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CVS

CVS Health

Integrated U.S. health insurer, pharmacy benefit manager and retail pharmacy operator whose 2026 results show an insurance margin recovery while its care-delivery bet is being cut back.

Health Care ServicesAnalysis updated 2026-11-12

What the filings point to next

Our analysis of the moves the company's own disclosures point to, with the signals that would confirm them.

Top strategy callMedium confidence

Manage 2027 Medicare Advantage for margin rather than membership, accepting further enrollment shrinkage, while running a stars-remediation effort aimed at the 2028 bonus year.

Signals to watch
  • Final 2027 Medicare Advantage rate notice terms (not in the documents provided)
  • Medicare Advantage membership and MBR in early-2027 reporting
  • Disclosure of star-rating appeals or quality-improvement programs
5 more strategy calls in the full analysis
  • Continue narrowing the Oak Street Health and Signify Health footprint toward clinics and assessments that feed Aetna and Caremark, rather than standalone multi-payor expansion.
    Medium confidence
  • Turn the GLP-1 program into a packaged weight-management product sold to PBM clients and employers, linking Caremark formularies, MinuteClinic prescribing and pharmacy adherence support.
    Medium confidence
  • Push AI and data automation into Aetna and Caremark operations as a main cost lever, with the board adding data and AI oversight capacity.
    Medium confidence
  • Direct the higher 2026 cash flow mainly toward debt reduction and balance-sheet flexibility rather than larger shareholder distributions or acquisitions.
    Low confidence
  • Lean harder on fee-based and owned-product PBM economics, such as Cordavis biosimilars, as rebate and spread income comes under pressure.
    Low confidence

Relationship map

Who it buys from, sells to, partners with and competes against, as its disclosures describe it.

CVSU.S. federal government (CMS): Largest customer: Medicare Advantage, Part D and federal employee benefit contractsU.S. federal government (CM…State Medicaid and CHIP agencies: Multi-year managed care contracts subject to annual appropriationsState Medicaid and CHIP age…Federal Employees Health Benefits Program: HMO and consumer-directed plans for federal employeesFederal Employees Health Be…Employers and plan sponsors: Commercial Insured and ASC health plans; PBM clientsEmployers and plan sponsors340B Covered Entities: Pharmacy and administrative services clients340B Covered EntitiesPharmaceutical manufacturers (unnamed): Drug purchasing, rebates and discounts; GPO negotiationsPharmaceutical manufacturer…Retail pharmacy network: About 63,000 network pharmacies dispensing for Caremark membersRetail pharmacy networkPhysicians, hospitals and other providers: Aetna provider network under negotiated and risk-sharing contractsPhysicians hospitals and ot…Non-affiliated reinsurers (unnamed): Reinsurance to limit catastrophic lossesNon-affiliated reinsurers (…Independent brokers, agents and consultants: Distribution of Health Care Benefits productsIndependent brokers agents …CMS Medicare GLP-1 Bridge program: CVS Pharmacy participates; eligible beneficiaries pay $50 per monthCMS Medicare GLP-1 Bridge…Biosimilar manufacturers (unnamed): Cordavis commercializes and co-produces biosimilarsBiosimilar manufacturers …Omnicare Entities (deconsolidated former subsidiary): Former long-term care pharmacy unit; deconsolidated September 2025Omnicare Entities (decons…Original Medicare: Largest competitor for Medicare productsOriginal MedicareBlue Cross and Blue Shield licensees: Compete in Insured and ASC health plansBlue Cross and Blue Shiel…Large commercial health insurers (unnamed): Compete across commercial and government plansLarge commercial health i…

Customers Suppliers Partners (top) Competitors (bottom) · solid = disclosed, dashed = inferred · tap a highlighted company to open it

What other companies' disclosures say about it

Shares a board member with
Named as a customer by

Business at a glance

Operating-health scores describe reported fundamentals on a 0–100 scale. They are not a rating of the stock. How they work

Operating health45
Growth51
Profitability25
Cash generation54
Balance sheet25
Dilution control72
Key ratios and five-year financials
Latest quarter revenue YoY (2026-09-30)5.4%Revenue growth (FY)7.8%Revenue CAGR (3y)7.6%Gross margin45.0%Operating margin1.2%Net margin0.4%Free cash flow margin1.9%R&D / revenue—Stock comp / revenue0.1%Net debt / operating cash flow4.89xCurrent ratio0.84Diluted share count change0.7%
Fiscal year endingFY 2021-12FY 2022-12FY 2023-12FY 2024-12FY 2025-12
Revenue$292.1B$322.5B$357.8B$372.8B$402.1B
Gross profit$116.3B$125.6B$140.7B$166.5B$180.9B
Operating income$13.3B$8.0B$13.7B$8.5B$4.7B
Net income$8.0B$4.3B$8.3B$4.6B$1.8B
Operating cash flow$18.3B$16.2B$13.4B$9.1B$10.6B
Capital expenditure$2.5B$2.7B$3.0B$2.8B$2.8B
Free cash flow$15.7B$13.4B$10.4B$6.3B$7.8B
Stock-based comp$484M$447M$588M$540M$535M
Buybacks$0$3.5B$2.0B$3.0B$0
Dividends$2.6B$2.9B$3.1B$3.4B$3.4B
Cash$9.4B$12.9B$8.2B$8.6B$8.5B
Total debt$52.0B$50.5B$58.8B$62.6B$60.5B
Equity$75.1B$71.5B$76.5B$75.6B$75.2B

Built from the company's disclosures: 10-K (2026-02-10), 8-K (2026-11-04), 8-K (2026-08-17), 8-K (2026-08-05), 8-K (2026-05-18), DEF 14A (2026-04-03).

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