CVS Health Corp

CVS Health is trading near $94, a 19% discount to the $116.28 average analyst price target and roughly 50% below the $141.05 base-case one-year target in 24/7 Wall St.'s own valuation model. Management raised full-year 2026 adjusted EPS guidance to a range of $7.90 to $8.10 from $7.30 to $7.50 and lifted operating cash flow guidance to at least $11.5 billion. Second-quarter 2026 adjusted EPS of $2.58 beat consensus by 37.97%, and Aetna's medical benefit ratio improved to 87.4% from 89.9%. Full-year 2026 consensus EPS has drawn 22 upward analyst revisions and zero downward revisions over the trailing 30 days. The bull case rests on Aetna's margin recovery proving durable, while PBM re-regulation, 340B pressure, and drug pricing rules remain the sharpest threats to the thesis. The next checkpoint is third-quarter 2026 earnings, expected November 4, 2026, a date not yet confirmed by the company.

CVS Health announced the rollout of updated 2026 to 2027 COVID-19 vaccines across its CVS Pharmacy and MinuteClinic locations. The vaccines are positioned for broad availability through the company's nationwide network of retail pharmacies and in-store clinics, which CVS Health framed as part of its role in supporting ongoing COVID-19 management and wider public health efforts. The US-based healthcare group, which carries a reported market value of about $121.1b, uses those pharmacies and clinics to distribute vaccines and other preventive services that feed into its broader health solutions offering. The rollout keeps CVS Health aligned with a value-based, preventive care narrative rather than rewriting it, as making updated COVID, flu, RSV and routine shots available in a single visit leans into the company's push to use its clinics and pharmacies as an entry point into its wider health solutions. The real proof point will come through disclosed vaccination volumes and related pharmacy script trends in upcoming quarters, especially any commentary from CVS Health at events such as the Wells Fargo healthcare conference on how multi-vaccine appointments are feeding into its wider care delivery and insurance ecosystem.

CVS Health's Health Services segment posted second-quarter 2026 revenues of $51.80 billion, up 11.5% year over year, while adjusted operating income rose 10% to $1.73 billion. The company reiterated its full-year 2026 adjusted operating income outlook despite updating its view of the 340B program, supported by performance across the broader Pharmacy Services business. The 2026 selling season generated more than $6 billion in new sales, well above the company's historical average, and Caremark's Humira biosimilar strategy has delivered more than $1.8 billion in client savings. Health Care Delivery revenues rose nearly 23% year over year in the quarter, primarily driven by Oak Street Health, as CVS makes technology infrastructure changes, refines payer contracts and adopts a more selective clinic footprint. For comparison, UnitedHealth's Optum health services business reached $129.4 billion in the first half of 2026, and Elevance Health's Carelon posted first-half 2026 revenues of $37.2 billion, up 7.1% year over year.

Elevance Health ranked as the highest-rated national health insurer in UBS's annual survey of employee-benefit managers, scoring 4.34 out of five, ahead of UnitedHealth Group at 4.23 and Kaiser Permanente at 4.20. UBS analysts led by A.J. Rice surveyed 166 benefits managers at companies with more than 100 employees, and found that about 77% of respondents plan to seek new proposals for all or a significant portion of their core medical benefits for 2027, up from 53% in last year's survey and 41% a year earlier. Aetna and Blue Cross Blue Shield plans outside Elevance had the greatest exposure to rebidding at 90%, followed by Cigna and Elevance, while UnitedHealth had the lowest exposure among the major carriers. Employers expect gross medical costs for self-insured plans to rise 7.9% in 2027, accelerating from an estimated 7% this year, with benefit design changes trimming about 0.3 percentage point to leave a net cost trend of approximately 7.5%. Among pharmacy-benefit managers, 92% of respondents said their PBM contracts are due for renewal in 2027 and about 65% plan to issue requests for proposals, more than double the 30% recorded last year, yet CVS Caremark, Cigna's Express Scripts and UnitedHealth's Optum Rx were the three most frequently cited as likely to improve their market positions. The survey also found that 91% of employers now cover newer obesity medicines, up from 52% last year, and UBS estimated that 19.1% of covered workers and dependents use GLP-1 medicines for obesity, a figure respondents expect to rise to 20.6% next year.

Walgreens is closing roughly 1,200 of its approximately 8,500 U.S. locations through 2027, a retreat that is quietly handing suburban pharmacy customers to CVS. The closures accelerated after Walgreens completed a $10 billion sale to private equity firm Sycamore Partners in August 2025, taking the 124-year-old chain private for the first time; Mike Motz was named chief executive, replacing Tim Wentworth, who stays on as a director, and John Lederer became executive chairman. Company leadership has blamed shrinking pharmacy reimbursement rates, weaker retail traffic, and competition from Amazon Pharmacy for the decision, saying roughly a quarter of stores no longer fit the chain's strategy. CVS, which owns the pharmacy benefit manager Caremark, has not needed a marketing campaign to gain ground, and CVS and Walgreens together now handle nearly 40% of all U.S. retail prescription sales. CVS posted more than $106 billion in revenue and adjusted operating income of roughly $5.2 billion in its second-quarter 2026 results, up more than 35% from a year earlier, and raised its full-year 2026 adjusted earnings per share guidance to a range of $7.90 to $8.10. Walgreens has committed to continuing closures through 2027, with roughly 100 more expected before the end of 2026, while CVS is opening small-format stores, folding in leftover Rite Aid real estate, and leaning into GLP-1 access through new partnerships with Eli Lilly and Novo Nordisk.

CVS Health raised its 2026 adjusted operating income outlook for its Pharmacy & Consumer Wellness segment by $220 million to at least $6.4 billion, citing higher prescription volumes and better pharmacy economics. In the second quarter of 2026, adjusted operating income for the segment rose 10.2% year over year to $1.48 billion, same-store prescription volume climbed 7%, and prescriptions filled increased 4.3% on a 30-day equivalent basis, while the segment's gross margin improved to 19.3% from 17.9% a year earlier. The company is also expanding access to GLP-1 therapies through its pharmacy network, MinuteClinic services and cash-pay options, and in July 2026 began the targeted launch of Health100, including Haio, its AI-powered health assistant, while Aetna launched a second-generation Claims Assist Manager that management expects to cut processing time by more than 20% for complex claims requiring manual review. CVS shares have gained 32.9% over the past year, outpacing UnitedHealth Group's 13% rise and Cigna Group's 8% decline, and the stock trades at a forward five-year price-to-sales of 0.29X versus an industry average of 0.53X. The company still faces reimbursement pressure, an insufficient 2027 Medicare Advantage payment update in management's view, and regulatory scrutiny, including challenges to pharmacy ownership laws in Arkansas and Tennessee. The Zacks Consensus Estimate implies 2026 sales growth of 3.8% and EPS growth of 18.1% year over year.

Jim Cramer advised investors to own CVS Health Corporation rather than trade it, citing the company's raised guidance, higher price targets, and massive capital plan. CVS Health reported second-quarter revenue of $106.1 billion, up 7.3% year over year, with adjusted EPS rising to $2.58 from $1.81. Management raised 2026 adjusted EPS guidance to $7.90-$8.10 from $7.30-$7.50 and increased operating cash flow guidance to at least $11.5 billion from $9.5 billion. The Health Care Benefits segment's medical benefit ratio improved to 87.4% from 89.9%, and adjusted operating income surged 85.5% to approximately $2.43 billion. However, CVS expects Caremark membership to decline in 2027 as it shifts to lowest net cost pricing, and 340B pressure remains a headwind. The company repaid $3.29 billion of long-term debt in the first half of 2026 and did not repurchase shares.

CVS Health reported second-quarter 2026 adjusted earnings per share of $2.58, up 42.5% year over year and beating the Zacks Consensus Estimate by 37.97%, while revenues rose 7.3% to $106.10 billion, surpassing expectations by 5.91%. The company raised its full-year 2026 adjusted earnings guidance to $7.90-$8.10 per share from $7.30-$7.50, and lifted its revenue outlook to at least $414 billion from at least $405 billion. Management also increased its cash flow from operations forecast to at least $11.5 billion from at least $9.5 billion, citing improved expectations for the Health Care Benefits and Pharmacy & Consumer Wellness segments. Since the earnings report, shares have gained about 1%, outperforming the S&P 500, but estimates have trended downward by 6.08% over the past month. CVS Health holds a Zacks Rank #3 (Hold) with a VGM Score of A.

CVS Health is building momentum in its Pharmacy and Consumer Wellness segment, which generated nearly $34 billion in second-quarter revenues and raised its full-year adjusted operating income guidance to at least $6.4 billion, up $220 million from prior guidance. The segment, which includes nearly 9,000 retail locations, benefited from the acquisition of prescription files from 626 former Rite Aid and Bartell Drugs pharmacies, adding more than nine million patients. Same-store pharmacy sales grew approximately 3%, while adjusted operating income rose more than 10% to nearly $1.5 billion, despite headwinds from regulatory-related drug price reductions and pharmacy reimbursement pressure. In related peer updates, DaVita announced a value-based care agreement with Humana for chronic kidney disease patients, and Cardinal Health agreed to acquire two businesses for roughly $360 million in cash. CVS shares have risen 31.1% over the past year, and the company holds a Zacks Rank #3.

CVS Health shares have climbed more than 18% year to date, outpacing the S&P 500's sub-13% gain, and Wall Street analysts see further upside with a consensus price target of $114.59 per share, about 22% above the latest close. The company beat adjusted earnings estimates in both the first and second quarters, posting $2.57 per share versus a $2.21 consensus in Q1 and $2.58 versus $1.83 in Q2, while raising full-year guidance each time. A sharp improvement in the medical benefit ratio at its Aetna-led healthcare benefits segment, which fell from 94.8% in the fourth quarter of 2025 to 84.6% in Q1 and 87.4% in Q2, drove adjusted operating income up 52% year over year to over $3 billion in the first quarter and 85% to $2.4 billion in the second. Sixteen of 17 analysts tracked by TipRanks rate the stock a buy, with UBS's Kevin Caliendo lifting his price target to $126 from $122 after the second-quarter report.

Falling prescription drug prices dragged Walmart's U.S. comparable sales down 80 to 90 basis points, masking what would otherwise have been roughly 3.4% growth. Target's 3.8% comparable sales outpaced Walmart's 2.6% because it sold its pharmacy business to CVS for $1.9 billion in 2015, sidestepping drug-price deflation entirely. Walmart's transaction growth slowed to 1.5% from 3%, signaling lower-income shoppers are making fewer trips even as higher-income consumers trade down to Walmart.

CVS Health raised its 2026 earnings and cash-flow outlook after second-quarter adjusted earnings rose 42.5% to $2.58 per share and revenues increased 7.3% to $106.10 billion. The company lifted its 2026 adjusted EPS guidance to $7.90-$8.10 from $7.30-$7.50, with consolidated revenues of at least $414 billion and adjusted operating income of $16.58-$16.92 billion. Expected cash flow from operations rose to at least $11.5 billion from at least $9.5 billion. The Aetna Health Care Benefits segment drove the improvement, with second-quarter adjusted operating income up 85.5% to $2.43 billion and its medical benefit ratio improving to 87.4% from 89.9%. CVS also raised that segment's 2026 adjusted operating income outlook to $5.03-$5.37 billion, more than $1 billion above prior guidance, while management cautioned that the medical benefit ratio is expected to rise materially through the second half and that 2027 pharmacy-services headwinds remain.

CVS Health is expanding its consumer health care technology initiatives, including the targeted launch of its Health100 platform and an AI-powered assistant called Haio. The company committed last year to invest $20 billion over the next decade in emerging technologies to simplify the health care experience and improve customer engagement. CVS expects to expand access to the platform later this year following encouraging early feedback. The company also launched an AI-enabled claims assist manager expected to reduce processing time by more than 20% and accelerate payments for providers on hundreds of millions of claims annually. CVS shares have risen 19.6% year to date, compared with the industry's 1.2% growth, and the stock carries a Zacks Rank #2 (Buy).

CVS Health is rolling out new digital tools for its pharmacy benefit manager clients to manage pharmacy benefits and monitor prescription spending, citing a new CVS Caremark survey showing employers have higher trust in PBMs to manage drug costs and access to complex treatments. The company is also expanding coverage for biosimilars and GLP-1 therapies across its pharmacy network with a focus on affordability, aiming to support employers and payers facing rising specialty drug spending. The rollout follows second-quarter 2026 results that showed revenue of US$106.10 billion and net income of US$2.98 billion, along with an increase in 2026 GAAP diluted EPS guidance to a range of US$6.84 to US$7.04. Investors will watch for PBM client retention, GLP-1 prescription trends, and any revision to the 2026 earnings guidance or the revenue outlook of at least US$414.0 billion.

CVS Health announced a revamp of its weight management program to improve access, affordability, and support for GLP-1 medications. The company is collaborating with Eli Lilly and Company to provide eligible Zepbound and Foundayo patients an additional access point at CVS Pharmacy through the CVS Health app, with transparent pricing including cash-pay options expected by early fourth quarter of 2026. CVS Pharmacy offers all FDA approved GLP-1s, and MinuteClinic digital weight loss visits have been lowered to $29, the most affordable option in the market, available 24/7 with no membership or recurring monthly fee. The program combines an online visit with a licensed clinician, same-day medication pickup at 9,000 local CVS Pharmacy locations, and in-person pharmacist support in one connected experience. CVS Pharmacy also participates in the Centers for Medicare & Medicaid Services Medicare GLP-1 Bridge program, which runs through December 31, 2027, offering eligible Medicare beneficiaries certain GLP-1 medications for $50 per month.

UnitedHealth Group reported second-quarter results showing its medical care ratio fell to 86.7% from 89.4% a year ago, helping operating earnings rise 55% and prompting the company to raise its 2026 adjusted EPS guidance. The quarter included $860 million of favorable prior-period medical development, while commercial medical costs are increasing at a rate exceeding 11% due to higher provider billing and coding intensity and specialty drug costs. Elevance Health's second-quarter benefit expense ratio was 89.7%, up 80 basis points year over year, but the company raised its 2026 adjusted EPS guidance to at least $27. CVS Health's Aetna business benefited from lower medical costs in the second quarter, leading to an earnings beat and raised 2026 adjusted EPS guidance of $7.90 to $8.10. UnitedHealth shares have risen 47.9% in the past 12 months, and the stock trades at a forward price-to-earnings ratio of 18.83X compared with the industry average of 16.48X.

CVS Health reported second quarter 2026 adjusted earnings per share of $2.58, exceeding expectations and prompting the company to raise its full-year adjusted EPS guidance by $0.60 to a range of $7.90 to $8.10. The company also increased its full-year cash flow from operations outlook to at least $11.5 billion, up $2 billion from prior guidance. Adjusted operating income rose 35% year over year to $5.2 billion, with all operating segments growing earnings. CVS Health also provided preliminary 2027 commentary, stating that an adjusted EPS of at least $8.44 appears reasonable, representing about 13% growth off an adjusted baseline of $7.46.

Eighty-six percent of S&P 500 companies that have reported quarterly results so far beat earnings-per-share estimates, while 79% posted year-over-year profit growth. Out of 133 reporting firms, 114 topped consensus EPS forecasts, 15 fell short, and 4 met expectations, with 105 delivering higher earnings than a year ago. On the revenue side, 97 companies exceeded sales projections and 36 missed, while 110 achieved year-over-year top-line expansion. Notable movers included Palantir Technologies, which rallied 29.5% after revenue soared 94% to $1.94 billion, and Advanced Micro Devices, which dropped 7.04% despite a 50% revenue surge to a record $11.54 billion. Other highlights featured CVS Health raising its full-year 2026 adjusted EPS guidance to $7.90–$8.10, Pfizer lifting its 2026 revenue forecast to $60.5 billion–$62.5 billion, and Disney reaffirming its roughly 12% full-year adjusted EPS growth outlook while boosting its fiscal 2026 buyback target to at least $9 billion.

CVS Health raised its 2026 earnings guidance and expanded its GLP-1 weight management collaboration with Eli Lilly, the company announced alongside second-quarter results. Revenue reached US$106.10 billion with net income of US$2,979 million, while sales came in at US$35,117 million. The expanded collaboration leverages CVS's integrated pharmacy, insurance, and care-delivery assets to capture growing demand for weight management treatments. The raised guidance reinforces near-term confidence in margin recovery, though elevated medical and pharmacy cost trends remain a key risk.

SpaceX shares fell 11% in premarket trading after the Elon Musk-led rocket company released its first quarterly report since going public in June, reporting capital expenditures of $18.37 billion, up 550% from a year ago, while second-quarter revenue of $7.81 billion topped estimates. Disney rose more than 3% despite mixed fiscal third-quarter results, with earnings per share beating expectations but revenue slightly missing, and its experiences business revenue up 10% annually. Arista Networks gained 12% after second-quarter adjusted earnings of $1.02 per share on revenue of $3.04 billion surpassed estimates, and third-quarter guidance also beat. AMD plunged 8.5% as second-quarter adjusted earnings of $1.66 per share on revenue of $11.54 billion and in-line third-quarter revenue guidance of $13 billion failed to impress investors. Eli Lilly jumped more than 6.5% after beating earnings and revenue estimates and raising its full-year 2026 revenue guidance, driven by surging demand for weight loss drug Zepbound and diabetes treatment Mounjaro. Circle Internet Group shares were up more than 5% after naming initial partners for its Arc blockchain and doubling the midpoint of its full-year other revenue guidance to $320 million. Wynn Resorts saw shares jump 5% after second-quarter adjusted earnings of $1.24 per share on revenue of $1.86 billion beat estimates. CVS Health shares were up over 2.5% after better-than-expected earnings and revenue and an increase in its 2026 adjusted earnings per share guidance to a range of $7.90 to $8.10. Kratos Defense & Security Solutions rose 10% after second-quarter revenue beat estimates in all segments. Pinterest slid nearly 9% as third-quarter revenue guidance of $1.19 billion to $1.21 billion, bracketing the consensus estimate of $1.2 billion, failed to impress despite second-quarter beats. DaVita fell over 5.5% even with better-than-expected second-quarter results, as full-year adjusted earnings guidance of $14.10 to $15.20 per share compared to a consensus of $14.88. Teradata slumped 13% after third-quarter earnings guidance of 55 to 59 cents per share excluding items trailed the consensus estimate of 62 cents. Booking Holdings advanced more than 7% after second-quarter gross bookings of $51 billion and adjusted earnings of $2.54 per share on revenue of $7.35 billion topped estimates. Uber Technologies fell 3% after third-quarter bookings guidance of $59.25 billion at the midpoint missed the consensus estimate of $59.33 billion. Carlyle Group rose more than $2 after earnings and revenue beat estimates and total assets under management reached $485 billion. Flutter Entertainment was off more than 5% after announcing CEO Peter Jackson would leave and be replaced by Dan Taylor on October 1, and lowering full-year revenue guidance.

CVS Health announced a revamp of its weight management program, introducing a $29 MinuteClinic online visit for GLP-1 therapy evaluation and a collaboration with Eli Lilly to offer transparent pricing for Zepbound and Foundayo through the CVS Health app. The $29 visit, available 24/7 with no membership or recurring fee, connects eligible adults with licensed clinicians who can prescribe GLP-1 medications when clinically appropriate, with same-day pickup at 9,000 CVS Pharmacy locations. Through the Lilly collaboration, eligible Zepbound and Foundayo patients will be able to view transparent cash-pay and reimbursed pricing in the app by early fourth quarter of 2026. CVS Pharmacy already offers all FDA-approved GLP-1s, with out-of-pocket costs as low as $25 per month through commercial insurance with a manufacturer coupon, or $149 for uninsured patients using a manufacturer voucher. The company also participates in the Medicare GLP-1 Bridge program, offering certain medications for $50 per month to eligible beneficiaries through December 31, 2027.

US companies are gradually dropping coverage for GLP-1 weight-loss drugs such as Wegovy and Zepbound, pushing more patients to buy medications through direct-to-consumer platforms. This opens the door for retail giants like Walmart, Costco, CVS, and Amazon to rapidly expand health services and draw customers into their own ecosystems. Analysts view the monthly refill prescriptions as a tool for building long-term customer relationships. Eric Bormel, managing director of digital health at Solomon Partners, says retailers are competing to become the first point of care for obesity patients. Meanwhile, drugmakers like Eli Lilly and Novo Nordisk have launched DTC programs with price promotions, such as LillyDirect charging around 299 to 449 dollars per month and NovoCare starting at just 199 dollars per month. Costco has partnered with Sesame to sell Wegovy for about 349 dollars per month for members. Walmart, with roughly 4,600 pharmacies, has expanded its Better Care Services platform to become a comprehensive health service hub. Amazon offers medication starting at just 25 dollars per month through Amazon Pharmacy, with same-day delivery in nearly 3,000 cities. A Mercer survey indicates that 6 percent of large employers dropped GLP-1 drug coverage this year after treatment costs surged, with the share of claims for this drug class rising to 11.4 percent from 6.9 percent in 2023. This intensifies competition among retailers and puts heavy pressure on independent pharmacies.

X and the World Federation of Advertisers have settled litigation over an alleged advertiser boycott linked to the now-defunct Global Alliance for Responsible Media. The settlement follows a March ruling in which a U.S. judge dismissed X's antitrust lawsuit against the WFA and major companies including Mars, CVS Health, and Colgate-Palmolive. The WFA reaffirmed its commitment to freedom of speech and said it had permanently discontinued GARM in August 2024 and would not revive the initiative or create a similar program. The two organizations said brands, platforms, and consumers all stand to benefit from continued innovation in brand safety.

Health100, a CVS Health subsidiary, has earned the CARIN Code of Conduct for Consumer-Facing Applications Accreditation from DirectTrust for its mobile app. The accreditation followed a comprehensive independent third-party review that examined the app's transparency, consent, use and disclosure, individual access, security, provenance, accountability, and education. DirectTrust President and CEO Scott Stuewe said the achievement gives all health care stakeholders full confidence in exchanging private health information via the app. Tony Ambrozie, Senior Vice President and Chief Digital & Technology Officer at CVS Health and Health100, called the accreditation an important milestone that reinforces the company's commitment to data privacy, security, and transparency. Health100 provides consumers with cost transparency, care navigation, and chronic condition management through a unified platform open to all consumers regardless of where they get their care.

CVS Health is expected to report a year-over-year increase in earnings and revenue for the quarter ended June 2026, with the Zacks Earnings ESP model indicating a likely beat. The consensus estimate calls for earnings of $1.87 per share, up 3.3% from the prior year, on revenues of $100.18 billion, a 1.3% increase. The Most Accurate Estimate is higher than the consensus, yielding an Earnings ESP of +1.42%, and the stock carries a Zacks Rank of 2, a combination that historically produces a positive surprise nearly 70% of the time. CVS Health has beaten consensus EPS estimates in each of the last four quarters, including a 16.29% surprise in the most recent period. The company is scheduled to release results on August 5.

CVS Health announced that common prescription medications for dogs and cats are now available at its approximately 9,000 CVS Pharmacy locations nationwide. Pet owners can fill prescriptions for select pet-only medications, including antibiotics, allergy, flea and tick control, insulin, and pain relievers, and can manage eligible pet prescriptions through the CVS Health app. The service offers the same pharmacy conveniences as human prescriptions, such as automatic refills, prescription syncing, and delivery for select medications. Pet owners can present a written prescription or have their veterinarian contact the pharmacy directly, with electronic prescription capabilities planned for the coming months. The move expands CVS Pharmacy's pet care offerings, which already include a range of pet food, grooming tools, and wellness products in stores and online.

Kate Farms announced the continued national retail expansion of its High Protein Nutrition Shake, with availability expected to exceed 6,800 Walmart and CVS stores by August. The company also unveiled a new Vanilla flavor, joining existing Chocolate and Strawberry offerings. Since launching in Walmart in Q4 2025, retail distribution for the shake has grown more than sevenfold. The expansion comes as the global plant-based protein market is projected to reach nearly $35 billion by 2030 and GLP-1 usage scales across the U.S., driving consumer demand for high-protein, nutrient-dense options. Kate Farms products are used in more than 1,500 hospitals and medical settings nationwide.

Mark Farrah Associates has released a comparative analysis of the top Administrative Services Only companies in Maryland, identifying UnitedHealth, CareFirst, CVS, and Cigna as the four leading administrators based on number of contracts. Together, these four companies cover 98 percent of the state's self-insured marketplace. CareFirst is the largest administrator in Maryland, while UnitedHealth covers employers in all counties and is the top administrator in six of those counties. CVS and Cigna also maintain a large ASO presence for employer contracts but do not cover as many counties as CareFirst and UnitedHealth.

Zacks Investment Research has identified four medical-sector companies with the right setup to beat second-quarter earnings expectations. The picks are CVS Health, Cardinal Health, Humana, and ACADIA Pharmaceuticals, each combining a positive Earnings ESP with a Zacks Rank of 1 or 2. Humana carries a Zacks Rank of 1 and an Earnings ESP of plus 1.71 percent, with consensus revenue estimates of 40.65 billion dollars implying 25.5 percent growth. CVS Health holds a Zacks Rank of 2 and an Earnings ESP of plus 1.42 percent, with consensus revenue of 100.18 billion dollars. Cardinal Health also has a Zacks Rank of 2 and an Earnings ESP of plus 1.24 percent, with fiscal fourth-quarter revenue pegged at 65.61 billion dollars. ACADIA Pharmaceuticals rounds out the list with a Zacks Rank of 2 and an Earnings ESP of plus 25.00 percent, driven by expected growth from Daybue and Nuplazid.

Morgan Stanley strategists say US companies integrating artificial intelligence are well positioned for stronger profit margins this earnings season. The team led by Michael Wilson expects about 100 basis points of net-margin expansion through 2027 tied to AI adoption, with margin expectations improving most clearly for firms where AI is central to their investment thesis and pricing power is neutral to strong. Wilson noted that the outlook for AI adopters is increasingly compelling, especially in industries often seen as vulnerable, including transports, software and services, and professional services. Stocks such as Halliburton, Bank of America, CVS Health, and NextEra Energy are among prime beneficiaries, while Alphabet, Meta Platforms, and Nvidia also continue to screen strongly. Wilson said adoption is moving from experimentation to measurable enterprise value, with about 40% of AI adopters citing at least one quantifiable benefit so far this earnings season, up from 21% a year earlier, and companies reporting a net productivity increase of nearly 10% on average over the past year.

Victory Capital's RS Large Cap Value Strategy highlighted CVS Health Corporation as a beneficiary of improving execution and a favorable payer margin outlook in its second-quarter 2026 investor letter. The strategy initiated its position in early 2025 after shares fell due to prior management's aggressive Medicare Advantage expansion, which drove the Health Care Benefits segment's medical benefit ratio from 84.0% in 2022 to 92.5% in 2024 and compressed operating margins from 6.9% to 0.2%. During the second quarter, CVS reported strong first-quarter results, raised full-year guidance, and saw S&P revise its credit outlook from negative to stable, while the Centers for Medicare & Medicaid Services finalized a 2.5% rate increase for 2027, well above the initially proposed 0.1%, and utilization data pointed to moderating medical cost trends. The combination of higher reimbursement and easing cost pressures is expected to support a meaningful recovery in payer margins, with a credible path to earnings growth over the next two to three years, though the strategy trimmed its position opportunistically to fund other ideas. CVS Health shares closed at $110.60 on July 21, 2026, with a one-month return of 8.57% and a 52-week gain of 78.82%, giving the company a market capitalization of $141.12 billion.