Core Viewpoint - CVS Health Corporation is highlighted as a strong blue-chip stock for investment in 2026, with a consistent dividend history and positive market outlook from analysts [1][2]. Dividend Announcement - CVS Health's board approved a quarterly dividend of $0.665 per share, to be paid on February 2, 2026, to shareholders of record as of January 22, marking the 55th consecutive year of dividend payments [1]. Analyst Ratings and Price Target - Cantor Fitzgerald has reiterated CVS Health as a preferred stock for Medicare Advantage exposure, citing a favorable regulatory environment [2]. - Bernstein raised its price target for CVS from $86 to $87, maintaining a Market Perform rating, attributing the increase to the successful execution of a turnaround strategy [3]. Business Overview - CVS Health is a major U.S. healthcare company that integrates retail pharmacies, health insurance through Aetna, and pharmacy benefits management via CVS Caremark, providing a comprehensive health experience [4].

Core Insights - CVS Health reported total revenues of $102.9 billion for the third quarter of 2025, a 7.8% increase from $95.4 billion in the same period of 2024, driven by growth across all operating segments [3][7][18] - The company incurred a GAAP diluted loss per share of $3.13, which includes a $5.7 billion goodwill impairment charge related to the Health Care Delivery reporting unit [3][7][9] - Adjusted EPS for the third quarter was $1.60, up from $1.09 in the prior year, primarily due to improved adjusted operating income in the Health Care Benefits segment [3][7][18] Financial Highlights - Total revenues for the three months ended September 30, 2025, were $102.9 billion, compared to $95.4 billion in 2024, reflecting a change of $7.4 billion [3][5] - Operating income for the third quarter was a loss of $3.2 billion, down from an income of $832 million in the prior year, primarily due to the goodwill impairment charge [3][5][8] - Adjusted operating income increased by 35.8% to $3.5 billion, driven by the Health Care Benefits segment [3][8] - Year-to-date cash flow from operations was reported at $7.2 billion [7] Operational Highlights - Aetna achieved industry-leading Medicare Advantage Star Ratings, with over 81% of members in plans rated 4 stars or higher [7][8] - The company launched its annual vaccination campaign, offering updated flu and COVID-19 vaccines at CVS Pharmacy and MinuteClinic locations nationwide [7][8] - Caremark secured contract wins totaling nearly $6.0 billion, with high retention rates, emphasizing its commitment to value and transparency [7][8] Segment Performance Health Care Benefits Segment - Total revenues for the Health Care Benefits segment were $36.0 billion for the third quarter, up from $33.0 billion in 2024 [10][18] - Adjusted operating income improved to $314 million from a loss of $924 million in the prior year, with a medical benefit ratio of 92.8%, down from 95.2% [10][18] Health Services Segment - The Health Services segment reported revenues of $49.3 billion, an increase from $44.1 billion in 2024 [12][18] - Adjusted operating income decreased to $2.1 billion from $2.2 billion in the prior year, with pharmacy claims processed decreasing by 1.8% [12][19] Pharmacy & Consumer Wellness Segment - Total revenues for this segment increased to $36.2 billion, up from $32.4 billion in 2024, driven by pharmacy drug mix and increased prescription volume [14][18] - Prescriptions filled increased by 6.9% on a 30-day equivalent basis compared to the prior year [15][16] Guidance Updates - The company updated its full-year 2025 guidance, reflecting third-quarter performance in the Health Care Benefits and Pharmacy & Consumer Wellness segments, while noting a decrease in the Health Services segment [4][7] - GAAP diluted earnings per share guidance was revised to a range of $(0.34) to $(0.24), while adjusted EPS guidance was raised to $6.55 to $6.65 [7][8]