CVS Health increased its annual profit guidance following better-than-expected second-quarter results driven by an improved pharmaceutical mix and bonus payments from highly-rated government health insurance plans. The company adjusted its 2026 adjusted profit per share forecast to a range of $7.90 to $8.10, up from prior guidance of $7.30 to $7.50. Wall Street analysts had been expecting full-year earnings per share of $7.45.
The pharmacy and insurance operator posted adjusted second-quarter profit of $2.58 per share, surpassing analyst estimates of $1.85 per share. Quarterly revenue climbed to $106.1 billion from $98.9 billion, exceeding expectations of $100.11 billion. The results marked the company’s sixth consecutive quarterly beat of Wall Street estimates, representing progress in rebuilding investor confidence particularly in its Aetna insurance division, which had missed targets repeatedly in earlier periods.
Aetna’s medical loss ratio, measuring the percentage of premiums spent on medical care, improved to 87.4% from 89.9% a year prior, compared to analyst estimates of 90.03%. The improvement was supported by industry-leading Star ratings, a government measurement of member outcomes and experience that qualifies Medicare plans for bonus payments. CVS’s health services unit, which includes clinics and primary care operations, saw operating profits increase 10% to $1.73 billion from $1.58 billion.
The company announced that its MinuteClinic walk-in and virtual care service will offer $29 appointments for weight-loss drug consultations featuring medications including Novo Nordisk’s Wegovy and Eli Lilly’s Foundayo and Zepbound. Additionally, CVS disclosed plans to slow expansion of its Oak Street primary care business and close 16 underperforming locations. Despite the improved outlook, the company cautioned that elevated cost trends and potential macroeconomic headwinds warranted a measured approach to future expectations.
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