CVS Health<\/a> on Tuesday forecast 2026 profit above Wall Street estimates and this year’s projected earnings, signalling steady progress in the health conglomerate’s turnaround plan.<\/p>\nShares of CVS, which operates one of the largest U.S. pharmacy chains, rose 2.4% to $78.38 in premarket trading, after the company also raised its 2025 profit outlook for the fourth time.<\/p>\n
The upbeat outlook caps a year in which CEO David Joyner pushed through a much-needed and sweeping overhaul, including cost-cutting measures, exits from underperforming markets and strengthening top management to revive investor confidence.<\/p>\n
The efforts have helped restore investor confidence in the company, with CVS shares surging 70.5% so far this year.<\/p>\n
“We are closing out 2025 with meaningful momentum across our businesses and we expect another year of strong earnings growth in 2026,” said Chief Financial Officer Brian Newman on Tuesday.<\/p>\n
The company forecast 2026 adjusted profit to be in the range of $7.00 to $7.20 per share, compared with analysts’ average estimate of $7.16, according to data compiled by LSEG.<\/p>\n
It, however, expects total revenue of at least $400 billion next year, below analysts’ average estimate of $419.26 billion.<\/p>\n
The company expects the growth to be powered by return to target margins at its Aetna insurance business as well as CVS Caremark pharmacy benefit management unit.<\/p>\n
In May, CVS said it plans to exit the market for Obamacare health insurance plans in 2026. Health insurers have struggled with increasing medical costs in these plans in recent quarters.<\/p>\n
The company raised its 2025 adjusted profit forecast to $6.60 to $6.70 per share from $6.55 to $6.65 previously.<\/p>\n
“CVS’ near-term momentum should set the stage for what remains a robust growth recovery story,” Leerink Partners analysts said in a note.<\/p>\n
The company will host an investor day later on Tuesday.<\/p>\n","protected":false},"excerpt":{"rendered":"A shopper arrives at a CVS Health Corp. store in Rock Island, Illinois, U.S., on Tuesday, Aug. 7,…\n","protected":false},"author":3,"featured_media":435722,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[35],"tags":[9167,81,9164,210,1141,9166,1142,11731,9159,67,132,68],"class_list":{"0":"post-435721","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-health-care","8":"tag-breaking-news-business","9":"tag-business-news","10":"tag-cvs-health-corp","11":"tag-health","12":"tag-health-care","13":"tag-health-care-industry","14":"tag-healthcare","15":"tag-retail-industry","16":"tag-social-issues","17":"tag-united-states","18":"tag-unitedstates","19":"tag-us"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@us\/115689967277017573","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts\/435721","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/comments?post=435721"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts\/435721\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/media\/435722"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/media?parent=435721"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/categories?post=435721"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/tags?post=435721"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}