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CVS slides after guidance flags 2026 Caremark membership declines
CVS reported higher Q2 revenue and raised full-year adjusted EPS guidance, but management warned about expected headwinds tied to its 340B program and Caremark membership.
CVS Health shares fell nearly 5% on Aug. 5 after executives discussed expected headwinds on its earnings call, even though the company delivered a strong beat-and-raise quarter, according to MarketBeat Ratings. The stock rose in pre-market trading after the results but reversed during the call.
On the call, CEO Brian Newman said CVS expects continued dynamics in its 340B business that will create a headwind into 2027. He also said the company expects membership declines in Caremark next year, adding to investor concerns.
CVS’s Q2 2026 report showed total revenue of $106.1 billion, up from $98.9 billion a year earlier, and adjusted EPS of $2.58 versus $1.81 prior year. GAAP EPS rose to $2.31 from 80 cents.
For 2026, CVS raised guidance for adjusted EPS to a range of $7.90 to $8.10, and increased full-year revenue guidance to at least $414 billion. Management also lifted its cash flow from operations guidance to at least $11.5 billion, while each core segment reported higher adjusted operating income year over year, MarketBeat Ratings said.