CVS Health (NYSE: $CVS) reported solid performance for the fourth quarter and full year of 2025 on February 10, 2026. The company showed revenue growth across its main business areas, but its stock dropped about 3% in early trading due to concerns over its insurance segment and a cautious outlook for 2026.
CVS Health Q4 Results
For the fourth quarter ending December 31, 2025, total revenue reached $105.7 billion. This marked an 8.2% increase from the same period in 2024 and beat analyst expectations, which were around $103.6 billion to $103.7 billion. Net income climbed to $2.9 billion from $1.6 billion a year earlier. Adjusted earnings per share stood at $1.09, topping the consensus estimate of $1.00 but below the $1.19 from Q4 2024.
The dip in adjusted EPS came mostly from the Health Care Benefits segment, which includes Aetna. An adjusted operating loss there grew to $676 million. CVS pointed to changes in the Medicare Part D program caused by the Inflation Reduction Act. These changes altered the timing of costs, leading to higher expenses in the quarter.
All three core segments posted gains:
- Health Care Benefits revenue rose 10.1% to $36.3 billion.
- Health Services (including the Caremark pharmacy benefits manager) increased 9.0% to $51.2 billion.
- Pharmacy & Consumer Wellness (retail stores) jumped 12.4% to $37.7 billion, driven by more prescriptions and a good mix of drugs. Same-store sales grew 15.0%, better than the expected 14.0%.
- For the full year 2025, CVS set a record with revenue of $402.1 billion, up 7.8% from 2024. Adjusted EPS for the year was $6.75.
Analysts see promise in the retail side. Mizuho’s Ann Hynes expressed confidence in CVS’s recovery efforts. She highlighted possible market share gains as rivals face issues. Rite Aid closed many stores after bankruptcy problems, and Walgreens Boots Alliance went private in a deal with Sycamore Partners completed in August 2025. This shift could bring more customers to CVS pharmacies.
Market Performance
Despite the positive results, the stock fell in premarket trading. Investors focused on the 2026 guidance. CVS expects revenue of at least $400 billion, which some view as flat compared to 2025’s $402.1 billion. Analysts had hoped for closer to $409 billion. The company held adjusted EPS guidance at $7.00 to $7.20, near estimates of about $7.18. Cash flow from operations was cut to at least $9 billion, down from $10.6 billion in 2025.
Over the past year, CVS stock has risen about 40%, outperforming the S&P 500’s 15% gain. This reflects progress in the company’s turnaround plan, including cost controls and better operations in retail and services.
CVS operates an integrated model that combines retail pharmacies, pharmacy benefits management, and health insurance. This setup helps it serve customers in multiple ways, but regulatory shifts in Medicare create ongoing pressure. The Inflation Reduction Act has reshaped drug pricing and insurance costs, affecting profitability in the benefits area.
Is CVS A Buy In 2026?
The retail pharmacy business stands out as a potential bright spot. With fewer competitors in some markets, CVS could capture more volume. The company continues to focus on execution and cost management to navigate these challenges.
CVS Health posted a strong close to 2025 with revenue beats and growth in key areas. However, Medicare-related headwinds and conservative 2026 guidance tempered investor enthusiasm. The company’s integrated approach and retail momentum offer reasons for optimism as it works through industry changes.
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