CVS Health Corporation【CVS】株式ニュース

CVS HEALTH CORPORATION REPORTS STRONG FIRST QUARTER 2026 RESULTS AND RAISES FULL-YEAR 2026 GUIDANCEMay 6, 2026 6:30 AM
PR Newswire (US) First quarter total revenues increased to $100.4 billion, up 6.2% year-over-yearFirst quarter GAAP diluted EPS of $2.30 and Adjusted EPS of $2.57Raising full-year 2026 guidance:GAAP diluted EPS guidance range to $6.24 to $6.44 from $5.94 to $6.14Adjusted EPS guidance range to $7.30 to $7.50 from $7.00 to $7.20Cash flow from operations guidance to at least $9.5 billion from at least $9.0 billionWOONSOCKET, R.I., May 6, 2026 /PRNewswire/ -- CVS Health Corporation (NYSE: CVS) today announced operating results for the three months ended March 31, 2026."CVS Health continues to provide what people want most from health care: a connected, convenient, cost-effective engagement experience across our unique collection of businesses. We build trust every day in communities across the country by providing better access, affordability and care to nearly 185 million people. Our positive performance is driven by strong execution across our enterprise. We will continue to build momentum through delivering on our strategy and a steadfast focus on our purpose - to simplify health care one person, one family and one community at a time."
                                                                                                           - David Joyner, CVS Health Chairman and CEO
Three Months EndedMarch 31,
Year EndingDecember 31,In billions, except per share amounts2026
2025
2026 ProjectedTotal revenues $     100.4
$       94.6
At least $405.0Diluted earnings per share $       2.30
$       1.41
$6.24-$6.44Adjusted EPS (2)$       2.57
$       2.25
$7.30-$7.50Cash flow from operations$ 4.2
$ 4.6
At least $9.5First quarter GAAP diluted EPS of $2.30 increased from $1.41 in the prior year. Adjusted EPS of $2.57 increased from $2.25 in the prior year, primarily due to improved adjusted operating income in the Health Care Benefits segment, reflecting continued execution on the Health Care Benefits segment margin recovery plan.The Company is increasing its full-year 2026 GAAP diluted EPS, Adjusted EPS and cash flow from operations guidance to reflect increases in the Health Care Benefits and Pharmacy & Consumer Wellness segments, while maintaining a cautious view for the remainder of the year in light of continued elevated cost trends and the potential for macro headwinds.Consolidated first quarter results
Three Months EndedMarch 31,In millions, except per share amounts2026
2025
ChangeTotal revenues $ 100,426
$  94,588
$    5,838Operating income4,680
3,374
1,306Adjusted operating income (1)5,150
4,579
571Net income2,957
1,782
1,175Diluted earnings per share$     2.30
$     1.41
$     0.89Adjusted EPS (2)$     2.57
$     2.25
$     0.32For the three months ended March 31, 2026 compared to the prior year:Total revenues increased 6.2% driven by revenue growth across all operating segments.Operating income increased 38.7% primarily due to the increase in adjusted operating income described below, as well as the absence of a $387 million legacy litigation charge and a $247 million pre-tax loss on the wind down and sale of Accountable Care assets, both recorded in the prior year.Adjusted operating income increased 12.5% primarily driven by an increase in the Health Care Benefits segment. See pages 3 through 5 for additional discussion of the adjusted operating income performance of the Company's segments.Operational UpdatesThe release of the U.S. Centers for Medicare & Medicaid Services' improved Medicare Advantage final rate notice and home health assessment policy enable strong member service and more performance clarity for 2027.Aetna® announced significant progress in streamlining the prior authorization reform, exceeding industry commitments across all benchmarks: standardizing data requirements for 88% of prior authorization volume, approving more than 95% of eligible prior authorizations within 24 hours, processing 83% of prior authorizations in real time and eliminating more than 1 million provider calls through automation and digital tools.CVS Health announced Health100, a health technology services subsidiary, which will use Google Cloud's AI technologies to deliver a fully integrated health care engagement platform to provide a connected, proactive and personalized experience for American consumers.CVS Pharmacy® continues to increase community access to care, including through the unveiling of small pharmacy-focused locations in 2026.Health Care Benefits segmentThe Health Care Benefits segment offers a full range of insured and self-insured ("ASC") medical, pharmacy, dental and behavioral health products and services. The segment results for the three months ended March 31, 2026 and 2025 were as follows:
Three Months EndedMarch 31,In millions, except percentages2026
2025
ChangeTotal revenues$ 35,971
$ 34,810
$   1,161Adjusted operating income (1)3,041
1,993
1,048Medical benefit ratio ("MBR") (3)84.6 %
87.3 %
(2.7) %Medical membership (4)26.0
27.1
(1.1)Total revenues increased 3.3% for the three months ended March 31, 2026 compared to the prior year primarily driven by an increase in the Government business, partially offset by a decline as a result of the Company's exit of the individual exchange business in 2026.Adjusted operating income increased 52.6% for the three months ended March 31, 2026 compared to the prior year primarily driven by improved underlying performance in the Government business and the absence of the $448 million premium deficiency reserve recorded within the individual exchange product line in the prior year, partially offset by lower favorable prior-year development.The MBR decreased to 84.6% in the three months ended March 31, 2026 compared to 87.3% in the prior year primarily driven by improved underlying performance in the Government business and the absence of the premium deficiency reserve recorded in the prior year, partially offset by lower favorable prior-year development.Medical membership as of March 31, 2026 of 26.0 million decreased approximately 600 thousand members compared with December 31, 2025 reflecting the Company's exit of the individual exchange business in 2026, partially offset by an increase in Commercial ASC membership.Prior years' health care costs payable estimates developed favorably by $1.1 billion during the three months ended March 31, 2026.Days claims payable were 42.9 days as of March 31, 2026, an increase of 4.0 days compared to December 31, 2025.Health Services segmentThe Health Services segment provides a full range of pharmacy benefit management solutions, delivers health care services in its medical clinics, virtually, and in the home, and offers provider enablement solutions. The segment results for the three months ended March 31, 2026 and 2025 were as follows:
Three Months EndedMarch 31,In millions2026
2025
ChangeTotal revenues$  48,237
$  43,462
$    4,775Adjusted operating income (1)1,489
1,603
(114)Pharmacy claims processed (5) (6)464.7
464.2
0.5Total revenues increased 11.0% for the three months ended March 31, 2026 compared to the prior year primarily driven by pharmacy drug mix and brand inflation, partially offset by continued pharmacy client price improvements.Adjusted operating income decreased 7.1% for the three months ended March 31, 2026 compared to the prior year primarily driven by continued pharmacy client price improvements, partially offset by improved purchasing economics and pharmacy drug mix.Pharmacy claims processed remained relatively consistent on a 30-day equivalent basis for the three months ended March 31, 2026 compared to the prior year.Pharmacy & Consumer Wellness segmentThe Pharmacy & Consumer Wellness segment dispenses prescriptions in its retail pharmacies and through its infusion operations, provides ancillary pharmacy services including pharmacy patient care programs and vaccination administration, and sells a wide assortment of health and wellness products and general merchandise. The segment also provides pharmacy fulfillment services to support the Health Services segment's specialty and mail order pharmacy offerings. The segment results for the three months ended March 31, 2026 and 2025 were as follows:
Three Months EndedMarch 31,In millions2026
2025
ChangeTotal revenues$  31,989
$  31,912
$        77Adjusted operating income (1)1,197
1,313
(116)Prescriptions filled (5) (6)451.2
435.5
15.7Total revenues remained relatively consistent for the three months ended March 31, 2026 compared to the prior year primarily driven by pharmacy drug mix, increased prescription volume, including contributions from the Company's Rite Aid asset acquisitions which were completed during the third quarter of 2025, and brand inflation. These increases were largely offset by regulatory-related price reductions on certain drugs, the impact of recent generic drug introductions and pharmacy reimbursement pressure.Adjusted operating income decreased 8.8% for the three months ended March 31, 2026 compared to the prior year primarily driven by pharmacy reimbursement pressure, continued business investments, lower contributions from seasonal illnesses and greater weather disruption compared to the prior year. These decreases were partially offset by increased prescription volume and contributions from the Company's Rite Aid asset acquisitions.Prescriptions filled increased 3.6% on a 30-day equivalent basis for the three months ended March 31, 2026 compared to the prior year primarily driven by incremental volume resulting from the Company's Rite Aid prescription file acquisitions and increased utilization, partially offset by the absence of long-term care pharmacy prescription volume following the deconsolidation of Omnicare, LLC in September 2025.About CVS HealthCVS Health is a leading health solutions company simplifying health care one person, one family and one community at a time. As of March 31, 2026, the Company had approximately 9,000 retail pharmacy locations, more than 1,000 walk-in and primary care medical clinics and a leading pharmacy benefits manager with approximately 88 million plan members. The Company also serves an estimated more than 37 million people through a broad range of health insurance products and related services. The Company's integrated model uses personalized, technology driven services to connect people to simply better health, increasing access to quality care, delivering better outcomes, and lowering overall costs.Teleconference and WebcastThe Company will be holding a conference call today for investors at 8:00 a.m. (Eastern Time) to discuss its first quarter results. An audio webcast of the call will be broadcast simultaneously for all interested parties through the Investor Relations section of the CVS Health website at http://investors.cvshealth.com. This webcast will be archived and available on the website for a one-year period following the conference call.Non-GAAP Financial InformationThe Company presents both GAAP and non-GAAP financial measures in this press release to assist in the comparison of the Company's past financial performance with its current financial performance. See "Non-GAAP Financial Information" beginning on page 10 and endnotes beginning on page 19 for explanations of non-GAAP financial measures presented in this press release. See pages 12 through 13 and page 18 for reconciliations of each non-GAAP financial measure used in this release to the most directly comparable GAAP financial measure.Cautionary Statement Concerning Forward-looking StatementsThe Private Securities Litigation Reform Act of 1995 provides a safe harbor for forward-looking statements made by or on behalf of CVS Health Corporation. Statements in this press release that are forward-looking include, but are not limited to, the full-year 2026 guidance information, Mr. Joyner's quotation and the information included in the reconciliations and endnotes. By their nature, all forward-looking statements are not guarantees of future performance or results and are subject to risks and uncertainties that are difficult to predict and/or quantify. Actual results may differ materially from those contemplated by the forward-looking statements due to the risks and uncertainties described in our Securities and Exchange Commission ("SEC") filings, including those set forth in the Risk Factors section and under the heading "Cautionary Statement Concerning Forward-Looking Statements" in our most recently filed Annual Report on Form 10-K, our Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2026 and our Current Reports on Form 8-K.You are cautioned not to place undue reliance on CVS Health's forward-looking statements. CVS Health's forward-looking statements are and will be based upon management's then-current views and assumptions regarding future events and operating performance, and are applicable only as of the dates of such statements. CVS Health does not assume any duty to update or revise forward-looking statements, whether as a result of new information, future events, uncertainties or otherwise.- Tables Follow - CVS HEALTH CORPORATIONCondensed Consolidated Statements of Operations(Unaudited)

Three Months EndedMarch 31,In millions, except per share amounts2026
2025Revenues:

Products$     62,226
$     57,669Premiums33,791
32,820Services3,835
3,579Net investment income574
520Total revenues100,426
94,588Operating costs:

Cost of products sold55,444
51,057Health care costs29,358
29,135Operating expenses10,944
11,022Total operating costs95,746
91,214Operating income4,680
3,374Interest expense(774)
(785)Other income32
28Income before income tax provision3,938
2,617Income tax provision981
835Net income2,957
1,782Net income attributable to noncontrolling interests(14)
(3)Net income attributable to CVS Health$       2,943
$       1,779

Net income per share attributable to CVS Health:

Basic$        2.31
$        1.41Diluted$        2.30
$        1.41Weighted average shares outstanding:

Basic1,273
1,261Diluted1,279
1,264 CVS HEALTH CORPORATIONCondensed Consolidated Balance Sheets(Unaudited)
In millionsMarch 31,
2026
December 31,
2025Assets:

Cash and cash equivalents$           9,542
$           8,453Investments2,260
2,145Accounts receivable, net40,992
39,779Inventories17,770
19,246Other current assets4,253
5,091 Total current assets74,817
74,714Long-term investments32,407
32,669Property and equipment, net13,037
13,083Operating lease right-of-use assets14,741
14,973Goodwill85,478
85,478Intangible assets, net25,070
25,508Other assets7,424
7,113Total assets$        252,974
$        253,538

Liabilities:

Accounts payable$         16,922
$         17,641Pharmacy claims and discounts payable26,149
26,344Health care costs payable 15,518
15,399Accrued expenses and other current liabilities22,258
22,387Other insurance liabilities1,075
1,116Current portion of operating lease liabilities1,904
1,737Current portion of long-term debt2,580
4,068 Total current liabilities86,406
88,692Long-term operating lease liabilities13,330
13,643Long-term debt60,531
60,502Deferred income taxes3,771
3,832Other long-term insurance liabilities4,592
4,716Other long-term liabilities6,707
6,771Total liabilities175,337
178,156

Shareholders' equity:

Preferred stock—
—Common stock and capital surplus50,679
50,402Treasury stock(36,706)
(36,790)Retained earnings63,282
61,196Accumulated other comprehensive income201
406 Total CVS Health shareholders' equity77,456
75,214Noncontrolling interests181
168Total shareholders' equity77,637
75,382Total liabilities and shareholders' equity$        252,974
$        253,538 CVS HEALTH CORPORATIONCondensed Consolidated Statements of Cash Flows(Unaudited)

Three Months EndedMarch 31,In millions2026
2025Cash flows from operating activities:

Reconciliation of net income to net cash provided by operating activities:

Net income$        2,957
$        1,782Adjustments required to reconcile net income to net cash provided by operating activities:

Depreciation and amortization1,115
1,154 Stock-based compensation266
126 Loss on sale of subsidiary—
236 Deferred income taxes and other items(91)
(169) Change in operating assets and liabilities2
1,427Net cash provided by operating activities4,249
4,556

Cash flows from investing activities:

Proceeds from sales and maturities of investments4,159
3,534Purchases of investments(4,186)
(3,552)Purchases of property and equipment(849)
(743)Acquisitions(5)
(20)Other7
19Net cash used in investing activities(874)
(762)

Cash flows from financing activities:

Commercial paper borrowings (repayments), net—
(859)Repayments of long-term debt(1,518)
(743)Dividends paid(847)
(840)Proceeds from exercise of stock options103
144Payments for taxes related to net share settlement of equity awards(9)
(11)Other(47)
(23)Net cash used in financing activities(2,318)
(2,332)Net increase in cash, cash equivalents and restricted cash1,057
1,462Cash, cash equivalents and restricted cash at the beginning of the period8,712
8,884Cash, cash equivalents and restricted cash at the end of the period$        9,769
$      10,346Non-GAAP Financial InformationThe Company uses non-GAAP financial measures to analyze underlying business performance and trends. The Company believes that providing these non-GAAP financial measures enhances the Company's and investors' ability to compare the Company's past financial performance with its current and expected future performance. These non-GAAP financial measures, which are included in this press release and which may be referred to on the conference call discussing the Company's first quarter financial results, are provided as supplemental information to the financial measures presented in this press release and discussed on the conference call that are calculated and presented in accordance with GAAP. Non-GAAP financial measures should not be considered a substitute for, or superior to, financial measures determined or calculated in accordance with GAAP. The Company's definitions of its non-GAAP financial measures may not be comparable to similarly titled measures reported by other companies.Non-GAAP financial measures such as consolidated adjusted operating income, adjusted earnings per share ("EPS") and adjusted income attributable to CVS Health exclude from the relevant GAAP metrics, as applicable: amortization of intangible assets, net realized capital gains or losses and other items, if any, that neither relate to the ordinary course of the Company's business nor reflect the Company's underlying business performance.For the periods covered in this press release, the following items are excluded from the non-GAAP financial measures described above, as applicable, because the Company believes they neither relate to the ordinary course of the Company's business nor reflect the Company's underlying business performance:The Company's acquisition activities have resulted in the recognition of intangible assets as required under the acquisition method of accounting which consist primarily of trademarks, customer contracts/relationships, covenants not to compete, technology, provider networks and value of business acquired. Definite-lived intangible assets are amortized over their estimated useful lives and are tested for impairment when events indicate that the carrying value may not be recoverable. The amortization of intangible assets is reflected in operating expenses within each segment. Although intangible assets contribute to the Company's revenue generation, the amortization of intangible assets does not directly relate to the underwriting of the Company's insurance products, the services performed for the Company's customers or the sale of the Company's products or services. Additionally, intangible asset amortization expense typically fluctuates based on the size and timing of the Company's acquisition activity. Accordingly, the Company believes excluding the amortization of intangible assets enhances the Company's and investors' ability to compare the Company's past financial performance with its current performance and to analyze underlying business performance and trends. Intangible asset amortization excluded from the related non-GAAP financial measure represents the entire amount recorded within the Company's GAAP financial statements, and the revenue generated by the associated intangible assets has not been excluded from the related non-GAAP financial measure. Intangible asset amortization is excluded from the related non-GAAP financial measure because the amortization, unlike the related revenue, is not affected by operations of any particular period unless an intangible asset becomes impaired or the estimated useful life of an intangible asset is revised.The Company's net realized capital gains and losses arise from various types of transactions, primarily in the course of managing a portfolio of assets that support the payment of insurance liabilities. Net realized capital gains and losses are reflected in net investment income within each segment. These capital gains and losses are the result of investment decisions, market conditions and other economic developments that are unrelated to the performance of the Company's business, and the amount and timing of these capital gains and losses do not directly relate to the underwriting of the Company's insurance products, the services performed for the Company's customers or the sale of the Company's products or services. Accordingly, the Company believes excluding net realized capital gains and losses enhances the Company's and investors' ability to compare the Company's past financial performance with its current performance and to analyze underlying business performance and trends.During the three months ended March 31, 2026 and 2025, the acquisition-related integration costs relate to the acquisitions of Signify Health, Inc. and Oak Street Health, Inc. The acquisition-related integration costs are reflected in operating expenses within the Corporate/Other segment.During the three months ended March 31, 2025, the Company recorded a legacy litigation charge related to a court decision associated with its past business practices. The legacy litigation charge was reflected in operating expenses within the Pharmacy & Consumer Wellness segment.During the three months ended March 31, 2025, the loss on the wind down and sale of Accountable Care assets represents the pre-tax loss on the divestiture of the Company's Medicare Shared Savings Program ("MSSP") operations, as well as costs incurred in connection with the wind down of the Company's ACO REACH operations. The loss on Accountable Care assets was reflected in operating expenses within the Health Services segment.During the three months ended March 31, 2025, the office real estate optimization charges primarily relate to the abandonment of leased real estate and the related right-of-use assets and property and equipment in connection with the Company's evaluation of corporate office real estate space. The office real estate optimization charges were reflected in operating expenses within each segment.The corresponding tax benefit or expense related to the items excluded from adjusted income attributable to CVS Health and Adjusted EPS above. The nature of each non-GAAP adjustment is evaluated to determine whether a discrete adjustment should be made to the adjusted income tax provision.See endnotes (1) and (2) on page 19 for definitions of non-GAAP financial measures. Reconciliations of each non-GAAP financial measure to the most directly comparable GAAP financial measure are presented on pages 12 through 13 and page 18. Reconciliations of Non-GAAP Financial Measures to the Most Directly Comparable GAAP Financial Measures
Adjusted Operating Income(Unaudited)
The following are reconciliations of consolidated operating income (GAAP measure) to consolidated adjusted operating income, as well as reconciliations of segment GAAP operating income (loss) to segment adjusted operating income (loss):

Three Months Ended March 31, 2026In millionsHealth CareBenefits
HealthServices
Pharmacy &ConsumerWellness
Corporate/Other
ConsolidatedTotalsOperating income (loss) (GAAP measure)$       2,806
$     1,347
$        1,134
$      (607)
$        4,680Amortization of intangible assets236
142
63
1
442Net realized capital (gains) losses(1)
—
—
17
16Acquisition-related integration costs—
—
—
12
12Adjusted operating income (loss) (1)$       3,041
$     1,489
$        1,197
$      (577)
$        5,150

Three Months Ended March 31, 2025In millionsHealth
CareBenefits
HealthServices
Pharmacy &ConsumerWellness
Corporate/Other
ConsolidatedTotalsOperating income (loss) (GAAP measure)$       1,674
$     1,227
$          864
$      (391)
$        3,374Amortization of intangible assets294
144
60
1
499Net realized capital (gains) losses21
(15)
—
15
21Acquisition-related integration costs—
—
—
45
45Legacy litigation charge—
—
387
—
387Loss on Accountable Care assets—
247
—
—
247Office real estate optimization charges4
—
2
—
6Adjusted operating income (loss) (1)$       1,993
$     1,603
$        1,313
$      (330)
$        4,579 Adjusted Earnings Per Share(Unaudited)
The following are reconciliations of net income attributable to CVS Health to adjusted income attributable to CVS Health and calculations of GAAP diluted EPS and Adjusted EPS:

Three Months EndedMarch 31, 2026
Three Months EndedMarch 31, 2025In millions, except per share amountsTotal
Company
Per
Common
Share
Total
Company
Per
Common
ShareNet income attributable to CVS Health (GAAP measure)$     2,943
$       2.30
$     1,779
$       1.41Amortization of intangible assets442
0.35
499
0.39Net realized capital losses16
0.01
21
0.02Acquisition-related integration costs12
0.01
45
0.04Legacy litigation charge—
—
387
0.30Loss on Accountable Care assets—
—
247
0.19Office real estate optimization charges—
—
6
0.01Tax impact of non-GAAP adjustments(121)
(0.10)
(140)
(0.11)Adjusted income attributable to CVS Health (2)$     3,292
$       2.57
$     2,844
$       2.25

Weighted average diluted shares outstanding

1,279

1,264 Supplemental Information(Unaudited)
The following are reconciliations of financial measures of the Company's segments to the consolidated totals:
In millionsHealth Care Benefits
HealthServices
Pharmacy &ConsumerWellness
Corporate/Other
IntersegmentEliminations (a)
ConsolidatedTotalsThree Months Ended

March 31, 2026

Total revenues$    35,971
$  48,237
$        31,989
$       126
$       (15,897)
$    100,426Adjusted operating income (loss) (1)3,041
1,489
1,197
(577)
—
5,150March 31, 2025

Total revenues$    34,810
$  43,462
$        31,912
$       133
$       (15,729)
$      94,588Adjusted operating income (loss) (1)1,993
1,603
1,313
(330)
—
4,579
_____________________________________________(a)Intersegment revenue eliminations relate to intersegment revenue generating activities that occur between the Health Care Benefits segment, the Health Services segment, and/or the Pharmacy & Consumer Wellness segment. Supplemental Information(Unaudited)
Health Care Benefits segment
The following table summarizes the Health Care Benefits segment's performance for the respective periods:

Three Months EndedMarch 31,
ChangeIn millions, except percentages and basis points ("bps")2026
2025
$
%Revenues:

Premiums$ 33,792
$ 32,808
$    984
3.0 %Services1,717
1,615
102
6.3 %Net investment income462
387
75
19.4 % Total revenues35,971
34,810
1,161
3.3 %Health care costs28,579
28,637
(58)
(0.2) %MBR (Health care costs as a % of premium revenues) (3)84.6 %
87.3 %
(270)bpsOperating expenses$  4,586
$  4,499
$      87
1.9 %Operating expenses as a % of total revenues12.7 %
12.9 %

Operating income$  2,806
$  1,674
$  1,132
67.6 %Operating income as a % of total revenues7.8 %
4.8 %

Adjusted operating income (1)$  3,041
$  1,993
$  1,048
52.6 %Adjusted operating income as a % of total revenues8.5 %
5.7 %

Premium revenues (by business):

Government$ 27,783
$ 24,902
$  2,881
11.6 %Commercial6,009
7,906
(1,897)
(24.0) % The following table summarizes the Health Care Benefits segment's medical membership for the respective periods:

March 31, 2026
December 31, 2025
March 31, 2025In thousandsInsured
ASC
Total
Insured
ASC
Total
Insured
ASC
TotalMedical membership: (4)

Commercial2,462
15,872
18,334
3,447
15,350
18,797
3,961
15,250
19,211Medicare Advantage4,175
—
4,175
4,267
—
4,267
4,220
—
4,220Medicare Supplement1,192
—
1,192
1,202
—
1,202
1,253
—
1,253Medicaid1,938
366
2,304
1,952
373
2,325
1,983
412
2,395Total medical membership9,767
16,238
26,005
10,868
15,723
26,591
11,417
15,662
27,079

Supplemental membership information:

Medicare Prescription Drug Plan (stand-alone)3,889

4,041

4,094 The following table summarizes the Health Care Benefits segment's days claims payable for the respective periods:

March 31, 2026
December 31, 2025
March 31, 2025Days Claims Payable (7)42.9
38.9
43.2 Supplemental Information(Unaudited)
Health Services segment
The following table summarizes the Health Services segment's performance for the respective periods:

Three Months EndedMarch 31,
ChangeIn millions, except percentages2026
2025
$
%Revenues:

Products$ 45,726
$ 41,135
$   4,591
11.2 %Services2,511
2,313
198
8.6 %Net investment income—
14
(14)
(100.0) % Total revenues48,237
43,462
4,775
11.0 %Cost of products sold44,719
40,115
4,604
11.5 %Health care costs1,302
1,047
255
24.4 %Gross profit (8)2,216
2,300
(84)
(3.7) %Gross margin (Gross profit as a % of total revenues) (8)4.6 %
5.3 %

Operating expenses$    869
$  1,073
$    (204)
(19.0) %Operating expenses as a % of total revenues1.8 %
2.5 %

Operating income$  1,347
$  1,227
$     120
9.8 %Operating income as a % of total revenues2.8 %
2.8 %

Adjusted operating income (1)$  1,489
$  1,603
$    (114)
(7.1) %Adjusted operating income as a % of total revenues3.1 %
3.7 %

Pharmacy claims processed (5) (6)464.7
464.2
0.5
0.1 % Supplemental Information(Unaudited)
Pharmacy & Consumer Wellness segment
The following table summarizes the Pharmacy & Consumer Wellness segment's performance for the respective periods:

Three Months EndedMarch 31,
ChangeIn millions, except percentages2026
2025
$
%Revenues:

Products$ 31,339
$ 31,285
$      54
0.2 %Services650
627
23
3.7 %Total revenues31,989
31,912
77
0.2 %Cost of products sold25,790
25,804
(14)
(0.1) %Gross profit (8)6,199
6,108
91
1.5 %Gross margin (Gross profit as a % of total revenues) (8)19.4 %
19.1 %

Operating expenses $ 5,065
$  5,244
$    (179)
(3.4) %Operating expenses as a % of total revenues15.8 %
16.4 %

Operating income$ 1,134
$    864
$     270
31.3 %Operating income as a % of total revenues3.5 %
2.7 %

Adjusted operating income (1)$ 1,197
$  1,313
$    (116)
(8.8) %Adjusted operating income as a % of total revenues3.7 %
4.1 %

Revenues (by major goods/service lines):

Pharmacy$ 26,123
$ 26,076
$      47
0.2 %Front Store 5,259
5,243
16
0.3 %Other607
593
14
2.4 %Prescriptions filled (5) (6)451.2
435.5
15.7
3.6 %Same store sales increase (decrease): (9)

Total2.8 %
14.2 %

Pharmacy3.1 %
17.7 %

Front Store1.2 %
(0.3) %

Prescription volume (6)6.8 %
6.7 %

Adjusted Earnings Per Share Guidance(Unaudited)
The following reconciliations of projected net income attributable to CVS Health to projected adjusted income attributable to CVS Health and calculations of projected GAAP diluted EPS and projected Adjusted EPS contain forward-looking information. All forward-looking information involves risks and uncertainties. Actual results may differ materially from those contemplated by the forward-looking information for a number of reasons as described in our SEC filings, including those set forth in the Risk Factors section and under the heading "Cautionary Statement Concerning Forward-Looking Statements" in our most recently filed Annual Report on Form 10-K and our most recently filed Quarterly Report on Form 10-Q. See "Non-GAAP Financial Information" earlier in this press release and endnote (2) later in this press release for more information on how we calculate Adjusted EPS.

Year Ending December 31, 2026
Low
HighIn millions, except per share amountsTotal
Company
Per
Common
Share
Total
Company
Per
Common
ShareNet income attributable to CVS Health (GAAP measure)$     8,032
$       6.24
$     8,288
$       6.44Non-GAAP adjustments:

Amortization of intangible assets1,730
1.35
1,730
1.35Net realized capital losses16
0.01
16
0.01Acquisition-related integration costs80
0.06
80
0.06Tax impact of non-GAAP adjustments(470)
(0.36)
(470)
(0.36)Adjusted income attributable to CVS Health (2)$     9,388
$       7.30
$     9,644
$       7.50

Weighted average diluted shares outstanding

1,286

1,286Endnotes(1) The Company defines adjusted operating income as operating income (GAAP measure) excluding the impact of amortization of intangible assets, net realized capital gains or losses and other items, if any, that neither relate to the ordinary course of the Company's business nor reflect the Company's underlying business performance, such as acquisition-related integration costs, certain legacy litigation charges, losses on Accountable Care assets and office real estate optimization charges. The chief operating decision maker (the "CODM") uses adjusted operating income as its principal measure of segment performance as it enhances the CODM's ability to compare past financial performance with current performance and analyze underlying business performance and trends. The consolidated measure is not determined in accordance with GAAP and should not be considered a substitute for, or superior to, the most directly comparable GAAP measure, consolidated operating income. See "Non-GAAP Financial Information" earlier in this press release for additional information regarding the items excluded from consolidated operating income in determining consolidated adjusted operating income.(2) GAAP diluted earnings per share and Adjusted EPS, respectively, are calculated by dividing net income attributable to CVS Health and adjusted income attributable to CVS Health by the Company's weighted average diluted shares outstanding. The Company defines adjusted income attributable to CVS Health as net income attributable to CVS Health (GAAP measure) excluding the impact of amortization of intangible assets, net realized capital gains or losses and other items, if any, that neither relate to the ordinary course of the Company's business nor reflect the Company's underlying business performance, such as acquisition-related integration costs, certain legacy litigation charges, losses on Accountable Care assets, office real estate optimization charges, as well as the corresponding income tax benefit or expense related to the items excluded from adjusted income attributable to CVS Health. See "Non-GAAP Financial Information" earlier in this press release for additional information regarding the items excluded from net income attributable to CVS Health in determining adjusted income attributable to CVS Health.(3) Medical benefit ratio is calculated by dividing the Health Care Benefits segment's health care costs by premium revenues and represents the percentage of premium revenues spent on medical benefits for the segment's insured members. Management uses MBR to assess the underlying business performance and underwriting of its insurance products, understand variances between actual results and expected results and identify trends in period-over-period results. MBR provides management and investors with information useful in assessing the operating results of the Health Care Benefits segment's insured products.(4) Medical membership represents the number of members covered by the Health Care Benefits segment's insured and ASC medical products and related services at a specified point in time. Management uses this metric to understand variances between actual medical membership and expected amounts as well as trends in period-over-period results. This metric provides management and investors with information useful in understanding the impact of medical membership on the Health Care Benefits segment's total revenues and operating results.(5) Pharmacy claims processed represents the number of prescription claims processed through the Company's pharmacy benefits manager and dispensed by either its retail network pharmacies or the Company's mail and specialty pharmacies. Prescriptions filled represents the number of prescriptions dispensed through the Pharmacy & Consumer Wellness segment's retail pharmacies and infusion services operations, as well as through the Omnicare long-term care pharmacies prior to their deconsolidation in September 2025. Management uses these metrics to understand variances between actual claims processed and prescriptions dispensed, respectively, and expected amounts as well as trends in period-over-period results. These metrics provide management and investors with information useful in understanding the impact of pharmacy claim volume and prescription volume, respectively, on segment total revenues and operating results.(6) Includes an adjustment to convert 90-day prescriptions to the equivalent of three 30-day prescriptions. This adjustment reflects the fact that these prescriptions include approximately three times the amount of product days supplied compared to a normal prescription.(7) Days claims payable is calculated by dividing the Health Care Benefits segment's health care costs payable at the end of each quarter by its average health care costs per day during such quarter. Management and investors use this metric as one of the indicators of the adequacy of the health care costs payable liability at the end of each quarter.(8) Gross profit is calculated as the segment's total revenues less its cost of products sold, and, for the Health Services segment, health care costs. Gross margin is calculated by dividing the segment's gross profit by its total revenues and represents the percentage of total revenues that remains after incurring direct costs associated with the segment's products sold and services provided. Gross margin provides investors with information that may be useful in assessing the operating results of the Company's Health Services and Pharmacy & Consumer Wellness segments.(9) Same store sales and prescription volume represent the change in revenues and prescriptions filled in the Company's retail pharmacy stores that have been operating for greater than one year and digital sales initiated online or through mobile applications and fulfilled through the Company's distribution centers, expressed as a percentage that indicates the increase or decrease relative to the comparable prior period. Same store metrics exclude revenues and prescriptions from infusion services operations and long-term care pharmacies. Management uses these metrics to evaluate the performance of existing stores on a comparable basis and to inform future decisions regarding existing stores and new locations. Same-store metrics provide management and investors with information useful in understanding the portion of current revenues and prescriptions resulting from organic growth in existing locations versus the portion resulting from opening new stores. View original content to download multimedia:https://www.prnewswire.com/news-releases/cvs-health-corporation-reports-strong-first-quarter-2026-results-and-raises-full-year-2026-guidance-302763294.htmlSOURCE CVS Health Original: CVS HEALTH CORPORATION REPORTS STRONG FIRST QUARTER 2026 RESULTS AND RAISES FULL-YEAR 2026 GUIDANCE

CVS HEALTH CORPORATION REPORTS FOURTH QUARTER AND FULL-YEAR 2025 RESULTSFebruary 10, 2026 6:30 AM
PR Newswire (US)

Fourth Quarter HighlightsTotal revenues increased to $105.7 billion, up 8.2% compared to prior yearGAAP diluted EPS of $2.30 and Adjusted EPS of $1.09Full-Year HighlightsTotal revenues increased to a record high $402.1 billion, up 7.8% compared to prior yearGAAP diluted EPS of $1.39 and Adjusted EPS of $6.75Generated cash flow from operations of $10.6 billionOperational HighlightsCVS Pharmacy® successfully completed the transition to cost-based reimbursement across its Commercial, Third-Party Discount, Medicare and Medicaid businesses.Aetna® continues to improve the experience for health care professionals and their patients, approving more than 95% of all eligible prior authorizations within 24 hours, with many completed instantaneously.Caremark® closes out 2025 with significant customer wins and strong retention, providing momentum into 2026.2026 Full-Year GuidanceConfirmed GAAP diluted EPS guidance range of $5.94 to $6.14Confirmed Adjusted EPS guidance range of $7.00 to $7.20Updated cash flow from operations guidance to at least $9.0 billion from at least $10.0 billionCEO Commentary
"Our fourth quarter and full-year results demonstrate the progress we are making in transforming the health care experience with our unique collection of businesses. From lowering drug prices, to improving navigation of health care, to being the front door of care across our country, we are well positioned to achieve our ambition to be the most trusted health care company in America."- David Joyner, CVS Health President and CEOWOONSOCKET, R.I., Feb. 10, 2026 /PRNewswire/ -- CVS Health Corporation (NYSE: CVS) today announced operating results for the three months and year ended December 31, 2025.Financial Results Summary
Three Months Ended December 31,In millions, except per share amounts2025
2024
ChangeTotal revenues $ 105,693
$    97,710
$      7,983Operating income2,112
2,368
(256)Adjusted operating income (1)2,597
2,728
(131)Diluted earnings per share$        2.30
$        1.30
$        1.00Adjusted EPS (2)$        1.09
$        1.19
$      (0.10)Fourth quarter GAAP diluted EPS of $2.30 increased from $1.30 in the prior year. Adjusted EPS of $1.09 decreased from $1.19 in the prior year, primarily due to a decline in adjusted operating income in the Health Care Benefits segment, reflecting changes in the seasonality of the Medicare Part D program due to the impact of the Inflation Reduction Act ("IRA").Consolidated fourth quarter and full-year results
Three Months Ended
December 31,
Year Ended December 31,In millions, except per share amounts2025
2024
Change
2025
2024
ChangeTotal revenues $ 105,693
$ 97,710
$    7,983
$ 402,067
$ 372,809
$ 29,258Operating income2,112
2,368
(256)
4,660
8,516
(3,856)Adjusted operating income (1)2,597
2,728
(131)
14,443
11,976
2,467Net income2,923
1,623
1,300
1,728
4,586
(2,858)Diluted earnings per share $      2.30
$      1.30
$      1.00
$      1.39
$      3.66
$     (2.27)Adjusted EPS (2)$      1.09
$      1.19
$     (0.10)
$      6.75
$      5.42
$      1.33For the three months and year ended December 31, 2025 compared to the prior year:Total revenues increased 8.2% in the three months ended December 31, 2025 and increased 7.8% in the year ended December 31, 2025 driven by growth across all operating segments.Operating income decreased 10.8% in the three months ended December 31, 2025 primarily due to a decrease in adjusted operating income and a decline in net realized capital gains compared to the prior year.Operating income decreased 45.3% for the year ended December 31, 2025 primarily due to a $5.7 billion goodwill impairment charge related to the Health Care Delivery reporting unit and approximately $1.2 billion of legacy litigation charges, both recorded during the year ended December 31, 2025. These decreases were partially offset by an increase in adjusted operating income and the absence of approximately $1.2 billion of restructuring charges recorded in the prior year.Adjusted operating income decreased 4.8% in the three months ended December 31, 2025 and increased 20.6% in the year ended December 31, 2025. See pages 3 through 5 for a discussion of the adjusted operating income performance of the Company's segments.Interest expense increased $29 million, or 3.8%, and $161 million, or 5.4%, respectively, primarily as a result of long-term debt issuances in December 2024 and August 2025.The Company recorded an income tax benefit at an effective income tax rate of (115.9)% in the fourth quarter of 2025, compared to income tax expense at an effective income tax rate of 23.7% in the prior year. The change was due to a worthless stock deduction associated with a subsidiary that filed for bankruptcy in 2025.The effective income tax rate for the full year decreased to 19.1% compared to 25.4% in the prior year due to the worthless stock deduction described above, partially offset by the impact of the goodwill impairment charge and the legacy litigation charges recorded during 2025, both of which were not deductible for income tax purposes.Health Care Benefits segmentThe Health Care Benefits segment offers a full range of insured and self-insured ("ASC") medical, pharmacy, dental and behavioral health products and services. The segment results for the three months and years ended December 31, 2025 and 2024 were as follows:
Three Months Ended December 31,
Year Ended December 31,In millions, except percentages2025
2024
Change
2025
2024
ChangeTotal revenues$   36,293
$   32,958
$     3,335
$ 143,354
$ 130,665
$ 12,689Adjusted operating income (loss) (1)(676)
(439)
(237)
2,939
307
2,632Medical benefit ratio ("MBR") (3)94.8 %
94.8 %
— %
91.2 %
92.5 %
(1.3) %Medical membership (4)

26.6
27.1
(0.5)Total revenues increased 10.1% and 9.7% for the three months and year ended December 31, 2025, respectively, compared to the prior year primarily driven by increases in the Government business, largely due to the impact of the IRA on the Medicare Part D program.Adjusted operating loss increased $237 million for the three months ended December 31, 2025 compared to the prior year primarily driven by changes in the seasonality of the Medicare Part D program due to the impact of the IRA and the unfavorable year-over-year impact of premium deficiency reserves, partially offset by improved underlying performance in the Government business.Adjusted operating income increased $2.6 billion for the year ended December 31, 2025 compared to the prior year primarily driven by improved underlying performance in the Government business and higher favorable prior year development.The MBR of 94.8% in the three months ended December 31, 2025 remained consistent with the prior year as improved underlying performance in the Government business was offset by changes in the seasonality of the Medicare Part D program due to the impact of the IRA.The MBR decreased to 91.2% in the year ended December 31, 2025 compared to 92.5% in the prior year primarily driven by improved underlying performance in the Government business and higher favorable prior year development.Medical membership as of December 31, 2025 of 26.6 million decreased 112,000 members compared with September 30, 2025 reflecting declines in the individual exchange product line, partially offset by an increase in Commercial ASC membership. Medical membership as of December 31, 2025 decreased 504,000 members compared with December 31, 2024, reflecting declines in the individual exchange and Government product lines, partially offset by an increase in Commercial ASC membership.Prior years' health care costs payable estimates developed favorably by $2.0 billion during the year ended December 31, 2025. This development is reported on a basis consistent with the prior years' development reported in the health care costs payable table in the Company's annual audited financial statements and does not directly correspond to an increase in 2025 operating results.Days claims payable were 38.9 days as of December 31, 2025, a decrease of 3.6 days compared to September 30, 2025.See the supplemental information on page 18 for additional information regarding the performance of the Health Care Benefits segment.Health Services segmentThe Health Services segment provides a full range of pharmacy benefit management ("PBM") solutions, delivers health care services in its medical clinics, virtually, and in the home, and offers provider enablement solutions. The segment results for the three months and years ended December 31, 2025 and 2024 were as follows:
Three Months Ended December 31,
Year Ended December 31,In millions2025
2024
Change
2025
2024
ChangeTotal revenues$ 51,244
$ 47,020
$    4,224
$ 190,425
$ 173,605
$   16,820Adjusted operating income (1)1,923
1,761
162
7,151
7,243
(92)Pharmacy claims processed (5) (6)491.9
499.4
(7.5)
1,900.7
1,917.6
(16.9)Total revenues increased 9.0% and 9.7% for the three months and year ended December 31, 2025, respectively, compared to the prior year primarily driven by pharmacy drug mix and brand inflation, partially offset by continued pharmacy client price improvements.Adjusted operating income increased 9.2% for the three months ended December 31, 2025 compared to the prior year primarily driven by improved purchasing economics, partially offset by continued pharmacy client price improvements.Adjusted operating income decreased 1.3% for the year ended December 31, 2025 compared to the prior year primarily driven by continued pharmacy client price improvements and the impact of a higher medical benefit ratio in the Company's health care delivery business, partially offset by improved purchasing economics and pharmacy drug mix.Pharmacy claims processed decreased 1.5% and 0.9% on a 30-day equivalent basis for the three months and year ended December 31, 2025, respectively, compared to the prior year.See the supplemental information on page 19 for additional information regarding the performance of the Health Services segment.Pharmacy & Consumer Wellness segmentThe Pharmacy & Consumer Wellness segment dispenses prescriptions in its retail pharmacies 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. The segment also provides pharmacy fulfillment services to support the Health Services segment's specialty and mail order pharmacy offerings. The segment results for the three months and years ended December 31, 2025 and 2024 were as follows:
Three Months Ended December 31,
Year Ended December 31,In millions2025
2024
Change
2025
2024
ChangeTotal revenues$ 37,660
$ 33,514
$    4,146
$ 139,367
$ 124,500
$     14,867Adjusted operating income (1)1,911
1,758
153
6,040
5,774
266Prescriptions filled (5) (6)473.8
445.9
27.9
1,808.8
1,715.5
93.3Total revenues increased 12.4% and 11.9% for the three months and year ended December 31, 2025, respectively, compared to the prior year primarily driven by pharmacy drug mix and increased prescription volume, including incremental volume resulting from the Company's Rite Aid prescription file acquisitions, partially offset by continued pharmacy reimbursement pressure and the impact of recent generic drug introductions.Adjusted operating income increased 8.7% and 4.6% for the three months and year ended December 31, 2025, respectively, compared to the prior year primarily driven by increased prescription volume, including incremental volume resulting from the Company's Rite Aid prescription file acquisitions, as well as favorable drug mix, partially offset by continued pharmacy reimbursement pressure and increased investments in the segment's colleagues and capabilities.Prescriptions filled increased 6.3% and 5.4% on a 30-day equivalent basis for the three months and year ended December 31, 2025, respectively, compared to the prior year primarily driven by increased utilization and incremental volume resulting from the Company's Rite Aid prescription file acquisitions.Same store prescription volume(6)(11) increased 9.7% and 8.0% on a 30-day equivalent basis for the three months and year ended December 31, 2025, respectively, compared to the prior year.See the supplemental information on page 20 for additional information regarding the performance of the Pharmacy & Consumer Wellness segment.Teleconference and webcastThe Company will be holding a conference call today for investors at 8:00 a.m. (Eastern Time) to discuss its fourth quarter and full-year results. An audio webcast of the call will be broadcast simultaneously for all interested parties through the Investor Relations section of the CVS Health website at http://investors.cvshealth.com. This webcast will be archived and available on the website for a one-year period following the conference call.Non-GAAP Financial InformationThe Company presents both GAAP and non-GAAP financial measures in this press release to assist in the comparison of the Company's past financial performance with its current financial performance. See "Non-GAAP Financial Information" beginning on page 11 and endnotes beginning on page 24 for explanations of non-GAAP financial measures presented in this press release. See pages 14 through 16 and page 23 for reconciliations of each non-GAAP financial measure used in this release to the most directly comparable GAAP financial measure.About CVS HealthCVS Health is a leading health solutions company building a world of health around every consumer, wherever they are. As of December 31, 2025, the Company had approximately 9,000 retail pharmacy locations, more than 1,000 walk-in and primary care medical clinics and a leading pharmacy benefits manager with approximately 87 million plan members. The Company also serves an estimated more than 37 million people through traditional, voluntary and consumer-directed health insurance products and related services, including highly rated Medicare Advantage offerings and a leading standalone Medicare Part D prescription drug plan. The Company's integrated model uses personalized, technology driven services to connect people to simply better health, increasing access to quality care, delivering better outcomes, and lowering overall costs.Cautionary statement concerning forward-looking statementsThe Private Securities Litigation Reform Act of 1995 provides a safe harbor for forward-looking statements made by or on behalf of CVS Health Corporation. Statements in this press release that are forward-looking include, but are not limited to, the information under the headings "2026 Full-Year Guidance", "CEO Commentary" and "Financial Results Summary" and the information included in the reconciliations and endnotes. By their nature, all forward-looking statements are not guarantees of future performance or results and are subject to risks and uncertainties that are difficult to predict and/or quantify. Actual results may differ materially from those contemplated by the forward-looking statements due to the risks and uncertainties described in our Securities and Exchange Commission ("SEC") filings, including those set forth in the Risk Factors section and under the heading "Cautionary Statement Concerning Forward-Looking Statements" in our most recently filed Annual Report on Form 10-K, our Quarterly Reports on Form 10-Q for the quarterly periods ended March 31, 2025, June 30, 2025 and September 30, 2025 and our Current Reports on Form 8-K.You are cautioned not to place undue reliance on CVS Health's forward-looking statements. CVS Health's forward-looking statements are and will be based upon management's then-current views and assumptions regarding future events and operating performance, and are applicable only as of the dates of such statements. CVS Health does not assume any duty to update or revise forward-looking statements, whether as a result of new information, future events, uncertainties or otherwise. - Tables Follow - CVS HEALTH CORPORATIONCondensed Consolidated Statements of Operations(Unaudited)

Three Months Ended December 31,
Year Ended December 31,In millions, except per share amounts2025
2024
2025
2024Revenues:

Products$    67,042
$    61,911
$ 249,908
$ 231,521Premiums34,017
30,913
134,751
122,896Services4,040
4,131
15,175
16,239Net investment income594
755
2,233
2,153Total revenues105,693
97,710
402,067
372,809Operating costs:

Cost of products sold59,060
55,268
221,167
206,287Health care costs33,066
29,543
125,538
115,121Operating expenses11,455
10,521
44,977
41,706Goodwill impairment—
—
5,725
—Restructuring charges—
10
—
1,179Total operating costs103,581
95,342
397,407
364,293Operating income2,112
2,368
4,660
8,516Interest expense(787)
(758)
(3,119)
(2,958)Gain on early extinguishment of debt—
491
—
491Gain on deconsolidation of subsidiary—
—
483
—Other income29
25
112
99Income before income tax provision1,354
2,126
2,136
6,148Income tax provision (benefit)(1,569)
503
408
1,562Net income2,923
1,623
1,728
4,586Net loss attributable to noncontrolling interests20
21
40
28Net income attributable to CVS Health$      2,943
$      1,644
$      1,768
$      4,614

Net income per share attributable to CVS Health:

Basic$       2.32
$       1.31
$       1.40
$       3.67Diluted$       2.30
$       1.30
$       1.39
$       3.66Weighted average shares outstanding:

Basic 1,270
1,259
1,267
1,259Diluted1,277
1,261
1,271
1,262 CVS HEALTH CORPORATIONCondensed Consolidated Balance Sheets(Unaudited)

At December 31,In millions2025
2024Assets:

Cash and cash equivalents$         8,453
$         8,586Investments2,145
2,407Accounts receivable, net39,779
36,469Inventories19,246
18,107Other current assets5,091
3,076 Total current assets74,714
68,645Long-term investments32,669
28,934Property and equipment, net13,083
12,993Operating lease right-of-use assets14,973
15,944Goodwill85,478
91,272Intangible assets, net25,508
27,323Separate accounts assets1,994
3,311Other assets5,119
4,793Total assets$      253,538
$      253,215

Liabilities:

Accounts payable$       17,641
$       15,892Pharmacy claims and discounts payable26,344
24,166Health care costs payable 15,399
15,064Accrued expenses and other current liabilities22,387
20,810Other insurance liabilities1,116
1,183Current portion of operating lease liabilities1,737
1,751Short-term debt—
2,119Current portion of long-term debt4,068
3,624 Total current liabilities88,692
84,609Long-term operating lease liabilities13,643
14,899Long-term debt60,502
60,527Deferred income taxes3,832
3,806Separate accounts liabilities1,994
3,311Other long-term insurance liabilities4,716
4,902Other long-term liabilities4,777
5,431Total liabilities178,156
177,485

Shareholders' equity:

Preferred stock—
—Common stock and capital surplus50,402
49,661Treasury stock(36,790)
(36,818)Retained earnings61,196
62,837Accumulated other comprehensive income (loss)406
(120) Total CVS Health shareholders' equity75,214
75,560Noncontrolling interests168
170Total shareholders' equity75,382
75,730Total liabilities and shareholders' equity$      253,538
$      253,215 CVS HEALTH CORPORATIONCondensed Consolidated Statements of Cash Flows(Unaudited)

Year Ended December 31,In millions2025
2024Cash flows from operating activities:

Cash receipts from customers$      389,128
$      357,995Cash paid for inventory, prescriptions dispensed and health services rendered(216,493)
(197,726)Insurance benefits paid (121,238)
(109,464)Cash paid to other suppliers and employees(37,570)
(38,821)Interest and investment income received1,969
1,735Interest paid(2,991)
(2,909)Income taxes paid(2,166)
(1,703)Net cash provided by operating activities10,639
9,107

Cash flows from investing activities:

Proceeds from sales and maturities of investments12,383
10,353Purchases of investments(15,012)
(15,191)Purchases of property and equipment(2,832)
(2,781)Acquisitions (net of cash and restricted cash acquired)(436)
(95)Other26
101Net cash used in investing activities(5,871)
(7,613)

Cash flows from financing activities:

Commercial paper borrowings (repayments), net(2,119)
1,919Proceeds from issuance of long-term debt3,969
7,913Repayments of long-term debt(3,629)
(4,773)Repurchase of common stock—
(3,023)Dividends paid(3,397)
(3,373)Proceeds from exercise of stock options394
361Payments for taxes related to net share settlement of equity awards(158)
(185)Other—
26Net cash used in financing activities(4,940)
(1,135)Net increase (decrease) in cash, cash equivalents and restricted cash(172)
359Cash, cash equivalents and restricted cash at the beginning of the period8,884
8,525Cash, cash equivalents and restricted cash at the end of the period$         8,712
$         8,884 CVS HEALTH CORPORATIONCondensed Consolidated Statements of Cash Flows(Unaudited)

Year Ended December 31,In millions2025
2024Reconciliation of net income to net cash provided by operating activities:

Net income$         1,728
$         4,586Adjustments required to reconcile net income to net cash provided by operating activities:

Depreciation and amortization4,606
4,597 Goodwill impairment5,725
— Stock-based compensation535
540 Loss on sale of subsidiary236
— Gain on early extinguishment of debt—
(491) Gain on deconsolidation of subsidiary(483)
— Restructuring charges (impairment of long-lived assets)—
840 Deferred income taxes102
(572) Other items(336)
(502) Change in operating assets and liabilities, net of effects from acquisitions:

Accounts receivable, net(3,498)
(1,301)Inventories(1,267)
(102)Other assets(2,593)
(38)Accounts payable and pharmacy claims and discounts payable3,855
2,335Health care costs payable and other insurance liabilities16
2,757Other liabilities2,013
(3,542)Net cash provided by operating activities$       10,639
$         9,107Non-GAAP Financial InformationThe Company uses non-GAAP financial measures to analyze underlying business performance and trends. The Company believes that providing these non-GAAP financial measures enhances the Company's and investors' ability to compare the Company's past financial performance with its current and expected future performance. These non-GAAP financial measures, which are included in this press release and which may be referred to on the conference call discussing the Company's fourth quarter and full-year 2025 financial results, are provided as supplemental information to the financial measures presented in this press release and discussed on the conference call that are calculated and presented in accordance with GAAP. Non-GAAP financial measures should not be considered a substitute for, or superior to, financial measures determined or calculated in accordance with GAAP. The Company's definitions of its non-GAAP financial measures may not be comparable to similarly titled measures reported by other companies.Non-GAAP financial measures such as consolidated adjusted operating income, adjusted earnings per share ("EPS") and adjusted income attributable to CVS Health exclude from the relevant GAAP metrics, as applicable: amortization of intangible assets, net realized capital gains or losses and other items, if any, that neither relate to the ordinary course of the Company's business nor reflect the Company's underlying business performance.For the periods covered in this press release, the following items are excluded from the non-GAAP financial measures described above, as applicable, because the Company believes they neither relate to the ordinary course of the Company's business nor reflect the Company's underlying business performance:The Company's acquisition activities have resulted in the recognition of intangible assets as required under the acquisition method of accounting which consist primarily of trademarks, customer contracts/relationships, covenants not to compete, technology, provider networks and value of business acquired. Definite-lived intangible assets are amortized over their estimated useful lives and are tested for impairment when events indicate that the carrying value may not be recoverable. The amortization of intangible assets is reflected in operating expenses within each segment. Although intangible assets contribute to the Company's revenue generation, the amortization of intangible assets does not directly relate to the underwriting of the Company's insurance products, the services performed for the Company's customers or the sale of the Company's products or services. Additionally, intangible asset amortization expense typically fluctuates based on the size and timing of the Company's acquisition activity. Accordingly, the Company believes excluding the amortization of intangible assets enhances the Company's and investors' ability to compare the Company's past financial performance with its current performance and to analyze underlying business performance and trends. Intangible asset amortization excluded from the related non-GAAP financial measure represents the entire amount recorded within the Company's GAAP financial statements, and the revenue generated by the associated intangible assets has not been excluded from the related non-GAAP financial measure. Intangible asset amortization is excluded from the related non-GAAP financial measure because the amortization, unlike the related revenue, is not affected by operations of any particular period unless an intangible asset becomes impaired or the estimated useful life of an intangible asset is revised.The Company's net realized capital gains and losses arise from various types of transactions, primarily in the course of managing a portfolio of assets that support the payment of insurance liabilities. Net realized capital gains and losses are reflected in net investment income (loss) within each segment. These capital gains and losses are the result of investment decisions, market conditions and other economic developments that are unrelated to the performance of the Company's business, and the amount and timing of these capital gains and losses do not directly relate to the underwriting of the Company's insurance products, the services performed for the Company's customers or the sale of the Company's products or services. Accordingly, the Company believes excluding net realized capital gains and losses enhances the Company's and investors' ability to compare the Company's past financial performance with its current performance and to analyze underlying business performance and trends.During the three months and year ended December 31, 2025 and 2024, the acquisition-related integration costs relate to the acquisitions of Signify Health, Inc. and Oak Street Health, Inc. The acquisition-related integration costs are reflected in operating expenses within the Corporate/Other segment.During the year ended December 31, 2025, the goodwill impairment charge relates to the Health Care Delivery reporting unit within the Health Services segment.During the year ended December 31, 2025, the Health Care Delivery clinic closure charge primarily relates to the write down of long-lived assets in connection with the planned closure of certain existing Oak Street Health clinics in 2026, as well as associated severance and employee-related costs expected to be incurred. The Health Care Delivery clinic closure charge is reflected in operating expenses within the Health Services segment.During the years ended December 31, 2025 and 2024, the opioid litigation charges relate to changes in the Company's accrual related to ongoing opioid litigation matters.During the year ended December 31, 2025 and the three months and year ended December 31, 2024, the office real estate optimization charges primarily relate to the abandonment of leased real estate and the related right-of-use assets and property and equipment in connection with the Company's evaluation of corporate office real estate space in response to its ongoing flexible work arrangement. The office real estate optimization charges are reflected in operating expenses within each segment.During the year ended December 31, 2025, the Company recorded legacy litigation charges related to two court decisions associated with its past business practices.
In April 2025, a jury found Omnicare, LLC ("Omnicare") and CVS Health Corporation liable in connection with alleged violations of the federal False Claims Act related to dispensing practices by Omnicare from 2010, prior to its acquisition by the Company in 2015, through 2018. Damages were found only with respect to Omnicare. Accordingly, the Company recorded a litigation charge of $387 million during the first quarter of 2025. During the second quarter of 2025, the Company recorded a charge of $542 million, reflecting penalties assessed under the False Claims Act. These litigation charges are reflected in operating expenses within the Pharmacy & Consumer Wellness segment.
In June 2025, a court found certain subsidiaries of CVS Health Corporation liable for damages in connection with a complaint filed in February 2014, in which the government declined to intervene, related to PBM direct and indirect remuneration reporting practices for two clients from 2010 through 2016, which the Company has since modified. In connection with this court decision, the Company recorded a litigation charge of $291 million during the second quarter of 2025. This litigation charge is reflected in operating expenses within the Health Services segment.During the year ended December 31, 2025, the loss on the wind down and sale of Accountable Care assets represents the pre-tax loss on the divestiture of the Company's Medicare Shared Savings Program ("MSSP") operations, which the Company sold in March 2025, as well as costs incurred in connection with the process of winding down the Company's Accountable Care Organization Realizing Equity, Access and Community Health ("ACO REACH") operations. The loss on Accountable Care assets is reflected in operating expenses within the Health Services segment.During the three months ended December 31, 2024, the restructuring charges are primarily comprised of a stock-based compensation charge. During the year ended December 31, 2024, the restructuring charges also include a store impairment charge, corporate workforce optimization costs, including severance and employee-related costs, and other asset impairment and related charges associated with the discontinuation of certain non-core assets. During the third quarter of 2024, the Company finalized an enterprise-wide restructuring plan intended to streamline and simplify the organization, improve efficiency and reduce costs. In connection with this restructuring plan, the Company completed a strategic review of its retail business and determined that it planned to close additional retail stores in 2025, and, accordingly, it recorded a store impairment charge to write down the associated lease right-of-use assets and property and equipment. In addition, during the third quarter of 2024, the Company also conducted a review of its various strategic assets and determined that it would discontinue the use of certain non-core assets, at which time impairment losses were recorded to write down the carrying value of these assets to the Company's best estimate of their fair value. The restructuring charges associated with the store impairments are reflected within the Pharmacy & Consumer Wellness segment, other asset impairments and related charges are reflected within the Corporate/Other and Pharmacy & Consumer Wellness segments and corporate workforce optimization costs, including severance and employee-related costs, as well as the stock-based compensation charge, are reflected within the Corporate/Other segment.During the three months and year ended December 31, 2024, the gain on early extinguishment of debt relates to the Company's repayment of approximately $2.6 billion of its outstanding senior notes in December 2024, pursuant to its tender offer for such senior notes.During the year ended December 31, 2025, the gain on deconsolidation of subsidiary relates to Omnicare, a wholly-owned indirect subsidiary of CVS Health Corporation, and certain of its subsidiary entities (collectively, the "Omnicare Entities"). In September 2025, the Omnicare Entities voluntarily initiated Chapter 11 proceedings under the U.S. Bankruptcy Code, at which time the Company determined that it no longer retained control of the Omnicare Entities and deconsolidated the subsidiaries.Following the voluntarily initiation of Chapter 11 proceedings described above, it was determined that the Company's investment in a subsidiary became worthless in 2025. Consequently, the Company recognized a related net tax benefit of approximately $1.9 billion in the aggregate during the three months and year ended December 31, 2025.The corresponding tax benefit or expense related to the items excluded from adjusted income attributable to CVS Health and Adjusted EPS above. The nature of each non-GAAP adjustment is evaluated to determine whether a discrete adjustment should be made to the adjusted income tax provision.See endnotes (1) and (2) on page 24 for definitions of non-GAAP financial measures. Reconciliations of each non-GAAP financial measure to the most directly comparable GAAP financial measure are presented on pages 14 through 16 and page 23.
Reconciliations of Non-GAAP Financial Measures to the Most Directly Comparable GAAP Financial
Measures
Adjusted Operating Income(Unaudited)
The following are reconciliations of consolidated operating income (GAAP measure) to consolidated adjusted operating
income, as well as reconciliations of segment GAAP operating income (loss) to segment adjusted operating income (loss):

Three Months Ended December 31, 2025In millionsHealth CareBenefits
HealthServices
Pharmacy &ConsumerWellness
Corporate/Other
ConsolidatedTotalsOperating income (loss) (GAAP measure)$            (936)
$       1,790
$            1,846
$          (588)
$            2,112Amortization of intangible assets274
143
65
1
483Net realized capital (gains) losses(14)
(10)
—
9
(15)Acquisition-related integration costs—
—
—
17
17Adjusted operating income (loss) (1)$            (676)
$       1,923
$            1,911
$          (561)
$            2,597

Three Months Ended December 31, 2024In millionsHealth CareBenefits
HealthServices
Pharmacy &ConsumerWellness
Corporate/Other

ConsolidatedTotalsOperating income (loss) (GAAP measure)$            (757)
$       1,903
$            1,694
$          (472)

$            2,368Amortization of intangible assets294
147
61
1

503Net realized capital (gains) losses15
(289)
—
68

(206)Acquisition-related integration costs—
—
—
40

40Office real estate optimization charges9
—
3
1

13Restructuring charges—
—
—
10

10Adjusted operating income (loss) (1)$            (439)
$       1,761
$            1,758
$          (352)

$            2,728
Year Ended December 31, 2025In millionsHealth
CareBenefits
HealthServices
Pharmacy &ConsumerWellness
Corporate/Other
ConsolidatedTotalsOperating income (loss) (GAAP measure)$          1,793
$          220
$            4,860
$      (2,213)
$            4,660Amortization of intangible assets1,155
569
249
3
1,976Net realized capital (gains) losses(13)
(25)
—
82
44Acquisition-related integration costs—
—
—
117
117Goodwill impairment—
5,725
—
—
5,725Health Care Delivery clinic closure charge—
83
—
—
83Opioid litigation charge—
—
—
320
320Office real estate optimization charges4
—
2
4
10Legacy litigation charges—
291
929
—
1,220Loss on Accountable Care assets—
288
—
—
288Adjusted operating income (loss) (1)$          2,939
$       7,151
$            6,040
$      (1,687)
$          14,443

Year Ended December 31, 2024In millionsHealth
CareBenefits
HealthServices
Pharmacy &ConsumerWellness
Corporate/Other
ConsolidatedTotalsOperating income (loss) (GAAP measure)$            (984)
$       6,937
$            4,770
$      (2,207)
$            8,516Amortization of intangible assets1,175
595
253
2
2,025Net realized capital (gains) losses97
(289)
—
75
(117)Acquisition-related integration costs—
—
—
243
243Opioid litigation charge—
—
—
100
100Office real estate optimization charges19
—
4
7
30Restructuring charges—
—
747
432
1,179Adjusted operating income (loss) (1)$              307
$       7,243
$            5,774
$      (1,348)
$          11,976 Adjusted Earnings Per Share(Unaudited)
The following are reconciliations of net income attributable to CVS Health to adjusted income attributable to CVS
Health and calculations of GAAP diluted earnings per share and Adjusted EPS:

Three Months EndedDecember 31, 2025
Three Months Ended December 31, 2024In millions, except per share amountsTotal
Company
Per
Common
Share
Total
Company
Per
Common
ShareNet income attributable to CVS Health (GAAP measure)$      2,943
$        2.30
$      1,644
$        1.30Amortization of intangible assets483
0.38
503
0.40Net realized capital gains(15)
(0.01)
(206)
(0.16)Acquisition-related integration costs17
0.01
40
0.03Office real estate optimization charges—
—
13
0.01Restructuring charges—
—
10
0.01Gain on early extinguishment of debt—
—
(491)
(0.39)Tax benefit from worthless stock deduction(1,928)
(1.51)
—
—Tax impact of other non-GAAP adjustments(113)
(0.08)
(7)
(0.01)Adjusted income attributable to CVS Health (2)$      1,387
$        1.09
$      1,506
$        1.19

Weighted average diluted shares outstanding

1,277

1,261

Year Ended
December 31, 2025
Year Ended
December 31, 2024In millions, except per share amountsTotal
Company
Per
Common
Share
Total
Company
Per
Common
ShareNet income attributable to CVS Health (GAAP measure)$     1,768
$       1.39
$      4,614
$       3.66Amortization of intangible assets1,976
1.56
2,025
1.61Net realized capital (gains) losses44
0.03
(117)
(0.09)Acquisition-related integration costs117
0.09
243
0.19Goodwill impairment5,725
4.50
—
—Health Care Delivery clinic closure charge83
0.07
—
—Opioid litigation charges320
0.25
100
0.08Office real estate optimization charges10
0.01
30
0.02Legacy litigation charges1,220
0.96
—
—Loss on Accountable Care assets288
0.23
—
—Restructuring charges—
—
1,179
0.93Gain on early extinguishment of debt—
—
(491)
(0.39)Gain on deconsolidation of subsidiary(483)
(0.38)
—
—Tax benefit from worthless stock deduction(1,928)
(1.51)
—
—Tax impact of other non-GAAP adjustments(568)
(0.45)
(745)
(0.59)Adjusted income attributable to CVS Health (2)$     8,572
$       6.75
$      6,838
$       5.42

Weighted average diluted shares outstanding

1,271

1,262

  Supplemental Information
(Unaudited)The Company's segments maintain separate financial information, and the Company's chief operating decision maker (the "CODM") evaluates the segments' operating results on a regular basis in deciding how to allocate resources among the segments and in assessing segment performance. The CODM evaluates the performance of the Company's segments based on adjusted operating income. Adjusted operating income is defined as operating income (loss) (GAAP measure) excluding the impact of amortization of intangible assets, net realized capital gains or losses and other items, if any, that neither relate to the ordinary course of the Company's business nor reflect the Company's underlying business performance as further described in endnote (1). The CODM uses adjusted operating income as its principal measure of segment performance as it enhances the CODM's ability to compare past financial performance with current performance and analyze underlying business performance and trends.The following are reconciliations of financial measures of the Company's segments to the consolidated totals:In millionsHealth CareBenefits
Health
Services (a)
Pharmacy &ConsumerWellness
Corporate/Other
Intersegment
Eliminations (b)
ConsolidatedTotalsThree Months Ended

December 31, 2025

Total revenues$     36,293
$   51,244
$      37,660
$        122
$        (19,626)
$     105,693Adjusted operating income
(loss) (1)(676)
1,923
1,911
(561)
—
2,597December 31, 2024

Total revenues$     32,958
$   47,020
$      33,514
$          83
$        (15,865)
$      97,710Adjusted operating income
(loss) (1)(439)
1,761
1,758
(352)
—
2,728

Year Ended

December 31, 2025

Total revenues$   143,354
$ 190,425
$    139,367
$        484
$        (71,563)
$     402,067Adjusted operating income
(loss) (1)2,939
7,151
6,040
(1,687)
—
14,443December 31, 2024

Total revenues$   130,665
$ 173,605
$    124,500
$        451
$        (56,412)
$     372,809Adjusted operating income
(loss) (1)307
7,243
5,774
(1,348)
—
11,976

(a)Total revenues of the Health Services segment include approximately $2.1 billion and $2.5 billion of retail co-payments for the three months ended December 31, 2025 and 2024, respectively, and $10.9 billion and $11.4 billion of retail co-payments for the years ended December 31, 2025 and 2024, respectively.(b)Intersegment revenue eliminations relate to intersegment revenue generating activities that occur between the Health Care Benefits segment, the Health Services segment, and/or the Pharmacy & Consumer Wellness segment.   Supplemental Information(Unaudited)
Health Care Benefits segment
The following table summarizes the Health Care Benefits segment's performance for the respective periods:

Change
Three Months Ended December 31,
Year Ended December 31,
Three Months Ended December 31,2025 vs 2024
Year Ended December 31,2025 vs 2024In millions, except percentages and
basis points ("bps")2025
2024
2025
2024
$
%
$
%Revenues:

Premiums$ 34,018
$ 30,902
$ 134,749
$ 122,849
$    3,116
10.1 %
$    11,900
9.7 %Services1,800
1,659
6,823
6,343
141
8.5 %
480
7.6 %Net investment income475
397
1,782
1,473
78
19.6 %
309
21.0 % Total revenues36,293
32,958
143,354
130,665
3,335
10.1 %
12,689
9.7 %Health care costs32,253
29,300
122,949
113,659
2,953
10.1 %
9,290
8.2 %MBR (Health care costs as a % of
premium revenues) (3)94.8 %
94.8 %
91.2 %
92.5 %
—bps
(130)bpsOperating expenses$   4,976
$   4,415
$ 18,612
$ 17,990
$       561
12.7 %
$         622
3.5 %Operating expenses as a % of
total revenues13.7 %
13.4 %
13.0 %
13.8 %

Operating income (loss)$   (936)
$   (757)
$   1,793
$   (984)
$     (179)
(23.6) %
$      2,777
282.2 %Operating income (loss) as a % of
total revenues(2.6) %
(2.3) %
1.3 %
(0.8) %

Adjusted operating income (loss) (1)$   (676)
$   (439)
$   2,939
$       307
$     (237)
(54.0) %
$      2,632
857.3 %Adjusted operating income (loss)
as a % of total revenues(1.9) %
(1.3) %
2.1 %
0.2 %

Premium revenues (by business):

Government$ 26,562
$ 22,164
$ 103,362
$ 88,433
$    4,398
19.8 %
$    14,929
16.9 %Commercial7,456
8,738
31,387
34,416
(1,282)
(14.7) %
(3,029)
(8.8) % The following table summarizes the Health Care Benefits segment's medical membership for the respective periods:

December 31, 2025
September 30, 2025
December 31, 2024In thousandsInsured
ASC
Total
Insured
ASC
Total
Insured
ASC
TotalMedical membership: (4)

Commercial3,447
15,350
18,797
3,536
15,314
18,850
4,691
14,160
18,851Medicare Advantage4,267
—
4,267
4,266
—
4,266
4,447
—
4,447Medicare Supplement1,202
—
1,202
1,221
—
1,221
1,282
—
1,282Medicaid1,952
373
2,325
1,978
388
2,366
2,094
421
2,515Total medical membership10,868
15,723
26,591
11,001
15,702
26,703
12,514
14,581
27,095

Supplemental membership information:

Medicare Prescription Drug Plan (stand-alone)4,041

4,056

4,882 The following table summarizes the Health Care Benefits segment's days claims payable for the respective periods:

December 31, 2025
September 30, 2025
June 30, 2025
March 31, 2025
December 31, 2024Days Claims Payable (7)38.9
42.5
40.9
43.2
44.0 Supplemental Information(Unaudited)
Health Services segment
The following table summarizes the Health Services segment's performance for the respective periods:

Change
Three Months Ended December 31,
Year Ended December 31,
Three Months Ended December 31,2025 vs 2024
Year Ended December 31,2025 vs 2024In millions, except percentages2025
2024
2025
2024
$
%
$
%Revenues:

Products$ 48,802
$ 44,019
$ 180,927
$ 162,436
$    4,783
10.9 %
$ 18,491
11.4 %Services2,432
2,713
9,478
10,884
(281)
(10.4) %
(1,406)
(12.9) %Net investment income10
288
20
285
(278)
(96.5) %
(265)
(93.0) % Total revenues51,244
47,020
190,425
173,605
4,224
9.0 %
16,820
9.7 %Cost of products sold47,209
43,358
175,634
160,036
3,851
8.9 %
15,598
9.7 %Health care costs1,395
979
4,834
3,407
416
42.5 %
1,427
41.9 %Gross profit (8)2,640
2,683
9,957
10,162
(43)
(1.6) %
(205)
(2.0) %Gross margin (Gross profit as a
% of total revenues) (8)5.2 %
5.7 %
5.2 %
5.9 %

Operating expenses$       850
$       780
$ 4,012
$ 3,225
$         70
9.0 %
$       787
24.4 %Operating expenses as a % of
total revenues1.7 %
1.7 %
2.1 %
1.9 %

Goodwill impairment$         —
$         —
$ 5,725
$        —
$         —
— %
$    5,725
100.0 %Operating income1,790
1,903
220
6,937
(113)
(5.9) %
(6,717)
(96.8) %Operating income as a % of total
revenues3.5 %
4.0 %
0.1 %
4.0 %

Adjusted operating income (1)$   1,923
$   1,761
$ 7,151
$ 7,243
$       162
9.2 %
$       (92)
(1.3) %Adjusted operating income as a
% of total revenues3.8 %
3.7 %
3.8 %
4.2 %

Revenues (by distribution
channel):

Pharmacy network (9)$ 27,588
$ 25,202
$ 101,775
$ 91,650
$    2,386
9.5 %
$ 10,125
11.0 %Mail & specialty (10)21,263
18,750
79,334
70,877
2,513
13.4 %
8,457
11.9 %Other2,383
2,780
9,296
10,793
(397)
(14.3) %
(1,497)
(13.9) %Net investment income10
288
20
285
(278)
(96.5) %
(265)
(93.0) %Pharmacy claims processed (5) (6)491.9
499.4
1,900.7
1,917.6
(7.5)
(1.5) %
(16.9)
(0.9) % Supplemental Information(Unaudited)
Pharmacy & Consumer Wellness segment
The following table summarizes the Pharmacy & Consumer Wellness segment's performance for the respective periods:

Change
Three Months Ended December 31,
Year Ended December 31,
Three Months Ended December 31,2025 vs 2024
Year Ended December 31,2025 vs 2024In millions, except percentages2025
2024
2025
2024
$
%
$
%Revenues:

Products$ 36,845
$ 32,833
$ 136,575
$ 122,028
$    4,012
12.2 %
$ 14,547
11.9 %Services815
681
2,792
2,472
134
19.7 %
320
12.9 % Total revenues37,660
33,514
139,367
124,500
4,146
12.4 %
14,867
11.9 %Cost of products sold30,578
26,710
113,583
99,337
3,868
14.5 %
14,246
14.3 %Gross profit (8)7,082
6,804
25,784
25,163
278
4.1 %
621
2.5 %Gross margin (Gross profit as a
% of total revenues) (8)18.8 %
20.3 %
18.5 %
20.2 %

Operating expenses $ 5,236
$   5,110
$ 20,924
$ 19,646
$       126
2.5 %
$    1,278
6.5 %Operating expenses as a % of
total revenues13.9 %
15.2 %
15.0 %
15.8 %

Restructuring charges$        —
$         —
$         —
$       747
$         —
— %
$     (747)
(100.0) %Operating income1,846
1,694
4,860
4,770
152
9.0 %
90
1.9 %Operating income as a % of
total revenues4.9 %
5.1 %
3.5 %
3.8 %

Adjusted operating income (1)$ 1,911
$   1,758
$    6,040
$    5,774
$       153
8.7 %
$       266
4.6 %Adjusted operating income as
a % of total revenues5.1 %
5.2 %
4.3 %
4.6 %

Revenues (by major
goods/service lines):

Pharmacy$ 31,375
$ 27,224
$ 115,510
$ 100,687
$    4,151
15.2 %
$ 14,823
14.7 %Front Store 5,656
5,675
21,459
21,522
(19)
(0.3) %
(63)
(0.3) %Other629
615
2,398
2,291
14
2.3 %
107
4.7 %Prescriptions filled (5) (6)473.8
445.9
1,808.8
1,715.5
27.9
6.3 %
93.3
5.4 %Same store sales increase
(decrease): (11)

Total16.0 %
10.2 %
15.0 %
9.4 %

Pharmacy19.3 %
13.0 %
18.0 %
12.3 %

Front Store0.5 %
(1.2) %
1.2 %
(2.1) %

Prescription volume (6)9.7 %
5.9 %
8.0 %
6.8 %

Supplemental Information(Unaudited)
Corporate/Other segment The following table summarizes the Corporate/Other segment's performance for the respective periods:

Change
Three Months EndedDecember 31,
Year Ended December 31,
Three Months Ended December 31,2025 vs 2024
Year Ended December 31,2025 vs 2024In millions, except percentages2025
2024
2025
2024
$
%
$
%Revenues:

Premiums $          11
$          11
$          45
$          47
$          —
— %
$          (2)
(4.3) %Services2
2
8
9
—
— %
(1)
(11.1) %Net investment income109
70
431
395
39
55.7 %
36
9.1 % Total revenues122
83
484
451
39
47.0 %
33
7.3 %Health care costs44
45
177
187
(1)
(2.2) %
(10)
(5.3) %Operating expenses666
500
2,520
2,039
166
33.2 %
481
23.6 %Restructuring charges—
10
—
432
(10)
(100.0) %
(432)
(100.0) %Operating loss (588)
(472)
(2,213)
(2,207)
(116)
(24.6) %
(6)
(0.3) %Adjusted operating loss (1)(561)
(352)
(1,687)
(1,348)
(209)
(59.4) %
(339)
(25.1) %  Supplemental Information(Unaudited)
The following table shows the components of the change in the consolidated health care costs payable during the
years ended December 31, 2025 and 2024:

Year Ended December 31,In millions2025
2024Health care costs payable, beginning of the period$       15,064
$       12,049Less: Reinsurance recoverables81
5Less: Impact of discount rate on long-duration insurance reserves (a)(1)
(23)Health care costs payable, beginning of the period, net14,984
12,067Add: Components of incurred health care costs

Current year127,256
115,774 Prior years (b)(1,982)
(947)Total incurred health care costs (c)125,274
114,827Less: Claims paid

Current year113,023
101,583 Prior years11,906
10,327Total claims paid124,929
111,910Health care costs payable, end of the period, net15,329
14,984Add: Reinsurance recoverables90
81Add: Impact of discount rate on long-duration insurance reserves (a)(20)
(1)Health care costs payable, end of the period$       15,399
$       15,064

(a)Reflects the difference between the current discount rate and the locked-in discount rate on long-duration insurance reserves which is recorded within accumulated other comprehensive income (loss) on the condensed consolidated balance sheets.(b)Negative amounts reported for incurred health care costs related to prior years result from claims being settled for amounts less than originally estimated.(c)Total incurred health care costs for the years ended December 31, 2025 and 2024 in the table above exclude $87 million and $107 million, respectively, of health care costs recorded in the Health Care Benefits segment that are included in other insurance liabilities on the condensed consolidated balance sheets and $177 million and $187 million, respectively, of health care costs recorded in the Corporate/Other segment that are included in other insurance liabilities on the condensed consolidated balance sheets.

Adjusted Earnings Per Share Guidance
(Unaudited)The following reconciliations of projected net income attributable to CVS Health to projected adjusted income attributable to CVS Health and calculations of projected GAAP diluted EPS and projected Adjusted EPS contain forward-looking information. All forward-looking information involves risks and uncertainties. Actual results may differ materially from those contemplated by the forward-looking information for a number of reasons as described in our SEC filings, including those set forth in the Risk Factors section and under the heading "Cautionary Statement Concerning Forward-Looking Statements" in our most recently filed Annual Report on Form 10-K and our most recently filed Quarterly Report on Form 10-Q. See "Non-GAAP Financial Information" earlier in this press release and endnote (2) later in this press release for more information on how we calculate Adjusted EPS.
Year Ending December 31, 2026
Low
HighIn millions, except per share amountsTotal
Company
Per
Common
Share
Total
Company
Per
Common
ShareNet income attributable to CVS Health (GAAP measure)$      7,638
$        5.94
$     7,892
$       6.14Non-GAAP adjustments:

Amortization of intangible assets1,730
1.35
1,730
1.35Acquisition-related integration costs80
0.06
80
0.06Tax impact of non-GAAP adjustments(450)
(0.35)
(450)
(0.35)Adjusted income attributable to CVS Health (2)$      8,998
$        7.00
$     9,252
$       7.20

Weighted average diluted shares outstanding

1,285

1,285
Endnotes(1) The Company defines adjusted operating income as operating income (GAAP measure) excluding the impact of amortization of intangible assets, net realized capital gains or losses and other items, if any, that neither relate to the ordinary course of the Company's business nor reflect the Company's underlying business performance, such as acquisition-related integration costs, goodwill impairment charges, Health Care Delivery clinic closure charges, opioid litigation charges, office real estate optimization charges, certain legacy litigation charges, losses on Accountable Care assets and restructuring charges. The CODM uses adjusted operating income as its principal measure of segment performance as it enhances the CODM's ability to compare past financial performance with current performance and analyze underlying business performance and trends. The consolidated measure is not determined in accordance with GAAP and should not be considered a substitute for, or superior to, the most directly comparable GAAP measure, consolidated operating income. See "Non-GAAP Financial Information" earlier in this press release for additional information regarding the items excluded from consolidated operating income in determining consolidated adjusted operating income.(2) GAAP diluted earnings per share and Adjusted EPS, respectively, are calculated by dividing net income attributable to CVS Health and adjusted income attributable to CVS Health by the Company's weighted average diluted shares outstanding. The Company defines adjusted income attributable to CVS Health as net income attributable to CVS Health (GAAP measure) excluding the impact of amortization of intangible assets, net realized capital gains or losses and other items, if any, that neither relate to the ordinary course of the Company's business nor reflect the Company's underlying business performance, such as acquisition-related integration costs, goodwill impairment charges, Health Care Delivery clinic closure charges, opioid litigation charges, office real estate optimization charges, certain legacy litigation charges, losses on Accountable Care assets, restructuring charges, gains on early extinguishment of debt, the gain on deconsolidation of subsidiary, the tax benefit from a worthless stock deduction, as well as the corresponding income tax benefit or expense related to the items excluded from adjusted income attributable to CVS Health. See "Non-GAAP Financial Information" earlier in this press release for additional information regarding the items excluded from net income attributable to CVS Health in determining adjusted income attributable to CVS Health.(3) Medical benefit ratio is calculated by dividing the Health Care Benefits segment's health care costs by premium revenues and represents the percentage of premium revenues spent on medical benefits for the segment's insured members. Management uses MBR to assess the underlying business performance and underwriting of its insurance products, understand variances between actual results and expected results and identify trends in period-over-period results. MBR provides management and investors with information useful in assessing the operating results of the Health Care Benefits segment's insured products.(4) Medical membership represents the number of members covered by the Health Care Benefits segment's insured and ASC medical products and related services at a specified point in time. Management uses this metric to understand variances between actual medical membership and expected amounts as well as trends in period-over-period results. This metric provides management and investors with information useful in understanding the impact of medical membership on the Health Care Benefits segment's total revenues and operating results.(5) Pharmacy claims processed represents the number of prescription claims processed through the Company's pharmacy benefits manager and dispensed by either its retail network pharmacies or the Company's mail and specialty pharmacies. Prescriptions filled represents the number of prescriptions dispensed through the Pharmacy & Consumer Wellness segment's retail pharmacies and infusion services operations, as well as through the Omnicare long-term care pharmacies prior to their deconsolidation in September 2025. Management uses these metrics to understand variances between actual claims processed and prescriptions dispensed, respectively, and expected amounts as well as trends in period-over-period results. These metrics provide management and investors with information useful in understanding the impact of pharmacy claim volume and prescription volume, respectively, on segment total revenues and operating results.(6) Includes an adjustment to convert 90-day prescriptions to the equivalent of three 30-day prescriptions. This adjustment reflects the fact that these prescriptions include approximately three times the amount of product days supplied compared to a normal prescription.(7) Days claims payable is calculated by dividing the Health Care Benefits segment's health care costs payable at the end of each quarter by its average health care costs per day during such quarter. Management and investors use this metric as an indicator of the adequacy of the Health Care Benefits segment's health care costs payable liability at the end of each quarter and as an indicator of changes in such adequacy over time.(8) Gross profit is calculated as the segment's total revenues less its cost of products sold, and, for the Health Services segment, health care costs. Gross margin is calculated by dividing the segment's gross profit by its total revenues and represents the percentage of total revenues that remains after incurring direct costs associated with the segment's products sold and services provided. Gross margin provides investors with information that may be useful in assessing the operating results of the Company's Health Services and Pharmacy & Consumer Wellness segments.(9) Health Services pharmacy network revenues relate to claims filled at retail and specialty retail pharmacies, including pharmacies owned by the Company, as well as activity associated with Maintenance Choice®, which permits eligible client plan members to fill their maintenance prescriptions through mail order delivery or at a CVS pharmacy retail store for the same price as mail order.(10) Health Services mail and specialty revenues relate to specialty mail claims inclusive of Specialty Connect® claims picked up at a retail pharmacy, as well as mail order and specialty claims fulfilled by the Pharmacy & Consumer Wellness segment.(11) Same store sales and prescription volume represent the change in revenues and prescriptions filled in the Company's retail pharmacy stores that have been operating for greater than one year and digital sales initiated online or through mobile applications and fulfilled through the Company's distribution centers, expressed as a percentage that indicates the increase or decrease relative to the comparable prior period. Same store metrics exclude revenues and prescriptions from infusion services operations and long-term care pharmacies. Management uses these metrics to evaluate the performance of existing stores on a comparable basis and to inform future decisions regarding existing stores and new locations. Same-store metrics provide management and investors with information useful in understanding the portion of current revenues and prescriptions resulting from organic growth in existing locations versus the portion resulting from opening new stores.

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Original: CVS HEALTH CORPORATION REPORTS FOURTH QUARTER AND FULL-YEAR 2025 RESULTS