CVS Health Corp

CVS Health delivered a stronger-than-expected fourth quarter, posting adjusted EPS of $1.09 against the $1.00 consensus estimate for a 9% beat, while revenue climbed 8.2% year-over-year to $105.69 billion, topping the $103.60 billion forecast. The headline numbers, however, tell only part of the story; <a href="https://247wallst.com/investing/2026/02/10/the-cvs-earnings-bombshell-that-has-investors-scrambling-right-now/">the quarter's underlying pressures</a> were most visible in the Health Care Benefits segment, which posted an adjusted operating loss of $676 million as Medicare Part D seasonality shifts under the Inflation Reduction Act weighed heavily on margins. Partially offsetting that drag, the Pharmacy and Consumer Wellness segment was a standout, with revenue rising 12.4% to $37.66 billion and same-store prescription volume surging 9.7%. GAAP diluted EPS jumped to $2.30 from $1.30, aided by a roughly $1.90 billion tax benefit tied to the Omnicare bankruptcy. Looking ahead, CVS guided for 2026 adjusted EPS of $7.00 to $7.20, though it trimmed its operating cash flow outlook to at least $9.00 billion from a prior target of at least $10.00 billion, a revision investors will be watching closely.