CVS Health Corporation (CVS)
For informational purposes only. Not financial advice. Analysis by Sedat ANAK, Founder & Editor-in-Chief | AI-powered analysis. Data sourced from SEC filings and institutional-grade financial providers. Editorially reviewed. Not financial advice.
CVS Health Corporation (CVS) trades at $104.72 with AI Score 74/100 (Grade A). CVS Health Corporation is a leading healthcare company providing a wide array of services, including health insurance, pharmacy benefit management, and retail pharmacy. Market cap: $133.62B, Sector: Healthcare.
Price live · AI analysis from May 10, 2026CVS stock analysis for 2026: Analysts have set a consensus price target of $96.50 for CVS Health Corporation, suggesting 7.8% downside from the current price of $104.72. The AI MoonshotScore is 74/100, indicating a bullish outlook. Key factors: analyst coverage, AI-driven quantitative scoring.
CVS: 1/1 perspectives are bullish.
How is this calculated? →CVS Health Corporation (CVS) Healthcare & Pipeline Overview
CVS Health Corporation, a diversified healthcare giant, integrates health insurance, pharmacy services, and retail clinics. With a vast network of pharmacies and MinuteClinics, CVS provides comprehensive healthcare solutions, leveraging its pharmacy benefit management to serve diverse clients, from employers to government entities, in a competitive healthcare landscape.
What Is the Investment Thesis for CVS?
CVS Health Corporation presents a compelling investment case driven by its integrated healthcare model and diverse revenue streams. The company's Pharmacy Services segment benefits from the increasing demand for prescription drugs and the growing adoption of PBM solutions. The Retail/LTC segment leverages its extensive network of retail pharmacies and MinuteClinics to capture a significant share of the consumer healthcare market. With a dividend yield of 2.94%, CVS offers a steady income stream for investors. However, the company's relatively low profit margin of 0.7% and high P/E ratio of 12.3 warrant careful consideration. Growth catalysts include expansion of MinuteClinic services and strategic partnerships to enhance its healthcare offerings. Potential risks include regulatory changes and increased competition in the healthcare industry.
Based on FMP financials and quantitative analysis
CVS Key Highlights
- Market capitalization of $133.62B reflects CVS Health Corporation's significant presence in the healthcare industry.
- P/E ratio of 12.3 indicates investor expectations for future earnings growth.
- Gross margin of 13.9% demonstrates the company's ability to manage costs in its diverse operations.
- Dividend yield of 2.94% provides a steady income stream for investors.
- Beta of 0.51 suggests lower volatility compared to the overall market.
Who Are CVS's Competitors?
CVS is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.
| Company | Price | Change | Market Cap | AI Score |
|---|---|---|---|---|
| BMY Bristol-Myers Squibb Company | $58.13 | +2.99% | $118.71B | 88 |
| VRTX Vertex Pharmaceuticals Incorporated | $528.04 | +6.03% | $134.02B | 99 |
| GSK GSK plc | $53.66 | +4.60% | $107.47B | 61 |
| MDT Medtronic plc | $83.19 | +5.04% | $106.49B | 77 |
| HCA HCA Healthcare, Inc. | $410.50 | +4.39% | $91.07B | 86 |
| ALHC Alignment Healthcare, Inc. | $23.80 | -0.87% | $4.92B | 52 |
| GTS Triple-S Management Corporation | $35.99 | +1.04% | 52 | |
| HUM Humana Inc. | $396.75 | -3.09% | $47.63B | 50 |
AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance
What Are CVS's Key Strengths?
- Integrated healthcare model with diverse revenue streams.
- Extensive network of retail pharmacies and MinuteClinics.
- Strong brand recognition and customer loyalty.
- Pharmacy benefit management (PBM) expertise.
What Are CVS's Weaknesses?
- Relatively low profit margin.
- High P/E ratio.
- Exposure to regulatory changes in the healthcare industry.
- Dependence on prescription drug sales.
What Could Drive CVS Stock Higher?
- Expansion of MinuteClinic services to offer a wider range of healthcare services.
- Strategic partnerships and acquisitions to enhance healthcare offerings.
- Expansion of pharmacy benefit management (PBM) services to serve a wider range of clients.
- Digital health initiatives to improve patient engagement and enhance healthcare services.
- Focus on specialty pharmacy to capitalize on the growing demand for specialty drugs.
What Are the Key Risks for CVS?
- Insider selling — insiders were net sellers of roughly $326.4M recently.
- Increased competition in the healthcare industry could erode market share and profitability.
- Regulatory changes and healthcare reform could impact the company's business model and financial performance.
- Rising healthcare costs could put pressure on the company's margins.
- Economic downturn and reduced consumer spending could negatively impact retail sales.
- Dependence on prescription drug sales exposes the company to risks related to drug pricing and formulary management.
What Are the Growth Opportunities for CVS?
- Growth opportunity 1: Expansion of MinuteClinic Services: CVS has the opportunity to expand its MinuteClinic services to offer a wider range of healthcare services, such as chronic disease management and telehealth consultations. The market for convenient care clinics is projected to reach $40 billion by 2028, driven by increasing demand for accessible and affordable healthcare services. CVS can leverage its existing network of MinuteClinics and its brand recognition to capture a significant share of this market. Timeline: Ongoing.
- Growth opportunity 2: Strategic Partnerships and Acquisitions: CVS can pursue strategic partnerships and acquisitions to enhance its healthcare offerings and expand its market reach. The company can partner with healthcare providers, technology companies, and other healthcare organizations to develop innovative solutions and improve patient outcomes. The market for healthcare partnerships and acquisitions is expected to grow at a rate of 8% per year, driven by the need for collaboration and consolidation in the healthcare industry. Timeline: Ongoing.
- Growth opportunity 3: Expansion of Pharmacy Benefit Management (PBM) Services: CVS can expand its PBM services to serve a wider range of clients, including employers, insurance companies, and government entities. The market for PBM services is projected to reach $600 billion by 2027, driven by increasing demand for prescription drugs and the need to manage healthcare costs. CVS can leverage its expertise in formulary management and specialty pharmacy services to capture a significant share of this market. Timeline: Ongoing.
- Growth opportunity 4: Digital Health Initiatives: CVS can invest in digital health initiatives to improve patient engagement and enhance its healthcare services. The company can develop mobile apps, telehealth platforms, and other digital tools to provide patients with convenient access to healthcare information and services. The market for digital health solutions is projected to reach $379 billion by 2024, driven by increasing adoption of digital technologies in healthcare. CVS can leverage its brand recognition and its extensive network of retail pharmacies and MinuteClinics to capture a significant share of this market. Timeline: Ongoing.
- Growth opportunity 5: Focus on Specialty Pharmacy: CVS can further focus on its specialty pharmacy services to capitalize on the growing demand for specialty drugs. The specialty pharmacy market is expected to continue to grow rapidly, driven by the increasing prevalence of chronic diseases and the development of new specialty drugs. CVS can leverage its expertise in specialty pharmacy and its relationships with pharmaceutical manufacturers to capture a significant share of this market. Timeline: Ongoing.
What Opportunities Does CVS Have?
- Expansion of MinuteClinic services.
- Strategic partnerships and acquisitions.
- Expansion of pharmacy benefit management (PBM) services.
- Digital health initiatives.
What Threats Does CVS Face?
- Increased competition in the healthcare industry.
- Regulatory changes and healthcare reform.
- Rising healthcare costs.
- Economic downturn and reduced consumer spending.
What Are CVS's Competitive Advantages?
- Extensive network of retail pharmacies and MinuteClinics provides convenient access to healthcare services.
- Integrated healthcare model allows for cost management and improved patient outcomes.
- Strong brand recognition and customer loyalty.
- Pharmacy benefit management (PBM) expertise provides a competitive advantage in managing prescription drug costs.
- Scale and scope of operations provide economies of scale and bargaining power with suppliers.
What Does CVS Do?
Founded in 1963 and headquartered in Woonsocket, Rhode Island, CVS Health Corporation has evolved from a retail pharmacy chain into a diversified healthcare services provider. Originally known as CVS Caremark Corporation, the company rebranded to CVS Health Corporation in September 2014 to reflect its broader healthcare focus. CVS operates through three main segments: Health Care Benefits, Pharmacy Services, and Retail/LTC. The Health Care Benefits segment offers traditional and consumer-directed health insurance products, serving employer groups, individuals, and government entities. The Pharmacy Services segment provides pharmacy benefit management (PBM) solutions, including formulary management and specialty pharmacy services, catering to employers, insurance companies, and government employee groups. The Retail/LTC segment operates retail pharmacies, MinuteClinics, and online retail pharmacy websites, offering prescription and over-the-counter drugs, consumer health products, and healthcare services. As of December 31, 2021, CVS operated approximately 9,900 retail locations and 1,200 MinuteClinic locations, solidifying its presence in the healthcare market. CVS's integrated model allows it to manage costs, improve patient outcomes, and provide convenient access to healthcare services.
What Products and Services Does CVS Offer?
- Provides health insurance products and related services through its Health Care Benefits segment.
- Offers pharmacy benefit management (PBM) solutions, including plan design and administration.
- Manages retail pharmacy networks, mail order pharmacy, and specialty pharmacy services.
- Operates retail pharmacies that sell prescription and over-the-counter drugs.
- Sells consumer health and beauty products, and personal care products.
- Provides healthcare services through its MinuteClinic walk-in medical clinics.
- Distributes prescription drugs to care facilities and other care settings.
- Operates online retail pharmacy websites and LTC pharmacies.
How Does CVS Make Money?
- Generates revenue from premiums and fees for its health insurance products and services.
- Earns revenue from pharmacy benefit management services, including rebates and administrative fees.
- Generates revenue from the sale of prescription and over-the-counter drugs in its retail pharmacies.
- Earns revenue from the sale of consumer health and beauty products, and personal care products.
- Generates revenue from healthcare services provided in its MinuteClinic walk-in medical clinics.
What Industry Does CVS Operate In?
CVS Health Corporation operates in the dynamic healthcare industry, which is characterized by increasing demand for healthcare services, rising healthcare costs, and evolving regulatory landscape. The industry is driven by factors such as an aging population, technological advancements, and growing prevalence of chronic diseases. CVS competes with other major players in the healthcare industry, including BMY: Bristol-Myers Squibb Company, VRTX: Vertex Pharmaceuticals Incorporated, GSK: GSK plc, MDT: Medtronic plc, and HCA: HCA Healthcare, Inc.. The company's integrated model and extensive network of retail pharmacies and MinuteClinics provide a competitive advantage in capturing market share and delivering value to customers.
Who Are CVS's Key Customers?
- Employer groups seeking health insurance products and services for their employees.
- Individuals seeking health insurance coverage.
- Insurance companies seeking pharmacy benefit management solutions.
- Government employee groups seeking health insurance and pharmacy services.
- Consumers purchasing prescription and over-the-counter drugs, and consumer health products.
Company Profile
CVS Health Corporation operates in the Medical - Healthcare Plans industry within the Healthcare sector. It is headquartered in Woonsocket, US. The company is led by CEO J. David Joyner. CVS has traded publicly since 1996.
ROE 4%Key Financial Metrics
Return on equity for CVS Health Corporation stands at 3.9%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is 1.2%, showing how much profit it generates from its asset base. CVS trades at a trailing price-to-earnings ratio of 12.34, below the Healthcare sector average of ~23x. Its free cash flow yield is 5.7%, a gauge of the cash the business throws off relative to its market value. A current ratio of 0.87 means current liabilities exceed short-term assets, a liquidity point worth watching. Its earnings yield is 2.3%, the inverse of the P/E and a quick read on earnings relative to price.
CVS Valuation & Market Position
With a $133.62B market cap, CVS Health Corporation sits in the large-cap segment of the market. Relative to its peer group, CVS's quantitative score of 74/100 is roughly in line with the peer average of 82/100.
Quarterly Financial Performance: CVS Health Corporation
Revenue for CVS Health Corporation came in at $100.43B during Q1 2026, a 5.0% contraction versus the preceding quarter. The company recorded net income of $2.94B, with diluted EPS of $2.30. Quarter-over-quarter revenue has been mixed, typical for a large-cap company operating in Healthcare. Across the four most recent quarters, CVS averaged $0.57 in diluted EPS.
F-Score 7/9Financial Health
CVS Health Corporation's Piotroski F-Score is 7/9, a 9-point checklist of profitability, leverage and efficiency — signaling solid underlying fundamentals. Its Altman Z-Score of 2.45 places it in the grey zone, a middle ground that warrants monitoring.
FY2026 estForward Outlook
Wall Street analysts project CVS Health Corporation revenue of about $408.16B for fiscal 2026, with EPS near $7.42. The estimate reflects 18 contributing analysts.
Net sellingInsider Activity
Over the past six months, CVS Health Corporation insiders filed 30 SEC Form 4 transactions — 15 sales and 15 purchases. On net that is roughly 3.5M shares disposed (about $326.4M), a signal worth weighing alongside the fundamentals.
CVS Financials
Fundamental Snapshot
Based on FMP financials and quantitative analysis · FY 2025
Bull Case vs Bear Case
Bull Case
- Integrated healthcare model with diverse revenue streams.
- Extensive network of retail pharmacies and MinuteClinics.
- Strong brand recognition and customer loyalty.
- Pharmacy benefit management (PBM) expertise.
Bear Case
- Relatively low profit margin.
- High P/E ratio.
- Exposure to regulatory changes in the healthcare industry.
- Dependence on prescription drug sales.
AI-generated arguments based on insider flow, news sentiment and technicals — not financial advice · July 2026
From the Earnings Call
“We are also reaffirming our full year 2026 adjusted EPS guidance range of $7 to $7.20 that we shared at our Investor Day in December.”
— J. Joyner, CEO
“We are updating our outlook for full year cash flow from operations to at least $9 billion.”
— Brian Newman, CFO
CVS Q4 FY2025 earnings call transcript · 2026-02-10
Recent Quarterly Results
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $100.43B | $2.94B | $2.30 |
| Q4 2025 | $105.69B | $2.94B | $2.30 |
| Q3 2025 | $102.87B | -$3.98B | -$3.13 |
| Q2 2025 | $98.92B | $1.02B | $0.80 |
Based on FMP financials and quantitative analysis
CVS Latest News
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UNH, Humana, CVS Soar, and Wall Street Analysts Take Note
benzinga · Jul 4, 2026
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Cigna Brings AI to Specialty Pharmacy With Pharmacy Forward
Yahoo! Finance: CVS News · Jul 2, 2026
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CVS Health (CVS) Stock Looks Fully Valued With Strong Returns And Rich Earnings
Yahoo! Finance: CVS News · Jul 2, 2026
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How Investors Are Reacting To CVS Health (CVS) Earnings Optimism Amid New PBM Scrutiny and Care Initiatives
Yahoo! Finance: CVS News · Jul 2, 2026
CVS Analyst Consensus
Consensus Rating
Aggregated Buy/Hold/Sell recommendations from Benzinga, Yahoo Finance, and Finnhub for CVS.
Price Targets
Consensus target: $96.50
CVS MoonshotScore
What does this score mean?
The MoonshotScore rates CVS's growth potential on a scale of 0-100 across multiple factors including innovation, market disruption, financial health, and momentum.
Latest News
UNH, Humana, CVS Soar, and Wall Street Analysts Take Note
Cigna Brings AI to Specialty Pharmacy With Pharmacy Forward
CVS Health (CVS) Stock Looks Fully Valued With Strong Returns And Rich Earnings
How Investors Are Reacting To CVS Health (CVS) Earnings Optimism Amid New PBM Scrutiny and Care Initiatives
Latest CVS Health Corporation Analysis
Leadership: J. David Joyner
CEO
J. David Joyner is the CEO of CVS Health Corporation, leading a workforce of 300,000 employees. His career spans several leadership roles within the healthcare and retail sectors. Joyner has a strong background in operations, supply chain management, and customer service. He has held executive positions at major retail companies, demonstrating his expertise in managing large-scale organizations and driving operational efficiency. His experience includes overseeing complex supply chains, implementing customer-centric strategies, and driving revenue growth.
Track Record: Since becoming CEO, J. David Joyner has focused on expanding CVS Health Corporation's healthcare services and enhancing its digital capabilities. He has overseen the expansion of MinuteClinic services and the development of new digital health solutions. Under his leadership, CVS has strengthened its position as a leading healthcare provider and innovator. Joyner has also emphasized the importance of customer satisfaction and employee engagement, fostering a culture of collaboration and innovation within the company.
Common Questions About CVS (Healthcare)
What does CVS Health Corporation do?
CVS Health Corporation operates as a diversified healthcare company, providing a wide range of services through its three main segments: Health Care Benefits, Pharmacy Services, and Retail/LTC. The company offers health insurance products, pharmacy benefit management solutions, and retail pharmacy services. CVS manages prescription drug benefits for employers, insurance companies, and government entities. It also operates retail pharmacies and MinuteClinics, providing convenient access to healthcare services and consumer health products. CVS's integrated model allows it to manage costs, improve patient outcomes, and deliver value to customers.
What do analysts say about CVS stock?
Analysts generally view CVS Health Corporation as a stable and well-positioned player in the healthcare industry. The consensus rating on CVS stock is typically a 'Hold' or 'Buy,' reflecting expectations for steady growth and consistent profitability. Key valuation metrics, such as the P/E ratio and dividend yield, are closely monitored by analysts. Growth considerations include the company's ability to expand its healthcare services, manage costs, and navigate regulatory changes. Analyst price targets typically reflect expectations for moderate stock appreciation over the next 12 months. However, analyst opinions and price targets are subject to change based on market conditions and company performance.
What are the main risks for CVS?
CVS Health Corporation faces several key risks, including increased competition in the healthcare industry, regulatory changes and healthcare reform, rising healthcare costs, and economic downturn and reduced consumer spending. The company's dependence on prescription drug sales exposes it to risks related to drug pricing and formulary management. Regulatory changes, such as changes to the Affordable Care Act, could significantly impact the company's business model and financial performance. Rising healthcare costs could put pressure on the company's margins and reduce its profitability. An economic downturn could negatively impact retail sales and reduce consumer spending on healthcare services.
What are the key factors to evaluate for CVS?
CVS Health Corporation (CVS) holds an AI score of 74/100 (high). P/E: 12.3x vs the S&P 500's ~20-25x. Analysts target $96.50 (-8%). Not financial advice.
How frequently does CVS data refresh on this page?
CVS prices update in real time during U.S. market hours. Fundamentals refresh after quarterly filings; analyst ratings and AI insights update daily; news is aggregated continuously.
What has driven CVS's recent stock price performance?
CVS Health Corporation (CVS) moves on earnings results, analyst revisions, sector rotation, and market sentiment. Notable catalyst: Integrated healthcare model with diverse revenue streams. See the News tab for the latest drivers. Past performance does not predict future results.
Should investors consider CVS overvalued or undervalued right now?
CVS Health Corporation (CVS) trades at 12.3x earnings. Analysts target $96.50 (-8%) — near fair value. Compare P/E, P/S, and EV/EBITDA against sector peers for a full view.
What research should beginners do before buying CVS?
Before investing in CVS Health Corporation (CVS), research these four areas: (1) the company's revenue model and competitive position (see Company Overview), (2) financial health through revenue growth, margins, and cash flow (see MoonshotScore), (3) what Wall Street analysts recommend and their price targets (see Analyst tab), and (4) specific risk factors that could impact the stock (see Risk Factors section).
Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.
Official Resources
Data provided for informational purposes only.
- The information provided in this dossier is based on publicly available information and is intended for informational purposes only. It is not intended as investment advice.
- The analyst has no financial interest in CVS Health Corporation or any of its competitors.