CVS Q4 earnings beat: A breakdown of the revenue & more

Yahoo Finance Video and Julie Hyman

Wed, February 11, 2026 at 12:58 AM GMT+9

In this video:

CVS

+0.83%

CVS (CVS) stock is on the rise after the company posted fourth quarter earnings and revenue that beat Wall Street’s estimates and reiterated its 2026 profit outlook.

Market Catalysts host Julie Hyman discusses the earnings print, outlines her conversation with CVS CFO Brian Newman, and more.

To watch more expert insights and analysis on the latest market action, check out more Market Catalysts.

Video Transcript

00:00 Speaker A

CVS shares are rising, up a little more than 2% after the company reiterated its profit guidance for 2026 and posted strong fourth quarter performance. Now, I had a conversation with the company’s chief financial officer, Brian Newman on the phone. and the company’s forecast for the full year is $7 to $7.20. $717 is what analysts have been predicting. And initially we saw the shares pulled back a little bit before this recent this uh recovery

00:25 Speaker A

that we have now been seeing. He gave a little bit of color on that forecast and he basically says his uh priority is to give guidance that’s credible and clear with the opportunity for out performance. And so perhaps there’s a little bit of upside that some analysts are now uh expecting and baking into that. The company also changed its cash forecast for this full year to $9 billion. He says that has to do the with the timing of some government payments. I also want to talk

00:55 Speaker A

a little bit about the three main business lines for CVS because it is such an enormous company and does have a lot of different business lines. So, there’s the healthcare benefits, that includes Aetna, the insurance company. Revenue there rose by 10% uh to about $36 billion. Health Services, which is their pharmacy benefit manager, CVS Caremark and Oak Street, which is a medical provider. Revenue there rose by 9% to just about $51 billion. And then pharmacy and consumer wellness and that includes

01:28 Speaker A

the CVS pharmacies that you go into. That revenue was up 12.4%. And that is really an area of the company that has seen a comeback. Um they’ve been investing in employees and staffing, they’ve been investing in technology, um and they also of course bought some right aid prescriptions that they’ve transferred over to CVS. So that all has helped the numbers. One of the big um questions hanging over the company now is what’s going to happen with Medicare advantage, which has been a driver

01:57 Speaker A

of that insurance, that business at uh in the and in the health insurance division because as you know, and as we’ve reported, uh Medicare advantage, the reimbursement rates for 2027 were just announced and they weren’t as high as basically anyone had expected. So I asked Brian Newman about that and what the company planned to do about it. and he said, I don’t think it reflects medical cost trends. I think we’re hoping CMS, the centers for Medicare Medicare Services

02:27 Speaker A

will address some of the misalignment and we are already submitting our comments to CMS to hopefully improve the policies and how they think about that. Now, the next, it’s not a done deal this 2027 rate increase. CMS is scheduled to um to publish another update in April, potentially taking into effect not just CVS’s objections, but the industry more broadly. So we’ll see if uh that ends up being any kind of change, but that’s been an overhang on CVS and any other insurer that is

02:54 Speaker A

exposed to Medicare advantage. So watch this space.

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