CVS Health Corporation (CVS) AI Stock Analysis

CVS Health Corporation provides healthcare services across the United States through three segments: Health Care Benefits, Pharmacy Services, and Retail/LTC. The Health Care Benefits segment offers health insurance products to employer groups, individuals, and college students, covering traditional, voluntary, and consumer-directed options. The Pharmacy Services segment manages pharmacy benefit programs, including plan design, formulary management, specialty pharmacies, mail-order services, and clinical management. The Retail/LTC segment operates CVS Pharmacy retail locations offering prescriptions, health and beauty products, MinuteClinic walk-in medical clinics, and pharmacy services to long-term care facilities.

Annual revenue expanded from $292.11B in FY2021 to $402.07B in FY2025, reflecting a 5-year revenue CAGR of 8.4%. Operating margin contracted from 4.6% in FY2021 to 2.6% in FY2025, while gross margin declined from 17.8% to 13.8%. Net income fell from $8.00B in FY2021 to $1.77B in FY2025, bringing net margin down from 2.7% to 0.4%. Free cash flow reached $7.81B in FY2025, down from $15.74B in FY2021. For the quarter ending June 30, 2026, quarterly revenue grew 7.1% year-over-year, and quarterly earnings grew 188.8%, with trailing twelve month revenue reaching $412.64B.

As of June 30, 2026, CVS held $13.96B in cash and short-term investments against $76.31B in total debt, resulting in net debt of $62.35B. Total assets stood at $253.77B and shareholders' equity was $79.70B, with a debt-to-equity ratio of 0.96 and a current ratio of 0.87. In FY2025, operating cash flow was $10.64B. Cash uses included $2.83B for capital expenditures and $3.40B in dividends paid, while share issuance contributed $394.0M. The 5-year share count change was -4.0%.

At $92.36, CVS trades at a trailing P/E of 24.3x and a forward P/E of 10.7x, both below the median of its S&P 500 Healthcare peers at 28.9x and 16.6x, respectively. Its price-to-sales multiple of 0.3x and EV/EBITDA of 13.3x are also lower than the peer group medians of 3.4x and 15.7x. Over the past year, CVS gained 17.1%, outperforming the S&P 500 SPY return of 16.8%. However, its 5-year return of 27.0% lags the index return of 83.0%.

CVS pays a forward annual dividend of $2.66 per share, providing a 2.88% dividend yield with a payout ratio of 33.9%. Dividends are distributed quarterly and have been paid for 42 consecutive years. The annualized 5-year dividend growth rate is 5.9%, and the most recent ex-dividend date was October 22, 2026.

Wall Street sentiment includes 18 Strong Buy, 7 Buy, and 2 Hold ratings, with 0 Sell or Strong Sell recommendations. The mean price target of $115.48 implies a 25.0% upside compared to the last close of $92.36. For the fiscal year ending December 31, 2026, consensus estimates project EPS of $8.04 and revenue of $418.04B. The company beat EPS estimates in each of the last 4 quarters, and the next earnings date is November 4, 2026.

This page is an AI-written research summary of CVS Health Corporation (CVS). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

Related: CVS income statement, CVS balance sheet, CVS key metrics, CVS analyst forecast, CVS chart. See the CVS stock overview for the latest quote and news.