CVS US S&P 500Russell 1000 Earnings call · transcribed from the recording
CVS Health (CVS) · Q3 2026 results and valuation
Share price: $89.52 · 2026-11-11
CVS Health is a health solutions company that provides health insurance products, pharmacy benefits management, and medical clinics. It serves individuals, employer groups, and government-sponsored programs through its integrated healthcare services and retail locations in the United States. Source: 10-K annual report (2026-02-10)
Results Q3 2026 vs Q2 2026 · previous quarter · published 4 Nov 2026 and 5 Aug 2026
Net income down 27.5% on the previous quarter, guidance raised. Management sounded upbeat, in its script and in answers to analysts.
Only a basic analysis is available for this company at the moment.
1 · Numbers
−27.5%
Net income vs Q2 2026
Guidance raised
Net income 2.17B vs 3.00B
Revenue +2.2%
2 · How management spoke
Upbeat
More upbeat than 74% of company calls
Answers to analysts: typical, in line with the script.
Similar to last call.
3 · What stood out
Key theme
This quarter, CVS Health generated adjusted operating income of $4.2 billion and adjusted earnings per share of $2.09.
Valuation
Is CVS Health undervalued?
Reverse DCF on net income from the last full fiscal year (no meaningful free cash flow: a bank, insurer or a year of negative cash flow) (2025-12-31), grown for 10 years, discounted back, plus a terminal value. “Implied growth” is the rate the current price assumes.
At 7.6% growth a year (3-year revenue growth), the model's fair value is $27.48 a share — the stock trades 226% above it. Today's price assumes 23.8% growth a year.
Current price
$89.52
close of 2026-11-11
Market implies growth of iThe yearly free-cash-flow growth, for the next 10 years, that today’s share price already assumes. If you believe the company grows faster than this, the stock is cheap under this model; slower, and it is expensive.
+23.8% for 10 yrs
Fair value / share
$27.48
Buy below
$20.61
Price vs fair value
Overvalued >200%
Price vs buy-below price
Overvalued >200%
Read between the lines
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Guidance ↑
CVS Health onces again delivered on its commitments and raised its full-year outlook for revenue, adjusted EPS, and cash flow from operations.
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Guidance ↑
Shifting now to its guidance for 2026, CVS Health is increasing its full-year 2026 guidance for adjusted EPS to at least $8.20, an increase of 20 cents from the midpoint...
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Guidance
CVS Health is also updating its full year expectation for cash flow from operations to at least $15.5 billion.
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Fading
AI and technology is moving in a way that CVS Health believes it is moving from a consumer-based health care company to a consumer-based health care technology business.
Source quote
“AI and technology is moving in a way that we believe we're moving from a consumer-based health care company to a consumer-based health care technology business. So we believe we're at an inflection point. And we think the technology is going to be at the center of the core of our differentiation and our value proposition.”
Tone
How upbeat the language was, compared with other companiesiTone counts positive minus negative finance words, adjusted for length. Executives mostly speak positively, so the labels compare each call with every company's latest call: “typical” is the middle third, “very upbeat” the top tenth, “cautious” the bottom tenth.. Dot: Q3 2026. Ring: Q2 2026.
Script and answers carried a similar tone, so the script's message held up under questioning.
Sentences that drove the tone
“Both companies will be led by experienced leadership teams, have a clear right to win in their respective markets, and we expect we'll be supported by solid investment-grade balance sheets,...”
“Each company will have greater flexibility to adopt the technologies that best fit its needs, improve efficiency, and more effectively adapt to the regulatory and other external dynamics.”
“We believe this separation will accelerate the adoption and development of Health 100 and allow us to drive innovation, improve connectivity, and unlock greater value across both companies.”
Full figures
USD · SEC EDGAR XBRL (10-Q, period end 2026-09-30)
| Metric | Q3 2026period end 2026-09-30 | Q2 2026period end 2026-06-30 | Change | Q3 2025 | YoY |
|---|---|---|---|---|---|
| Revenue | 108.40B | 106.10B | +2.2% | 102.87B | +5.4% |
| Gross profit | 47.21B | 47.23B | ±0% | 45.83B | +3.0% |
| Operating income | 3.57B | 4.70B | −24.2% | -3.21B | Turned profit |
| Net income | 2.17B | 3.00B | −27.5% | -3.98B | Turned profit |
| EPS | 1.68 | 2.31 | −27.3% | -3.13 | Turned profit |
| P/E today 9.7 | 10.0 | 27.3 | −17.3 | 198.4 | −188.4 |
Topics
Most discussed now
- Both companies will be led by experienced leadership teams, have a clear right to win in their respective markets, and...
- The second company will be a leading national retail pharmacy and community healthcare company.
- New It's why the mail service is actually inside of CVS Pharmacy, because CVS Health has reinvented how pharmacy is delivered.
- Yeah i i would just i was thinking back to investor day and CVS Health set out a road map which...
- The first will be a healthcare solutions company that brings together medical, pharmacy, specialty, and care delivery capabilities…
Top topics in Q2 2026
- Nothing dropped away.
Latest announcements
Official filings, newest first. Summaries are generated from each filing and its attachment; every figure is checked against the source.
- Regulation FD disclosure · SEC 8-K
- Results of operations · SEC 8-K
- Director or officer change; Regulation FD disclosure · SEC 8-K
CVS Health announced the appointment of Teresa Heitsenrether to the Board effective November 18, 2026, and the resignation of Larry Robbins, who served on the Board since 2024.
- Results of operations · SEC 8-K
CVS Health reported second-quarter revenues of $106.1 billion, up 7.3% year-over-year, with GAAP diluted EPS of $2.31 compared to $0.80 in the prior year.
- Director or officer change; Shareholder vote results · SEC 8-K
CVS Health Corporation stockholders approved the 2026 Incentive Compensation Plan and elected 13 nominees to the Board of Directors at the Annual Meeting on May 14, 2026.
- Results of operations · SEC 8-K
CVS Health reported first-quarter revenues of $100.4 billion, up 6.2% year-over-year, with GAAP diluted EPS of $2.30 compared to $1.41 in the prior year.
- Director or officer change · SEC 8-K
CVS Health Corporation elected John E. Gallina to its Board of Directors and the Audit Committee, effective March 19, 2026.
- Results of operations · SEC 8-K
CVS Health Corporation reported total revenues of $402.1 billion for the full year 2025, an increase of 7.8% compared to the previous year.