CVS Health (CVS) stock is trending due to recent financial updates, including a raised earnings forecast for 2026 and a reported earnings beat for the third quarter. These developments follow a period where the company’s trailing price-to-earnings (P/E) multiple was impacted by a significant non-cash impairment charge in the previous fiscal year, according to Yahoo Finance.
Raised Earnings Forecast
On August 5, 2026, CVS management raised its forecast for 2026 earnings per share (EPS), as reported by Yahoo Finance and WSJ. The midpoint of the revised forecast increased to $6.94 from $6.34 in May. This upward revision is attributed to gains in the company’s Health Care Benefits and Pharmacy segments, as stated by WSJ.
According to Yahoo Finance, the Health Care Benefits segment operates CVS’s health plans, covering approximately 26 million medical members. The Pharmacy & Consumer Wellness segment manages the CVS Pharmacy stores. Management noted that every operating segment grew earnings in fiscal Q2 2026.
Recent Financial Performance
CVS Health stock experienced a slight dip despite reporting a third-quarter earnings beat, as indicated by Seeking Alpha. This recent performance builds on earlier improvements, with CVS reporting an operating margin of 4.4% in fiscal Q2 2026, an increase from 2.4% in fiscal Q2 2025, according to Yahoo Finance.
The company’s financial metrics show it tracking closely with competitors like Cigna. Revenue at CVS grew 7.4% over its latest four fiscal quarters, compared with 7.7% for Cigna. On operating margin, CVS maintained 3.4% of revenue as operating profit, while Cigna held 3.2%, Yahoo Finance reports. Between October 29, 2025, and October 30, 2026, CVS delivered a 15.4% total return, outperforming Cigna’s 2.0% total return.
Context of Previous Impairment
Yahoo Finance explains that CVS’s P/E multiple previously appeared higher than some peers due to a $3.97 billion net loss in fiscal Q3 2025. This loss was a result of a $5.7 billion goodwill impairment recorded in its Health Care Delivery business. This non-cash impairment depressed trailing GAAP net income, making CVS’s trailing P/E multiple not directly comparable to peers that maintained uninterrupted quarterly profitability.
The raised forecast for 2026 covers a year without the impact of this losing quarter, providing a clearer picture of the company’s operational performance. At the October 30 close of $90.25, CVS shares traded at approximately 13 times earnings, according to Yahoo Finance.
Sources
- Is CVS Health Stock Worth More Than Its Competitors? (Yahoo Finance)
- CVS Health stock slips despite Q3 beat (CVS:NYSE) (Seeking Alpha)
- CVS Raises Forecast on Health Care Benefits, Pharmacy Gains (WSJ)
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