CVS Health reported strong first-quarter 2026 results, with total revenues increasing by 6.2% year-over-year to $100.4 billion. The company's GAAP diluted EPS rose to $2.30 from $1.41 in the prior year, and Adjusted EPS increased to $2.57 from $2.25. This performance was primarily driven by improved adjusted operating income in its Health Care Benefits segment, reflecting ongoing efforts in its margin recovery plan.
Following these strong results, CVS Health raised its full-year 2026 guidance. The company now projects GAAP diluted EPS in the range of $6.24 to $6.44, up from $5.94 to $6.14, and Adjusted EPS in the range of $7.30 to $7.50, an increase from $7.00 to $7.20. Cash flow from operations guidance was also raised to at least $9.5 billion from at least $9.0 billion. Despite this optimistic outlook, CVS maintains a cautious view for the rest of the year due to elevated cost trends and potential macro headwinds.
In a significant move for the GLP-1 market, CVS Caremark announced it would no longer give an exclusive advantage to Novo Nordisk's Wegovy. Instead, it will add Eli Lilly's injectable Zepbound back as a preferred option starting October 1, 2026, and include the new oral drug Foundayo on its formularies from June 1, 2026. This decision means that Lilly's drugs will be covered by all three largest Pharmacy Benefit Managers (PBMs) in the U.S., potentially making them available to millions more patients. Eli Lilly's shares rose nearly 6% in early trading following this announcement, as the move puts Lilly on equal footing with Novo Nordisk in a crucial market, covering an estimated 25 to 30 million Americans. CVS expects this change to lead to an additional 10-15% reduction in weight management drug prices.
