# CVS Health Corporation (CVS)

> CVS Health sells health insurance, manages prescription drug benefits, runs pharmacies, and provides medical care.

- Exchange: NYSE · Sector: Healthcare · Industry: Healthcare Plans
- Headquarters: Woonsocket, Rhode Island
- Founded: 1963 (founding year)
- Employees: 300,000+ (December 31, 2025)
- SEC CIK: 0000064803 ([filings on EDGAR](https://www.sec.gov/cgi-bin/browse-edgar?action=getcompany&CIK=0000064803))
- Full page: https://inspectstocks.com/stocks/cvs
- Data as of: price 2026-09-25; newest filing used 2026-08-05; latest fiscal period ended 2026-06-30

## Grade

**B** on the growth-and-cash rubric, 4 of 5 checks passed.

| Check | Result | Now | Before |
| --- | --- | --- | --- |
| Revenue growing overall | passed | $415.1B | $339.2B |
| Revenue growing recently | passed | $415.1B | $402.1B |
| Free cash flow positive | passed | $11.8B |  |
| Free cash flow growing overall | failed | $11.8B | $17.7B |
| Free cash flow growing recently | passed | $11.8B | $7.8B |

Business quality (the + / − mark): 2 of 6 checks passed.

| Check | Result | Now | Before |
| --- | --- | --- | --- |
| Profitable | passed | 1.2% |  |
| Healthy profit margin | failed | 1.2% |  |
| Strong operating margin | failed | 2.0% |  |
| Good return on equity | failed | 6.5% |  |
| Debt under control | passed | 1.08 |  |
| Turns sales into cash | failed | 2.8% |  |

How the grade works: the letter counts failed checks (none → A, one → B, two → C, three → D, four or more → F). It is built from SEC filings only — the share price never enters it — and describes the business, not whether the stock is worth buying.

## Key figures

In US dollars, as filed.

| Measure | Value |
| --- | --- |
| Revenue, trailing twelve months | $415.1B |
| Net income, trailing twelve months | $4.9B |
| Free cash flow, trailing twelve months | $11.8B |
| Net margin | 1.2% |
| Operating margin | 2.0% |
| Return on equity | 6.5% |
| Debt to equity | 1.08 |
| Diluted EPS, trailing twelve months | $3.80 |
| Share price | $89.13 |
| Market value | $114B |
| Price / earnings | 23.5x |
| Price / sales | 0.3x |

## What the business does

CVS Health combines health insurance through Aetna, prescription drug benefit management through CVS Caremark, and pharmacies and health care services. As of June 30, 2026, it had approximately 9,000 retail locations and a pharmacy benefit manager serving about 87 million plan members (June 30, 2026, high). Its care services include primary care centers, walk-in clinics, virtual care, and health assessments in people’s homes.

### How it makes money

- **Prescription benefit management and related health services** (41.8% (six months ended June 30, 2026)) — CVS Caremark administers prescription drug benefits for employers, insurers, government-related plans, and other plan sponsors. Revenue includes prescription drugs supplied through pharmacy networks and mail and specialty pharmacies, along with fees for managing benefits and related services. Share is calculated against the three operating segments’ reported revenues before intersegment eliminations.
- **Health insurance** (30.7% (six months ended June 30, 2026)) — Aetna receives premiums for insurance coverage and fees for administering plans where the customer or plan sponsor bears most of the medical cost risk. Buyers include employers, individuals, and government programs such as Medicare and Medicaid. Share is calculated against the three operating segments’ reported revenues before intersegment eliminations.
- **Retail and other pharmacy sales** (27.5% (six months ended June 30, 2026)) — CVS Pharmacy earns money by dispensing prescriptions and selling health, beauty, personal care, and general merchandise in stores and online. Prescription payments usually come from pharmacy benefit managers, insurers, government programs, employers, or customers; front-store purchases are generally paid for at checkout. Share is calculated against the three operating segments’ reported revenues before intersegment eliminations.

### Products

- **Aetna health insurance** — Medical, pharmacy, dental, and behavioral health coverage, including employer plans and Medicare and Medicaid coverage.
- **CVS Caremark pharmacy benefit management** — Prescription drug plan administration for clients, including processing claims, maintaining drug lists that guide which medicines plans cover, and arranging access to retail, mail-order, and specialty pharmacies.
- **CVS Pharmacy** — Retail pharmacies that fill prescriptions, provide services such as vaccinations, and sell over-the-counter medicines, personal care items, beauty products, and other goods.
- **Specialty and mail-order pharmacy** — Pharmacies that deliver ongoing medicines by mail and provide specialized support and medicines for people with complex, chronic, or genetic conditions.
- **Primary care, walk-in, and virtual care** — Oak Street Health centers provide primary care, particularly for Medicare-eligible patients; MinuteClinic locations and virtual visits provide walk-in and remote care.
- **In-home health evaluations** — Signify Health sends health care providers to people’s homes, or arranges virtual or in-person evaluations, to assess health needs and share findings with health plans and primary care providers.

### Customers

- Employers and other plan sponsors buy health insurance or administrative services for employees and dependents; employees may choose among plans during enrollment.
- Individuals buy health coverage directly, including Medicare plans; Medicaid members enroll through state programs.
- Government agencies, including the Centers for Medicare & Medicaid Services, contract for Medicare, Medicaid, and other health services.
- Employers, insurers, unions, and other health plan sponsors hire CVS Caremark to manage prescription benefits for their members.
- People fill prescriptions and buy health and general merchandise at CVS Pharmacy locations or online; payment may come from the customer or a third-party payer.
- Health plans and patients use CVS care services, including primary care centers, walk-in clinics, virtual visits, and in-home evaluations.

### Competitors

- UnitedHealth Group, including UnitedHealthcare and Optum Rx (UNH) — UnitedHealthcare competes with Aetna for health insurance customers; Optum Rx competes with CVS Caremark in prescription benefit management. Both are businesses of listed parent UnitedHealth Group.
- Cigna Group, including Express Scripts (CI) — Express Scripts competes with CVS Caremark in prescription benefit management. It is a business of listed parent Cigna Group.
- Amazon (AMZN) — Online retail and prescription delivery.
- Walmart (WMT) — Retail pharmacy and sales of health and general merchandise.

### What it depends on

- Aetna depends on government contracts and payments, especially for Medicare and Medicaid coverage; those programs’ payment rules, requirements, and funding can change.
- CVS Caremark and CVS Pharmacy depend on contracts with health plans, pharmacy benefit managers, employers, and other payers, as well as on their terms for prescription reimbursement.
- Prescription businesses depend on drug manufacturers and suppliers for medicines, pricing, rebates, and continued supply; manufacturer restrictions also affect the federal 340B drug pricing program.
- Insurance and care delivery depend on contracted doctors, hospitals, pharmacies, and qualified medical staff being available on workable terms.

### What could go wrong

- Medical costs can exceed the amounts Aetna priced into its insurance premiums. The company reported elevated health care use in the second quarter of 2026, which could increase costs for its insurance and care delivery businesses.
- Changes to Medicare and Medicaid funding or rules, and new restrictions on pharmacy benefit managers or the 340B drug pricing program, could affect payments, contracts, and how CVS operates its insurance and pharmacy businesses.
- Drug manufacturer pricing and supply terms, changes in prescription mix, and pressure from pharmacy clients on prices and reimbursement can affect revenue and the economics of CVS Caremark and CVS Pharmacy.

## More on this company

- [Overview](https://inspectstocks.com/stocks/cvs)
- [Financial statements](https://inspectstocks.com/stocks/cvs/financials)
- [Competitors](https://inspectstocks.com/stocks/cvs/peers)
- [Earnings](https://inspectstocks.com/stocks/cvs/earnings)

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Source: InspectStocks, built from the company’s own SEC filings. This describes a business — it is not investment advice and not a recommendation to buy or sell anything.