CVS Health Q4 Sales Rise 8.2% to $105.7B, EPS Beats, Outlook Reaffirmed
CVS Health reported Q4 2025 sales of $105.69 billion, 8.2% above last year, and adjusted EPS of $1.09, beating estimates of $103.59 billion revenue and $0.99 EPS. The company reaffirmed its $7.00–$7.20 EPS outlook while lowering 2026 revenue to at least $400 billion and cash flow guidance to $9 billion.
1. Q4 Financial Performance
CVS Health posted fourth-quarter sales of $105.69 billion, up 8.2% year-over-year, and adjusted earnings of $1.09 per share, exceeding analyst models. Adjusted operating income fell 4.8% to $2.59 billion due to changes in Medicare Part D seasonality under the Inflation Reduction Act.
2. Segment Performance
Revenues in Health Care Benefits climbed 10.1% to $36.29 billion, driven by Government business growth tied to the Medicare Part D program changes. Health Services sales rose 9% to $51.24 billion on pharmacy mix and brand inflation, while Pharmacy & Consumer Wellness revenue grew 12.4% to $37.66 billion, boosted by Rite Aid prescription file acquisitions.
3. 2026 Guidance Update
The company reaffirmed its fiscal 2026 adjusted EPS guidance of $7.00–$7.20 per share but lowered revenue guidance to at least $400 billion versus consensus of $409.8 billion. Cash flow from operations guidance was reduced to a minimum of $9.0 billion from $10.0 billion, reflecting updated capital and operating assumptions.