66270 | 64570 | 61410 |
Cash and cash equivalents (USD M) | 8586 | 8453 | 11329 |
Net debt (USD M) | 57684 | 56117 | 50081 |
Interest expense (USD M) | 2958 | 3119 | 1531 (H1) |
Management-reported leverage ratio | n.d. | n.d. | 3.84x at 31 March 2026 |
Capital Markets
| Institution | Action | Target (USD) | Date |
|---|---|---|---|
Evercore ISI | Target lowered | 125 | 6 August 2026 |
UBS | Target raised from 115 | 122 | early August 2026 |
Baird | Target raised from 94 | 107 | 6 August 2026 |
Undisclosed (via TipRanks) | Buy reiterated | 110 | 6 August 2026 |
Undisclosed (via TipRanks) | Buy reiterated | 106 | 6 August 2026 |
Morgan Stanley | Buy maintained | not disclosed | 9 August 2026 |
Wells Fargo | Buy maintained | not disclosed | 10 August 2026 |
J.P. Morgan | Buy maintained | not disclosed | 11 August 2026 |
RBC Capital | Buy maintained | not disclosed | 6 August 2026 |
Morningstar | No-moat rating; EPS estimates at the top end of management targets | not disclosed | February 2026 |
Analyst Conclusions
22.1 Management guidance and consensus
Medium-term: mid-teens adjusted EPS CAGR through 2028 from the FY2025 base of $6.75, implying adjusted EPS approaching $10.30 by 2028. Health Care Benefits full-year 2026 adjusted operating income was guided at Q1 to approximately $4.00–$4.34 billion.
Consensus (pre-Q2, July 2026): adjusted EPS of $7.44 for 2026 and $8.37 for 2027. Both figures now trail management's own guidance and will be revised upward for 2026; the 2027 number is the contested one.
22.2 Bull case
1. The Aetna recovery is ahead of plan and mechanical, not speculative. The medical benefit ratio has moved from 92.5% (FY2024) to 91.2% (FY2025) to 86.0% (H1 2026). Health Care Benefits adjusted operating income has moved from $307 million to $2,939 million to $5,467 million in H1 2026 alone. Management raised full-year adjusted EPS guidance by $0.30 in May and a further $0.60 in August, and raised operating cash flow guidance from at least $9.0 billion to at least $11.5 billion across the same period. Two of these raises followed quarters in which the Company retained its explicit "cautious view" language — the guidance is being set conservatively and beaten.
2. CVS is the last national retail pharmacy standing, and it is being handed share. Rite Aid has liquidated. Walgreens was taken private in August 2025, split into five entities, had its ratings withdrawn and is closing 1,200 stores. CVS acquired Rite Aid prescription files for a fraction of what a store-build programme would cost, absorbed approximately 9 million patients, and delivered same-store prescription volume growth of 8.0% in FY2025 and 6.9% in H1 2026 — the best retail script growth in the sector. Approximately 28.5% of all US retail prescriptions now flow through CVS, and 85% of Americans live within ten miles of a store.
3. Regulatory uncertainty has been converted into a known compliance timetable, and the valuation has not reflected it. The FTC insulin case — the single largest overhang on the PBM for two years — is settled, with no fine, no admission of wrongdoing, and core requirements not effective until 1 January 2028. The countersuit is dismissed. The settlement also resolved outstanding FTC investigations into rebate, pharmacy network, contract and vertical integration issues. At roughly 12x guided 2026 adjusted EPS with a 2.8% dividend and $11.5 billion of operating cash flow, CVS is priced as though the PBM is about to be broken up. It has just been given a compliance path instead.
22.3 Bear case
1. The 2027 Caremark problem is real, and management raised it themselves. The stock fell 6–9% on 5 August 2026 on a quarter that beat consensus adjusted EPS by roughly 40% — because management flagged expected PBM membership declines in 2027. Tyson Foods left for Rightway in 2024. Blue Shield of California moved core services to Prime Therapeutics in 2025. Health Services adjusted operating income was $7,357 million in FY2023, $7,243 million in FY2024 and $7,151 million in FY2025 — three consecutive years of decline in the segment that is supposed to fund the enterprise. H1 2026 growth was 1.4%. The FTC consent order's delinking requirement, effective 1 January 2028, removes a rebate-capture mechanism that has historically been a material profit source, and the Company has not quantified the impact.
2. GAAP earnings are not close to adjusted earnings, and the gap is structural. FY2025 GAAP operating income was $4,660 million against adjusted operating income of $14,443 million — a $9.8 billion difference. GAAP net income of $1,768 million included a $483 million deconsolidation gain and an approximately $1.9 billion worthless-stock tax benefit worth $1.51 per share; without them the Company would have posted a GAAP loss on $402 billion of revenue. Intangible amortisation alone runs at approximately $1,730 million a year and is guided to continue into 2026. Goodwill and intangibles of $110.99 billion against $75.38 billion of equity mean tangible book value is deeply negative and a second impairment of the Health Care Delivery unit — which has already absorbed $5.7 billion — remains live while the business is targeted only at "breakeven."
3. The earnings recovery is single-source, non-repeatable in part, and running into a rate and ratings headwind. Every dollar of the $1,920 million H1 2026 adjusted operating income improvement came from Health Care Benefits; Health Services and Pharmacy & Consumer Wellness were flat and Corporate/Other deteriorated by $311 million. Within Health Care Benefits, $1.2 billion of favourable prior-year reserve development in H1 2026 and approximately $500 million (140 basis points of MBR) of favourable prior-year development and risk adjustment items in Q2 alone are not recurring sources. Meanwhile, Medicare Advantage star ratings deteriorated from 88% to 81% of members in 4.0+ star plans, reducing 2027 bonus revenue; CMS is now auditing every MA contract every payment year; the Medicare Drug Negotiation Program expands from 2026; Medicaid funding is contracting under the 2025 legislation; and CVS carries the last investment-grade notch at Moody's with a reported negative outlook at Fitch and $56–61 billion of net debt.
22.4 Catalysts and monitorables — next twelve months
22.5 Analyst verdict
CVS Health at $95 is a company that has been fixed operationally but not yet structurally, priced by a market that understands the distinction better than the guidance does.
The operational fix is not in doubt. Aetna's medical benefit ratio has fallen 650 basis points in eighteen months, Health Care Benefits adjusted operating income has gone from $307 million to a $5.5 billion first half, operating cash flow has been guided up twice from at least $9.0 billion to at least $11.5 billion, and the retail pharmacy business is taking share from a collapsing competitive set at almost no capital cost. Management under Joyner and Newman has beaten its own guidance in three consecutive quarters while explicitly maintaining a cautious posture. That is what competent execution looks like, and it deserves credit.
The structural question is untouched. Health Services adjusted operating income has now declined in three consecutive years, and management itself introduced 2027 Caremark membership declines on the Q2 call — costing the stock nine percent on a forty percent earnings beat, which tells you precisely where the market's attention sits. The FTC consent order's delinking requirement lands on 1 January 2028 and has not been quantified. Goodwill of $85.5 billion still sits on a balance sheet with $75–80 billion of equity, and the health care delivery unit that absorbed a $5.7 billion impairment is being asked only to break even. Adjusted EPS is still 20% below its FY2021 level after four years of 8% revenue compounding — the clearest evidence available that this business converts scale into revenue rather than profit.
The mid-teens CAGR to 2028 therefore requires two things: that Aetna's normalisation holds without the reserve development that has flattered recent quarters, and that Caremark stops shrinking. The first looks achievable. The second is unproven, and 2028 is precisely when the FTC order bites.
At roughly 12x guided 2026 adjusted earnings with a 2.8% yield, a 56-year dividend record and $11.5 billion of operating cash flow, the risk is priced with reasonable honesty — which is why the sell-side target range of $106 to $125 skews bullish. This is a credible recovery story with a genuine, dated, unquantified 2027–2028 problem attached. The February 2027 guidance event, not the next quarter, is where the thesis will be settled.
APPENDIX: SOURCE REGISTER
Data quality caveats. Figures marked n.v. were disclosed in prior-year Forms 10-K but were not re-verified against the primary filing in this compilation; they should be read from the relevant 10-K before use. Credit ratings, ESG ratings, ownership percentages and third-party headcount estimates are drawn from secondary sources and carry the usual risk of staleness. FY2024 segment revenues differ between the FY2024 Form 10-K and the FY2025 earnings release; the latter basis is used here and should be applied consistently. Where the Company reports both GAAP and adjusted measures, both are presented; the divergence between them in FY2025 is unusually large and material to any analysis.
Executive Leadership
| Name | Title | Notes |
|---|---|---|
J. David Joyner | Chairman and Chief Executive Officer | Age 61. President and CEO since 17 October 2024; Chair since 1 January 2026. Previously EVP and President of Pharmacy Services from January 2023; advisor to health care enterprises September 2020 – January 2023; EVP Sales and Account Services, CVS Caremark 2004–December 2019. Began his career at Aetna in 1986, joined Caremark Prescription Services in 1993. Nearly 40 years in health care and PBM. B.S., Rawls College of Business, Texas Tech University. |
Brian O. Newman | Executive Vice President and Chief Financial Officer | CFO since May 2025 (designate from 21 April 2025). Previously EVP and CFO of United Parcel Service August 2019 – May 2024; 26 years at PepsiCo in senior finance roles across Europe, Asia, North and South America. |
Prem Shah | Executive Vice President and Group President | Group President since 6 November 2024, responsible for operational performance and integrated value creation across CVS Caremark, CVS Pharmacy and Health Care Delivery. Joined CVS Health 2013; previously EVP and Chief Pharmacy Officer and President, Pharmacy and Consumer Wellness. |
Steve Nelson | Executive Vice President and President, Aetna | Age 67. Appointed November 2024. Previously CEO of ChenMed (February–August 2024); former CEO of UnitedHealthcare, a division of UnitedHealth Group. |
Tilak Mandadi | Executive Vice President, Ventures and Chief Experience and Technology Officer | Age 62. In role since July 2022. Previously Chief Strategy Officer of MGM Resorts International (2021–2022) and EVP Digital and Global CTO of Disney Parks, Experiences and Products (2013–2021). |
Sree Chaguturu, MD | Executive Vice President and President of Health Care Delivery | Oversees Oak Street Health, Signify Health and MinuteClinic. |
Amy Compton-Phillips, MD | Executive Vice President and Chief Medical Officer | Clinical strategy across the enterprise. |
Ed DeVaney | Executive Vice President and President, Caremark | PBM leadership. |
Katerina Guerraz | Executive Vice President, CVS Health, and Chief Operating Officer, Aetna, and President of Medicaid, Aetna | Combined operating and Medicaid leadership. |
Sam Khichi | Executive Vice President, Corporate Affairs and Chief Legal Officer | Legal, compliance and public affairs. |
Heidi Capozzi | Executive Vice President and Chief People Officer | Human capital strategy; reports to the CEO with Board oversight. |
Len Shankman | Executive Vice President and President, Pharmacy Services | Pharmacy services leadership. |
Siddharth (Sid) Tenneti | Senior Vice President and Interim President, Pharmacy and Consumer Wellness | Interim leadership of the retail segment as of August 2026. |
Larry McGrath | Executive Vice President, Capital Markets | Investor relations and capital markets; hosts earnings calls. |
Kristina V. Fink | Senior Vice President, Corporate Secretary and Chief Governance Officer | Signed the 2026 notice of annual meeting. |
| Executive | Salary (USD) | Stock awards (USD) | Option awards (USD) | Non-equity incentive (USD) | All other (USD) | Total (USD) |
|---|---|---|---|---|---|---|
J. David Joyner, President and CEO | 1500000 | 14499931 | 0 | 4695900 | 453609 | 21214084 |
Prem Shah, EVP and Group President | 1100000 | 7199920 | 1799993 | 3013000 | 266297 | 13379210 |
Steve Nelson, EVP and President, Aetna | 1000000 | 5799915 | 1449994 | 2988000 | 349201 | 11587110 |
Tilak Mandadi, EVP Ventures and CETO | 1000000 | 5599965 | 1399996 | 2561000 | 416755 | 10977716 |
Brian O. Newman, EVP and CFO | 696970 | 5599950 | 1399989 | 1562000 | 161599 | 9420508 |
Thomas F. Cowhey, former EVP and CFO | 420830 | 4400000 | 0 | 0 | 791240 | 6720000 |
| Director | Principal occupation | Age | Director since | Independent | Committees | Other public boards |
|---|---|---|---|---|---|---|
Fernando Aguirre | Former Chairman, President and CEO, Chiquita Brands International | 68 | November 2018 | Yes | Audit (Chair); MP&D | 2 (Barry Callebaut AG; Synchrony Financial) |
Jeffrey R. Balser, M.D., Ph.D. | President and CEO, Vanderbilt University Medical Center; Dean, Vanderbilt University School of Medicine | 64 | September 2022 | Yes | Health Services & Technology (Chair); Audit; Executive | None |
C. David Brown II | Partner, Nelson Mullins Riley & Scarborough LLP | 74 | March 2007 | Yes | MP&D (Chair); N&CG; PP&EA | None |
Alecia A. DeCoudreaux | President Emerita, Mills College at Northeastern University; former Eli Lilly executive | 71 | March 2015 | Yes | HS&T; N&CG | 1 (Parnassus Funds) |
Anne M. Finucane | Chair, Rubicon Carbon; former Vice Chairman, Bank of America | 73 | January 2011 | Yes | PP&EA (Chair); MP&D; Executive | 1 (Williams-Sonoma) |
John E. Gallina | Former EVP and CFO, Elevance Health | 66 | March 2026 | Yes | Audit | 1 (Arrive AI) |
J. David Joyner | President, CEO and Chair, CVS Health | 61 | October 2024 | No (employment) | Executive (Chair); PP&EA | None |
J. Scott Kirby | CEO, United Airlines Holdings | 58 | October 2023 | Yes | HS&T; N&CG | 1 (United Airlines) |
Michael F. Mahoney | Chairman, President and CEO, Boston Scientific | 61 | November 2023 | Yes — Lead Independent Director since March 2025 | N&CG (Chair); MP&D; Executive | 1 (Boston Scientific) |
Leslie V. Norwalk | Strategic Counsel, Epstein Becker & Green; former Acting Administrator, CMS | 60 | November 2024 | No (past expert-witness service in Company litigation) | HS&T; PP&EA | 3 (Arvinas; Neurocrine Biosciences; Globus Medical) |
Larry M. Robbins | Founder, CEO and Portfolio Manager, Glenview Capital Management | 56 | November 2024 | Yes | Audit; PP&EA | 1 (Butterfly Network) |
Guy P. Sansone | Co-Founder, Chairman and CEO, H2 Health | 61 | November 2024 | Yes | Audit; N&CG | 1 (Pediatrix Medical Group) |
Douglas H. Shulman | Chairman and CEO, OneMain Holdings; former IRS Commissioner | 58 | November 2024 | Yes | HS&T; MP&D | 1 (OneMain Holdings) |
| Holder | Reported stake (%) | Source and date |
|---|---|---|
BlackRock, Inc. | 9.87 (125.92 million shares) | WallStreetZen, early August 2026 |
The Vanguard Group, Inc. | approximately 9.5 | Multiple trackers, 2026 |
State Street Corporation | approximately 4.1 | Third-party compilation, year-end 2025 proxy filings |
Capital World Investors | Top-10 holder; stake not verified | Fintel |
Dodge & Cox | Top-10 holder; stake not verified | Fintel |
Glenview Capital Management, LLC | Low single digits; reported as the holder with the largest share of its own assets in CVS | Third-party compilation |
Vanguard Total Stock Market Index Fund | Top-10 fund holder | Fintel |
Dodge & Cox Stock Fund | Top-10 fund holder | Fintel |
Vanguard 500 Index Fund | Top-10 fund holder | Fintel |
Washington Mutual Investors Fund | Top-10 fund holder | Fintel |
Competitive Landscape
| Segment | Named and identified competitors |
|---|---|
Health Care Benefits | UnitedHealthcare (UnitedHealth Group); Elevance Health and the Blue Cross Blue Shield licensee system; The Cigna Group; Humana; Centene; Molina Healthcare; health-system-owned plans; third-party administrators; Original Medicare (explicitly identified by the Company as the largest competitor in Medicare products); start-up and provider-owned plans; Oscar Health; Alignment Healthcare |
Health Services (PBM) | The Express Scripts business of The Cigna Group; the Optum Rx business of UnitedHealth Group; Prime Therapeutics (named in the 10-K); MedImpact (named in the 10-K); CarelonRx (Elevance); Navitus; Capital Rx; smaller standalone PBMs |
Health Services (care delivery) | Large and medium local and national primary care providers; health-system-affiliated practices; agilon health; Privia Health; ChenMed; One Medical (Amazon); VillageMD; Optum Health |
Health Services (in-home evaluations) | Pure-play health risk assessment providers; large payors performing assessments in-house or through multiple vendors |
Health Services (MinuteClinic) | Retail health clinics; urgent care; primary care offices |
Pharmacy & Consumer Wellness | Walgreens (named in the 10-K); Walmart (named); Amazon (named); supermarkets; discount retailers; independent pharmacies; restrictive pharmacy networks; membership clubs including Costco; infusion pharmacies; mail order dispensing pharmacies; Kroger Health; Mark Cuban Cost Plus Drug Company |
| Metric | CVS Health | UnitedHealth Group | The Cigna Group | Elevance Health |
|---|---|---|---|---|
FY2025 revenue (USD bn) | 402.1 | 447.6 | 274.9 | 197.6 |
FY2025 revenue growth (%) | 7.8 | approximately 8 | 11.0 | 12.8 |
FY2025 net income attributable (USD bn) | 1.77 | 12.05 | 6.0 | n.v. |
FY2025 net margin (%) | 0.44 | 2.69 | 2.18 | n.v. |
FY2025 medical loss / benefit ratio (%) | 91.2 | 89.1 (full year) | n.v. | n.v. |
FY2025 adjusted operating income (USD bn) | 14.44 | n.v. | n.v. | 4.2 (adjusted operating gain) |
Owns a top-3 PBM | Yes (Caremark) | Yes (Optum Rx, $154.7bn FY2025 revenue, +16%) | Yes (Express Scripts) | Yes (CarelonRx, sub-scale) |
Owns a national retail pharmacy chain | Yes (~9,000 stores) | No | No | No |
Owns primary care at scale | Yes (Oak Street, 246 centres) | Yes (Optum Health) | No | Partial (Carelon) |
R&D disclosed | No | No | No | No |
Share price (11 Aug 2026, USD) | approximately 96 | 403.27 | 272.45 | 390.41 |
Recent Developments
--
