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CVS Stock Down On Early Warnings About 2027 -- WSJ

CVS Stock Down On Early Warnings About 2027 -- WSJ

Dow JonesDow Jones2026/08/05 13:54

By Anna Wilde Mathews

CVS Health saw its shares dip about 6% even though it handily beat Wall Street's expectations for the most recent quarter and raised its guidance for 2026 earnings. The issue was the company's unusually early commentary about 2027.

The healthcare giant warned that membership in its Caremark pharmacy-benefits manager will decline next year, as it rewrites contracts to reflect a new pricing model and as some of its insurer clients pull back from certain markets. The warning comes amid broader investor concern about the evolving financial model of PBMs.

The company also flagged pressures related to the 340B drug-discount program. CVS offered a more upbeat view of continued improvements at Aetna, its insurance arm.

CVS said the current consensus adjusted earnings estimate for 2027 is a reasonable floor. The company remains confident in its forecast of mid-teens earnings growth through 2028. "We have some pressure in our PBM at the moment, more than offset by the strength we have across the enterprise," said CEO David Joyner.

This item is part of a Wall Street Journal live coverage event. The full stream can be found by searching P/WSJL (WSJ Live Coverage).

(END) Dow Jones Newswires

August 05, 2026 09:54 ET (13:54 GMT)

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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