EARNINGS & CATALYSTS · November 3, 2026
CVS earnings preview for November 4: medical costs test the profit recovery
CVS reports on November 4 as investors test medical costs, cash generation and its raised profit outlook. Aetna’s quality ratings add longer-term context, while recent UnitedHealth results show why beating estimates alone may not lift the shares.
| Company | Report date | Window | EPS estimate | Revenue estimate |
|---|---|---|---|---|
| CVS Health Corp. (CVS) | November 4, 2026Expected · subject to change | Before open | 1.65 | 104.72B |
1) When is the report, and what is expected?
CVS has confirmed its third-quarter results call for November 4, 2026 before open. The issuer announcement confirms the call date and time, but does not specify the exact release time. The earnings calendar expects results before open. The quarter ended September 30. FactSet estimates published October 30 called for adjusted EPS of $1.65, revenue of $104.72 billion and a medical benefit ratio of 92.3%. These are dated analyst expectations. They differ from company guidance and should be compared with the same accounting definitions when results arrive.
2) How strong is the profit recovery?
Second-quarter revenue reached $106.096 billion. GAAP diluted EPS was $2.31 and adjusted EPS was $2.58. GAAP follows standard accounting rules, while the adjusted figure removes selected items. CVS raised its full-year adjusted EPS range to $7.90–$8.10 from $7.30–$7.50 and its cash-from-operations floor to $11.5 billion from $9.5 billion. The insurance business benefited from a lower medical benefit ratio. First-half results also included $1.2 billion of favorable revisions to estimated claims from prior years. Those revisions improve reported profit but are different from earning more on newly insured members. Watch current treatment costs and whether the outlook changes again.
3) What do the charts and valuation show?
CVS closed November 2 at $88.51, below its 20-day average of $90.52 and 50-day average of $91.14. The recent $86–$88.20 low area and $90.50–$92 trading area are approximate reference points. A close above $92 would improve the recent setup; a close below $86 would weaken it. Earnings can move the shares beyond these areas. The financial image uses trailing GAAP earnings through June, which include the fiscal 2025 goodwill impairment charge. That charge makes the trailing price-to-earnings ratio less useful on its own. The forward ratio uses the midpoint of the company’s fiscal 2026 GAAP EPS guidance, rather than adjusted EPS.
4) How the business makes money
CVS earns money from pharmacies, health insurance and managing prescription drug benefits. Its Aetna insurance business collects premiums and pays medical claims. Its pharmacy services business manages drug benefits for employers and health plans, while its stores dispense prescriptions and sell other products. Sales between these businesses overlap, so the financial image uses consolidated revenue sources after internal transactions are removed.
5) What to watch
The main near-term test is whether treatment costs and pharmacy profitability support the next full-year outlook. Cash generation matters because CVS must fund investment, debt payments and shareholder returns. Aetna’s October 8 update says more than 69% of Medicare Advantage members are in plans with four-star or better 2027 ratings. CMS says the 2027 ratings affect 2028 quality bonus payments. The ratings provide longer-term context and should not be treated as an immediate boost to this quarter’s earnings.
6) Recently reported peers
UnitedHealth reported its third quarter on October 13. Revenue was $112.7 billion, GAAP diluted EPS was $4.56 and adjusted EPS was $4.69. Its medical care ratio was 88.4%, and it raised its full-year adjusted EPS floor to $20.50. Compared with the dated consensus used in the image, adjusted EPS beat by about 13.3% and revenue by about 1.2%. UnitedHealth shares fell about 0.2% from the October 12 close to the October 13 close. That window contains all news affecting the shares that day. Its insurance and services mix differs from CVS, so it is useful context for medical costs and expectations rather than a forecast of CVS results.
7) Risks into the report
Higher treatment use, expensive drugs and changes in Medicare reimbursement can raise insurance costs. Prior-year claims estimate improvements may not repeat. Pharmacy reimbursement pressure, regulation and competition can reduce margins even when revenue grows. Debt and investment needs can limit cash available to shareholders, while accounting charges can make GAAP profit volatile.