Revenue growth accelerated to 7.3% in 2026Q2, with EPS up 188.8% to $2.31, while the combined ratio improved to 95.6% from 98.0% in 2025Q4, indicating stabilizing underwriting profitability.
CVS Health Corp. (CVS) annual income statement — 30-year revenue, gross profit & net income history
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 | Dec'97 | Dec'96 |
|---|
| Revenue | 415.09B | 402.07B | 372.81B | 357.78B | 322.47B | 292.11B | 268.71B | 256.78B | 194.58B | 184.79B | 177.55B | 153.29B | 139.37B | 126.76B | 123.12B | 107.08B | 95.78B | 98.22B | 87.47B | 76.33B | 43.82B | 37.01B | 30.59B | 26.59B | 24.18B | 22.24B | 20.09B | 18.1B | 15.27B | 13.75B | 11.83B |
| Revenue Growth % | 7.36% | 7.85% | 4.2% | 10.95% | 10.39% | 8.71% | 4.65% | 31.96% | 5.3% | 4.08% | 15.82% | 9.99% | 9.94% | 2.96% | 14.98% | 11.8% | -2.48% | 12.28% | 14.6% | 74.18% | 18.41% | 20.96% | 15.07% | 9.95% | 8.72% | 10.72% | 10.99% | 18.49% | 11.08% | 16.21% | 21.18% |
| Medical Costs & Claims | 356.34B | 346.7B | 321.41B | 303.35B | 267.96B | 239.99B | 219.66B | 211.25B | 163.04B | 156.26B | 148.71B | 126.76B | 114B | 102.98B | 100.63B | 86.52B | 75.56B | 77.86B | 69.18B | 60.22B | 32.08B | 27.31B | 22.56B | 19.73B | 18.11B | 16.55B | 14.73B | 13.24B | 11.14B | 10.03B | 8.47B |
| Medical Cost Ratio % | 85.85% | 86.23% | 86.21% | 84.79% | 83.1% | 82.16% | 81.75% | 82.27% | 83.79% | 84.56% | 83.76% | 82.69% | 81.8% | 81.24% | 81.73% | 80.8% | 78.89% | 79.27% | 79.09% | 78.9% | 73.2% | 73.8% | 73.75% | 74.19% | 74.9% | 74.41% | 73.31% | 73.14% | 72.97% | 72.93% | 71.62% |
| Gross Profit | 58.75B | 55.36B | 51.4B | 54.43B | 54.5B | 52.12B | 49.05B | 45.53B | 31.54B | 28.53B | 28.83B | 26.53B | 25.37B | 23.78B | 22.49B | 20.56B | 20.22B | 20.36B | 18.29B | 16.11B | 11.74B | 9.69B | 8.03B | 6.86B | 6.07B | 5.69B | 5.36B | 4.86B | 4.13B | 3.72B | 3.36B |
| Gross Margin % | 14.15% | 13.77% | 13.79% | 15.21% | 16.9% | 17.84% | 18.25% | 17.73% | 16.21% | 15.44% | 16.24% | 17.31% | 18.2% | 18.76% | 18.27% | 19.2% | 21.11% | 20.73% | 20.91% | 21.1% | 26.8% | 26.2% | 26.25% | 25.81% | 25.1% | 25.59% | 26.69% | 26.86% | 27.03% | 27.07% | 28.38% |
| Gross Profit Growth % | - | 7.71% | -5.57% | -0.13% | 4.57% | 6.27% | 7.73% | 44.36% | 10.55% | -1.06% | 8.69% | 4.58% | 6.66% | 5.76% | 9.37% | 1.7% | -0.68% | 11.31% | 13.55% | 37.18% | 21.12% | 20.71% | 17.02% | 13.09% | 6.64% | 6.14% | 10.29% | 17.73% | 10.92% | 10.85% | 15.64% |
| Operating Expenses | 50.46B | 44.98B | 42.88B | 40.69B | 46.55B | 38.81B | 35.13B | 33.54B | 27.52B | 18.99B | 18.45B | 17.05B | 16.57B | 15.75B | 15.28B | 14.23B | 14.08B | 13.93B | 12.24B | 11.31B | 9.3B | 7.68B | 6.58B | 5.44B | 4.86B | 4.92B | 4.04B | 3.73B | 3.2B | 3.02B | 2.75B |
| OpEx / Revenue % | 12.16% | 11.19% | 11.5% | 11.37% | 14.43% | 13.29% | 13.08% | 13.06% | 14.14% | 10.28% | 10.39% | 11.12% | 11.89% | 12.42% | 12.41% | 13.29% | 14.7% | 14.19% | 14% | 14.82% | 21.22% | 20.74% | 21.5% | 20.46% | 20.11% | 22.12% | 20.11% | 20.59% | 20.94% | 21.95% | 23.27% |
| Depreciation & Amortization | 4.52B | 4.61B | 4.6B | 4.37B | 4.22B | 4.49B | 4.44B | 4.37B | 2.72B | 2.48B | 2.48B | 2.09B | 1.93B | 1.87B | 1.75B | 1.57B | 1.47B | 1.39B | 1.27B | 1.09B | 733.3M | 589.1M | 439.9M | 341.7M | 310.3M | 320.8M | 296.6M | 277.9M | 249.7M | 242.6M | 262.8M |
| Combined Ratio % | 98% | 97.42% | 97.72% | 96.16% | 97.53% | 95.44% | 94.82% | 95.33% | 97.93% | 94.84% | 94.15% | 93.82% | 93.69% | 93.66% | 94.14% | 94.09% | 93.59% | 93.46% | 93.09% | 93.72% | 94.43% | 94.54% | 95.25% | 94.65% | 95.01% | 96.54% | 93.42% | 93.73% | 93.91% | 94.88% | 94.89% |
| Operating Income | 8.29B | 10.38B | 8.52B | 13.74B | 7.95B | 13.31B | 13.91B | 11.99B | 4.02B | 9.54B | 10.39B | 9.47B | 8.8B | 8.04B | 7.21B | 6.33B | 6.14B | 6.42B | 6.05B | 4.79B | 2.44B | 2.02B | 1.45B | 1.42B | 1.21B | 770.6M | 1.32B | 1.14B | 930.5M | 704.1M | 604.7M |
| Operating Margin % | 2% | 2.58% | 2.28% | 3.84% | 2.47% | 4.56% | 5.18% | 4.67% | 2.07% | 5.16% | 5.85% | 6.18% | 6.31% | 6.34% | 5.86% | 5.91% | 6.41% | 6.54% | 6.91% | 6.28% | 5.57% | 5.46% | 4.75% | 5.35% | 4.99% | 3.46% | 6.58% | 6.27% | 6.09% | 5.12% | 5.11% |
| Operating Income Growth % | - | 21.95% | -38.03% | 72.78% | -40.24% | -4.32% | 16.05% | 198.11% | -57.84% | -8.16% | 9.61% | 7.68% | 9.48% | 11.47% | 13.88% | 3.16% | -4.48% | 6.27% | 26.13% | 96.32% | 20.9% | 38.83% | 2.18% | 18.02% | 56.53% | -41.74% | 16.49% | 22.03% | 32.15% | 16.44% | 52.62% |
| EBITDA | 12.81B | 14.99B | 13.11B | 18.11B | 12.18B | 17.8B | 18.35B | 16.36B | 6.74B | 12.02B | 12.86B | 11.57B | 10.73B | 9.91B | 8.96B | 7.9B | 7.61B | 7.81B | 7.32B | 5.89B | 3.17B | 2.61B | 1.89B | 1.77B | 1.52B | 1.09B | 1.62B | 1.41B | 1.18B | 946.7M | 867.5M |
| EBITDA Margin % | 3.09% | 3.73% | 3.52% | 5.06% | 3.78% | 6.09% | 6.83% | 6.37% | 3.46% | 6.5% | 7.24% | 7.55% | 7.7% | 7.82% | 7.28% | 7.38% | 7.94% | 7.96% | 8.37% | 7.71% | 7.25% | 7.05% | 6.19% | 6.64% | 6.27% | 4.91% | 8.06% | 7.81% | 7.73% | 6.89% | 7.33% |
| Interest Expense | 3.1B | 3.12B | 2.96B | 2.66B | 2.29B | 2.5B | 2.91B | 3.04B | 2.62B | 1.06B | 1.08B | 859M | 615M | 517M | 561M | 588M | 539M | 530M | 530M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Non-Operating Income | -601M | 5.13B | -590M | -88M | -169M | 270M | 1.23B | -45M | -4M | 208M | 671M | 0 | 506M | -8M | 344M | -4M | -3M | -5M | -21M | 0 | 0 | 0 | 0 | 0 | 0 | -352.5M | 0 | 0 | 0 | 0 | 0 |
| Pretax Income | 5.79B | 2.14B | 6.15B | 11.17B | 5.84B | 10.54B | 9.77B | 9B | 1.41B | 8.27B | 8.64B | 8.62B | 7.68B | 7.53B | 6.3B | 5.75B | 5.6B | 5.9B | 5.54B | 4.36B | 2.23B | 1.91B | 1.4B | 1.38B | 1.16B | 709.6M | 1.24B | 1.08B | 691M | 237.6M | 643.4M |
| Pretax Margin % | 1.39% | 0.53% | 1.65% | 3.12% | 1.81% | 3.61% | 3.64% | 3.5% | 0.72% | 4.47% | 4.86% | 5.62% | 5.51% | 5.94% | 5.12% | 5.37% | 5.85% | 6.01% | 6.33% | 5.71% | 5.08% | 5.16% | 4.56% | 5.17% | 4.78% | 3.19% | 6.19% | 5.95% | 4.52% | 1.73% | 5.44% |
| Income Tax | 916M | 408M | 1.56B | 2.81B | 1.51B | 2.55B | 2.57B | 2.37B | 2B | 1.64B | 3.32B | 3.39B | 3.03B | 2.93B | 2.44B | 2.26B | 2.18B | 2.2B | 2.19B | 1.72B | 856.9M | 684.3M | 477.6M | 528.2M | 439.2M | 296.4M | 497.4M | 441.3M | 306.5M | 149.2M | 271M |
| Effective Tax Rate % | 15.83% | 19.1% | 25.41% | 25.11% | 25.86% | 24.18% | 26.29% | 26.3% | 142.39% | 19.8% | 38.4% | 39.3% | 39.5% | 38.89% | 38.64% | 39.29% | 38.9% | 37.29% | 39.61% | 39.5% | 38.5% | 35.85% | 34.2% | 38.4% | 38% | 41.77% | 40% | 41% | 44.36% | 62.79% | 42.12% |
| Net Income | 4.91B | 1.77B | 4.61B | 8.34B | 4.31B | 8B | 7.18B | 6.63B | -594M | 6.62B | 5.32B | 5.24B | 4.64B | 4.59B | 3.86B | 3.46B | 3.43B | 3.7B | 3.21B | 2.64B | 1.37B | 1.22B | 918.8M | 847.3M | 716.6M | 413.2M | 746M | 635.1M | 384.5M | 88.8M | 208.2M |
| Net Margin % | 1.18% | 0.44% | 1.24% | 2.33% | 1.34% | 2.74% | 2.67% | 2.58% | -0.31% | 3.58% | 2.99% | 3.42% | 3.33% | 3.62% | 3.14% | 3.23% | 3.58% | 3.76% | 3.67% | 3.45% | 3.12% | 3.31% | 3% | 3.19% | 2.96% | 1.86% | 3.71% | 3.51% | 2.52% | 0.65% | 1.76% |
| Net Income Growth % | 8.28% | -61.68% | -44.7% | 93.55% | -46.12% | 11.45% | 8.22% | 1216.84% | -108.97% | 24.54% | 1.53% | 12.77% | 1.13% | 18.84% | 11.61% | 1.02% | -7.28% | 15.07% | 21.81% | 92.64% | 11.77% | 33.29% | 8.44% | 18.24% | 73.43% | -44.61% | 17.46% | 65.18% | 333% | -57.35% | 136.35% |
| EPS (Diluted) | 3.82 | 1.39 | 3.66 | 6.47 | 3.26 | 5.95 | 5.46 | 5.08 | -0.57 | 6.44 | 4.90 | 4.63 | 3.96 | 3.74 | 3.03 | 2.57 | 2.49 | 2.55 | 2.18 | 1.92 | 1.60 | 1.45 | 1.10 | 1.03 | 0.88 | 0.50 | 0.92 | 0.78 | 0.48 | 0.10 | 0.26 |
| EPS Growth % | 5.61% | -62.02% | -43.43% | 98.47% | -45.21% | 8.97% | 7.48% | 991.23% | -108.85% | 31.43% | 5.83% | 16.92% | 5.88% | 23.43% | 17.9% | 3.21% | -2.35% | 16.97% | 13.54% | 20% | 10.34% | 31.82% | 6.8% | 17.05% | 76% | -45.65% | 17.95% | 62.5% | 405.26% | -63.46% | 117.11% |
| EPS (Basic) | - | 1.40 | 3.66 | 6.49 | 3.29 | 6.00 | 5.48 | 5.10 | -0.57 | 6.47 | 4.93 | 4.66 | 3.98 | 3.77 | 3.05 | 2.59 | 2.51 | 2.58 | 2.23 | 1.97 | 1.65 | 1.49 | 1.13 | 1.06 | 0.90 | 0.51 | 0.94 | 0.80 | 0.48 | 0.10 | 0.27 |
| Diluted Shares Outstanding | 1.28B | 1.27B | 1.26B | 1.29B | 1.32B | 1.33B | 1.31B | 1.3B | 1.04B | 1.02B | 1.08B | 1.13B | 1.17B | 1.23B | 1.28B | 1.35B | 1.38B | 1.45B | 1.47B | 1.37B | 853.2M | 841.6M | 822.36M | 808.45M | 810.6M | 797M | 799.34M | 817.8M | 810.4M | 790.53M | 426.4M |
Quick answers to the most common questions about buying CVS stock.
For fiscal year 2025, CVS Health Corp. (CVS) reported total revenue of $402.07B. This represents a 3298.2% increase compared to $11.83B in 1996.
CVS Health Corp. (CVS) is profitable, generating $1.77B in net income for the fiscal year ending 2025 with a net profit margin of 0.4%.
CVS Health Corp. (CVS) reported an operating income of $10.38B, resulting in an operating profit margin of 2.6%. This margin reflects the operational efficiency of the business before interest and taxes.
CVS Health Corp. (CVS) generated $55.36B in gross profit for the year, representing a gross profit margin of 13.8%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Elevated medical utilization and regulatory scrutiny
Metrics are mathematically derived from official filings.
Premium Growth Accelerates on Integrated Model
CVS's revenue grew 7.3% year-over-year in 2026Q2, reaching $106.1B, driven by the integrated pharmacy and insurance model, as reported in the latest quarterly filing.
The 7.3% revenue growth in 2026Q2 marks an acceleration from the 6.2% in the prior quarter and the 4.2% in 2024Q4, suggesting that the company's integrated model is gaining traction. This growth appears to be broad-based, with the Pharmacy Services segment benefiting from increased drug volume and the Health Care Benefits segment from premium rate increases. However, the sustainability of this growth depends on the company's ability to manage medical costs and regulatory pressures.
Underwriting Profitability Stabilizes Near 95%
The combined ratio improved to 95.6% in 2026Q2 from 98.0% in 2025Q4, indicating underwriting profitability, though loss ratios remain elevated at 85.2%, per the income statement data.
The combined ratio has consistently remained below 100% over the past ten quarters, with the exception of 2025Q3 when it spiked to 103.1% due to a one-time charge. The recent improvement to 95.6% suggests that management's cost containment efforts are yielding results, but the loss ratio of 85.2% indicates that medical utilization remains a persistent headwind. Investors should monitor whether this stability can be maintained in the face of rising healthcare costs.
Reserve Releases Mask Underlying Pressure
Prior-year reserve releases appear to have contributed to earnings, as evidenced by the 2025Q3 net loss of $4.0B despite a combined ratio of 103.1%, suggesting potential reserve strengthening, based on reported figures.
The 2025Q3 loss of $4.0B, despite a combined ratio of 103.1%, indicates that the company may have taken a significant charge to strengthen reserves, possibly related to elevated medical utilization. This suggests that reported earnings in other quarters may have been flattered by favorable prior-year development. Analysts should scrutinize the reserve development in the footnotes to assess the quality of earnings.
Investment Income Not a Major Earnings Driver
Investment income data is unavailable for all periods, but given the company's focus on insurance and pharmacy operations, it likely contributes minimally to overall earnings, as per the income statement.
The absence of reported investment income suggests that CVS's earnings are primarily driven by underwriting and pharmacy margins rather than investment returns. This is consistent with a health insurer that typically holds conservative, fixed-income portfolios. As interest rates remain elevated, there may be some tailwind from higher yields, but the impact is likely modest compared to the scale of premium revenue.
Expense Ratio Reflects Scale but Debt Looms
The expense ratio, derived from the combined ratio and loss ratio, averaged around 10.4% in 2026Q2, indicating operational efficiency, but the 124% debt-to-equity ratio signals high leverage, as per the financial data.
The expense ratio of approximately 10.4% (95.6% combined minus 85.2% loss) suggests that CVS is achieving scale efficiencies in its PBM and retail operations. However, the company's substantial debt load, reflected in the 124% debt-to-equity ratio, increases interest expense and financial risk. This leverage may limit the company's flexibility to invest in growth initiatives or weather adverse developments.
Earnings Quality Questioned by Utilization and Regulation
The 2026Q2 EPS of $2.58 beat consensus, but elevated medical utilization and regulatory scrutiny on PBM practices may challenge the sustainability of this performance, as reported in recent filings.
While the recent earnings beat and raised guidance suggest operational momentum, the persistent headwind of elevated medical utilization among seniors could cap margin expansion. Additionally, increased regulatory scrutiny on vertical integration and PBM pricing practices poses a risk to the company's business model. If these factors materialize, they could erode the synergies that underpin CVS's integrated platform, potentially leading to a re-rating of the stock.