Bank of America Cuts CVS Fiscal 2026 EPS Forecast 4%, Lowers Price Target to $78
Bank of America reduced its fiscal 2026 EPS estimate for CVS by 4% and trimmed its price target from $85 to $78 following the company's fourth-quarter earnings release. Analysts cited softer pharmacy margins and higher operating expenses as drivers of the downward revision.
1. Forecast Adjustments
Bank of America analysts lowered their fiscal 2026 earnings per share estimate for CVS by 4% after reviewing the retailer’s fourth-quarter report. The brokerage also reduced its price target from $85 to $78, reflecting concerns over near-term profitability pressures.
2. Earnings Drivers
The downward revision was driven by unexpectedly weak pharmacy margins and elevated operating expenses, which CVS highlighted in its earnings release. Higher labor and supply costs in the pharmacy segment were cited as key factors eroding expected profitability.