In the second quarter of 2026, CVS Health CVS delivered adjusted earnings per share (EPS) of $2.58, up more than 40% from the prior-year quarter. The strong earnings growth was mainly driven by improved adjusted operating income in the Health Care Benefits segment.
The division generated more than $37 billion in revenues, rising more than 3% year over year, as growth in the government business more than offset some of the impact of CVS’ planned exit from the Individual Exchange business in 2026. Medical membership was approximately 26 million at quarter end, flat sequentially but down roughly 700,000 from the prior-year quarter. The decline mainly reflected CVS’ Individual Exchange exit, partly offset by gains in commercial fee-based membership.
Adjusted operating income (AOI) came in at approximately $2.4 billion, while the medical benefit ratio (MBR) was 87.4%. Both improved meaningfully from the prior-year quarter as CVS continued executing its margin recovery plan.
CVS Health is beginning to see the results of actions taken at Aetna over the past two years. The company has strengthened its clinical programs, improved operations and maintained a disciplined approach to cost management and pricing. Those efforts have helped drive more than $2 billion in year-over-year AOI improvement so far this year.
The quarter’s results also included the impact of changes in the Individual Exchange risk adjustment position for the 2025 plan year and favorable prior-year development. These items contributed approximately 140 basis points to the MBR. Even excluding these items, CVS Health’s core performance came in ahead of expectations, driven largely by Medicare, owing to strong medical cost management and disciplined pricing. Medicaid and Commercial businesses performed in line with expectations.
Management now expects Health Care Benefits AOI of $5.03 billion to $5.37 billion for 2026, more than $1 billion above its previous guidance.
Key Developments Among CVS Health’s Peers
The Cigna Group CI delivered total revenues of $71.7 billion and adjusted EPS of $7.78 in the second quarter of 2026, up 7% and 8.1%, respectively. Specialty and Care Services benefited from secular tailwinds, along with strength at Accredo and its broader specialty pharmacy services. Cigna Healthcare also delivered results ahead of expectations, supported by customer growth in the U.S. employer business, disciplined pricing and execution, including in the stop-loss business.
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