CVS (CVS) Valuation After Upgraded 2025–2026 Guidance and New AI-Driven Consumer Platform

CVS Health (CVS) just reset the bar for its turnaround, lifting its 2025 and 2026 guidance and laying out mid teens earnings growth targets through 2028 while unveiling an AI native consumer engagement platform.

See our latest analysis for CVS Health.

The updated guidance and AI platform plans have clearly caught investors’ attention. CVS Health’s 1 day share price return of 2.36% adds to an 82.79% year to date share price return and a 70% 1 year total shareholder return, suggesting momentum is rebuilding after a tougher multi year stretch.

If this kind of healthcare turnaround story interests you, it is worth exploring other names in the sector using healthcare stocks as a starting point for fresh ideas.

Yet with the stock up sharply this year, now trading below but closer to analyst targets, and with management touting mid teens earnings growth into 2028, is CVS still mispriced or has the market already baked in its comeback?

Most Popular Narrative Narrative: 12.6% Undervalued

With CVS Health last closing at $80.83 versus a narrative fair value near $92.44, the story hinges on a long run earnings and margin rebuild.

Analysts expect earnings to reach $8.3 billion (and earnings per share of $6.85) by about September 2028, up from $4.5 billion today. However, there is a considerable amount of disagreement amongst the analysts with the most bullish expecting $10.1 billion in earnings, and the most bearish expecting $3.8 billion.

Read the complete narrative.

Curious how modest revenue growth, a fatter margin profile and a lower future earnings multiple can still justify a higher value than today? The narrative spells out that math.

Result: Fair Value of $92.44 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, persistent medical cost pressures and slower than expected Medicare Advantage margin recovery could derail the earnings rebound that underpins today’s undervaluation narrative.

Find out about the key risks to this CVS Health narrative.

Build Your Own CVS Health Narrative

If you are not fully aligned with this view or would rather dive into the numbers yourself, you can quickly craft a personalized thesis in under three minutes: Do it your way.

A great starting point for your CVS Health research is our analysis highlighting 3 key rewards and 4 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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