-- CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:
CVS Health delivered strong Q1 2026 results, with total revenues rising 6.2% to $100.4B and adjusted EPS of $2.57 (vs. $2.25 in the prior year), beating the $2.21 consensus estimate. Health Care Benefits was the standout performer, with adjusted operating income surging 52.6% to $3.04B and its medical benefit ratio improving meaningfully to 84.6% from 87.3%, supported by improved Government business performance. Based on the strong first quarter results, CVS raised full-year adjusted EPS guidance to $7.30-$7.50 from $7.00-$7.20 and its cash flow target to at least $9.5B from $9.0B. Medical membership declined to 26.0M from 27.1M, primarily due to CVS's exit from the individual exchange business, partially offset by Commercial membership growth. Health Services posted mixed results with 11.0% revenue growth but a 7.1% operating income decline. We note the company maintained a cautious outlook on elevated cost trends and potential macroeconomic headwinds despite the strong quarter.