By Sneha S K and Amina Niasse
Dec 9 (Reuters) – CVS Health expects 2026 profit to beat Wall Street estimates and this year’s projected earnings, it said on Tuesday, signalling steady progress in the health conglomerate’s turnaround plan.
The company has delivered on its promises this year and will now focus on improving consumer experiences across the business, Chief Executive David Joyner said during the CVS investor day.
“We’ve invested heavily in what I would believe is the challenge in the marketplace, which is a lack of trust,” he added.
CVS also announced the launch of a consumer app that is meant to increase and integrate its services, potentially driving new sources of revenue for its partners.
Shares in CVS, which operates one of the largest U.S. pharmacy chains, rose 4.8% to $80.17 in morning trading after the company also raised its 2025 profit outlook for the fourth time.
The upbeat outlook caps a year in which Joyner pushed through a sweeping overhaul, including cost-cutting measures and withdrawals from underperforming markets while strengthening management to revive investor confidence. The shares have responded with gains of more than 70% this year.
“We are closing out 2025 with meaningful momentum across our businesses and we expect another year of strong earnings growth in 2026,” Chief Financial Officer Brian Newman said on Tuesday.
The company forecast 2026 adjusted profit in the range of $7.00 to $7.20 per share, compared with analyst expectations of $7.16, according to data compiled by LSEG.
PROFIT BEATS EXPECTATIONS, REVENUE LAGS
Total revenue, however, is pegged at up to $400 billion next year, below the $419.26 billion expected by analysts.
The company expects growth to be powered by a return to target margins at its Aetna insurance business as well as the CVS Caremark pharmacy benefit management unit.
CVS said in May that 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.
The company raised its 2025 adjusted profit forecast to between $6.60 and $6.70 per share, up from the previous projection of $6.55 to $6.65.
“CVS’ near-term momentum should set the stage for what remains a robust growth recovery story,” Leerink Partners analysts said in a note.
(Reporting by Sneha S K in Bengaluru and Amina Niasse in New York CityEditing by Shinjini Ganguli, David Goodman and Louise Heavens)
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