CVS Health and Walmart are key players in the U.S. Retail Pharmacy market. CVS boasts a diversified business with 9,000 retail locations, while Walmart operates retail stores, clubs, and eCommerce platforms. Walmart will move its stock listing to Nasdaq on Dec. 9, keeping its current ticker symbol.

In terms of revenue, CVS reported record third-quarter revenues of $103 billion, driven by growth in all segments. Walmart posted consolidated revenues of $179.5 billion, with strong performance in international markets and robust e-commerce sales.

In terms of profitability, CVS saw a 36% increase in adjusted operating income, while Walmart’s adjusted operating income rose 8% in constant currency across all segments. Both companies exceeded earnings expectations.

CVS generated $7.2 billion in operating cash flows and paid out $2.6 billion in dividends, while Walmart reported $10.6 billion in cash and cash equivalents and returned nearly $13 billion to shareholders through dividends and share repurchases.

Looking ahead, CVS expects revenues of at least $397 billion for 2025, with adjusted EPS between $6.55 and $6.65. Walmart forecasts sales growth of 4.8% to 5.1% for fiscal 2026, with adjusted EPS expected to be between $2.58 and $2.63.

In terms of stock performance, CVS shares have surged 73.5% year to date, outpacing Walmart’s 15.4% growth. CVS is trading at a lower price-to-sales ratio compared to Walmart.

Analysts are bullish on both companies, but CVS appears to have an edge given its strong performance and valuation. Both CVS and Walmart carry a Zacks Rank #3 (Hold).

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Source: Zacks Investment Research.

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