AI-extracted from the 10-Q filed 2026-08-05 — Q2 FY2026 (quarter ended June 30, 2026). Every figure is machine-verified against the filing text on SEC EDGAR.
CVS Health reported Q2 revenue of $106.1B, up 7.3% YoY, with operating income nearly doubling to $4.7B, driven by improved Health Care Benefits performance and absence of prior-year litigation charges.
Biggest Revenue Drivers
Products$66.2B+9.3% YoY
Pharmacy drug mix, brand inflation and increased prescription volume, partially offset by pharmacy client price improvements and regulatory-related price reductions.
Premiums$35.1B+2.7% YoY
Increase in Government business, partially offset by exit of individual exchange business in 2026.
Biggest Revenue Drivers
Total revenue: $106.1B+7.3% YoY
Products$66.2B+9.3% YoY
Pharmacy drug mix, brand inflation and increased prescription volume, partially offset by pharmacy client price improvements and regulatory-related price reductions.
Premiums$35.1B+2.7% YoY
Increase in Government business, partially offset by exit of individual exchange business in 2026.
Services$4.1B+13.6% YoY
Growth across segments supporting increased volume and health care delivery services.
Net investment income$641M+31.6% YoY
Increased income from private equity and equity fund investments and higher average fixed income investments.
Largest Expense Items
Cost of products sold$58.9B+9.0% YoY
Increase proportional to product revenue growth.
Health care costs$31.5B+0.5% YoY
Medical benefit ratio improved to 87.4% from 89.9% YoY due to better Government business performance and absence of premium deficiency reserves.
Operating expenses$11.0B-1.5% YoY
Absence of $833M in legacy litigation charges from prior year, partially offset by business investments and Rite Aid acquisition operating costs.
Margins: Operating margin expanded significantly, with operating income increasing 97.5% YoY, primarily due to improved underwriting in Health Care Benefits and elimination of prior-year one-time charges. MBR improved 250 basis points to 87.4%, reflecting strong Government business execution.
Watch Items from the Filing
Elevated utilization levels persisted in Q2 2026 and may pressure Health Care Benefits and health care delivery businesses if sustained above current levels throughout 2026.
Opioid litigation accrual of approximately $3.4B remains as of June 30, 2026, with significant uncertainty regarding ultimate loss due to settlement contingencies and ongoing non-participating state litigation.
Proposed settlement with FTC announced July 2026 to resolve all outstanding PBM investigations, pending public comment and final order approval; significant regulatory risk in PBM operations.
U.S. ex rel. Bassan v. Omnicare case: CVS liable for $165M of $542M penalties; July 2026 agreements with DOJ reduce exposure but require $130M payment and potential guarantee of additional payments through March 2028.
AI-extracted and verified against SEC EDGAR filing text. Not investment advice.
Decoudreaux Alecia ADirectorGrant or award · May 14, 2026
Sansone Guy PDirectorGrant or award · May 14, 2026
Congress trading in CVS
77 transactions in CVS reported by 33 members of Congress under the STOCK Act, most recent trade Jan 29, 2026. Reported transactions, not recommendations.
About CVS HEALTH Corp (CVS): stock profile, AI score and financials
CVS HEALTH Corp (CVS) stock profile, AI quality score, and SEC EDGAR financial data, a Healthcare sector company. 13F Pro's AI-powered ranking engine scores CVS at 59.0/100 on a composite quality score built from its SEC filings, placing it at rank #966 of 2,925 stocks — the top half of the AI-ranked universe. CVS scores in the top quartile across revenue scale (99.7), earnings quality (90.5). Areas of concern include free cash flow (35.4) and profitability (37.5), which score below median versus the broader universe. Based on the latest XBRL financial filings (Q2 2026), CVS HEALTH Corp reports quarterly revenue of $106.1B, net income of $3.0B, an operating margin of 4.4%. Top institutional holders of CVS by reported 13-F value include BlackRock, VANGUARD CAPITAL MANAGEMENT, Capital World Investors, based on the most recent SEC filings. CVS trades on the NYSE exchange and files with the SEC under CIK 64803. 13F Pro's AI research platform runs 10 specialized AI analysts — value, growth, momentum, macro, and activist specialists — that debate CVS daily and publish AI-generated analysis with cited SEC sources. The platform aggregates historical XBRL financial facts, 10-Q and 10-K filings, insider Form 4 transactions, and institutional 13-F holdings for CVS HEALTH Corp directly from SEC EDGAR.