CVS shares drop 12.5% despite Q3 profit beat and raised 2026 forecast

CVS Health said on Nov. 4 that it raised its full-year 2026 forecasts after third-quarter adjusted earnings per share of $2.09 beat the $1.67 consensus estimate.

Shares fell 12.5% in regular trading as of 3:59 p.m. ET, from a regular-session close of $91.41.

The company said total revenues rose 5.4% to $108.4 billion, from $102.9 billion a year earlier, topping the $105.74 billion consensus estimate.

Here's how the company did:

• Adjusted EPS: $2.09 vs. $1.60 a year earlier, against the $1.67 consensus estimate
• GAAP diluted EPS: $1.68 vs. a loss of $3.13 a year earlier
• Revenue: $108.4 billion vs. $102.9 billion a year earlier

CVS Health Chairman and CEO David Joyner said the company's businesses delivered results. "Through their continued dedication, each of our businesses delivered another quarter of strong results."

The company said adjusted operating income rose 21.2%, driven by increases across all of its operating segments.

Guidance raised

The company raised its 2026 GAAP diluted EPS forecast to at least $6.98, from a range of $6.84 to $7.04.

It raised its adjusted EPS forecast to at least $8.20, from a range of $7.90 to $8.10.

It also raised its cash flow from operations forecast to at least $15.5 billion, from at least $11.5 billion. The company said the increases reflect its Health Care Benefits and Pharmacy & Consumer Wellness segments, while it keeps a cautious view for the rest of the year because of elevated cost trends and possible macro headwinds.

Segment results

Health Care Benefits adjusted operating income was $912 million, up from $314 million a year earlier. The medical benefit ratio fell to 91.3% from 92.8%.

Health Services adjusted operating income rose 2.7% to $2.11 billion. Pharmacy claims processed increased 1.3%.

Pharmacy & Consumer Wellness adjusted operating income rose 10.6% to $1.64 billion. The company said prescriptions filled increased 1.9%.

Costs and charges

The company recorded a $193 million Omnicare guarantee charge in the quarter, tied to agreements to resolve litigation and Chapter 11 matters involving Omnicare.