CVS Health reported fourth-quarter earnings and revenue that beat estimates, reaffirming 2026 profit guidance. The company sees full-year profit between $7 to $7.20 per share and maintains 2026 revenue guidance of at least $400 billion. CVS attributes $20 billion in headwinds to various factors impacting their business, such as exiting the Affordable Care Act market and adjusting to lower drug prices.

The company’s fourth-quarter earnings per share were $1.09 adjusted, exceeding the expected 99 cents, with revenue at $105.69 billion, up 8.2% from the previous year. CVS’s insurance business revenue grew over 10% from the previous year, driven by Medicare Advantage plans. The company remains optimistic despite elevated trends in medical costs and maintains a prudent outlook.

CVS’s pharmacy and consumer wellness division posted $37.66 billion in sales, up 12.4% from the previous year. The health services segment generated $51.24 billion in revenue, up 9% from the same quarter in 2024. The company continues to navigate challenges such as pharmacy reimbursement pressure and the impact of generic drugs entering the market.

Shares of Medicare Advantage insurers faced challenges after the Trump administration proposed flat government payment rates in 2027. CVS engaged in dialogue with CMS to address their concerns before the rate notice finalization in April. The company remains focused on driving growth and profitability across its diverse business segments to achieve its financial targets.

Read more at CNBC: CVS Health (CVS) earnings Q4 2025