CVS changes
Pick any two versions below to diff them.
- Price
- $92.36 → $93.45(+1.2%)
- Discount
- 2% → 1%(−1.0 pts)
- Risks
- Aetna's profit depends on medical costs staying within what it priced. CVS warns of continued elevated cost trends. A new rise in costs, as in 2025, lowers earnings quickly. Caremark keeps giving pricing improvements to clients, and laws or rules on pharmacy benefit managers can change how they earn money. These changes can lower Health Services profit. CVS had a remaining accrual of about $3.4 billion for opioid litigation at June 30, 2026. Some states and private plaintiffs are not part of the settlement, and the final cost may be higher. Fewer Aetna Medicare Advantage members are in plans with 4 stars or higher for 2027: more than 69%, down from more than 81% for 2026. Lower ratings reduce the quality bonus payments in 2028, and Aetna must improve its ratings to get them back. Total debt was $61.4 billion at June 30, 2026. Large debt limits buybacks and investment until it falls further.
- Recent events
- 2026-10-08: Aetna said that more than 69% of its Medicare Advantage members are in plans with a rating of 4 stars or higher for 2027. For 2026, the figure was more than 81%. The star ratings set the quality bonus payments that Aetna receives in 2028. 2026-08-17: CVS said that Larry Robbins resigned from its board on August 13, 2026, with no disagreement with the company. The board appointed Teresa Heitsenrether, Chief Data & Analytics Officer of JPMorgan Chase, as a director effective November 18, 2026. 2026-08-05: CVS reported Q2 2026 results. Total revenues rose 7.3% to $106.1 billion, and adjusted EPS rose to $2.58 from $1.81. The Aetna medical benefit ratio fell to 87.4% from 89.9%. CVS raised its 2026 adjusted EPS guidance to $7.90 to $8.10 and its cash flow from operations guidance. 2026-05-06: CVS reported Q1 2026 results. Total revenues were $100.4 billion, and adjusted EPS was $2.57, up from $2.25. It raised its 2026 adjusted EPS guidance to $7.30 to $7.50.