CVS Health (CVS) Is Up 5.3% After Raising 2025–26 Outlook And Unveiling New AI Platform - Has The Bull Case Changed?

• In early December 2025, CVS Health raised its 2025 and 2026 revenue and earnings guidance, forecasting at least US$400.00 billion in annual sales, higher GAAP operating income, and narrower 2025 per-share losses despite planning a US$5.73 billion goodwill impairment.
• The company also unveiled an artificial intelligence-driven open consumer engagement platform designed to tightly connect its Aetna insurance, pharmacy benefit management, retail pharmacy, and care delivery operations into a single, more convenient experience.
• We’ll now examine how CVS Health’s upgraded 2025–2026 outlook and new AI-enabled engagement platform influence its existing investment narrative.

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CVS Health Investment Narrative Recap

To own CVS Health, you need to believe its integrated model across insurance, pharmacy benefits, retail and care delivery can translate its huge revenue base into sustainably higher margins. The raised 2025 and new 2026 guidance support that narrative in the near term, while the planned US$5.73 billion goodwill impairment underscores how past acquisitions still weigh on reported earnings and remain a key risk.

The launch of CVS’s artificial intelligence driven open consumer engagement platform is especially relevant here, because it aims to make that integration more tangible for customers by linking Aetna, Caremark, pharmacy and care delivery into a single experience. Investors watching for margin improvement and stabilization of medical cost trends will likely track how quickly this platform is adopted and whether it meaningfully boosts engagement and efficiency.

Yet even with upgraded guidance, investors should still pay close attention to persistently elevated medical benefit ratios and...

Read the full narrative on CVS Health (it's free!)

CVS Health’s narrative projects $445.1 billion revenue and $8.3 billion earnings by 2028. This requires 5.0% yearly revenue growth and an earnings increase of about $3.8 billion from $4.5 billion today.

Uncover how CVS Health's forecasts yield a $92.44 fair value, a 17% upside to its current price.

Exploring Other Perspectives

Six members of the Simply Wall St Community currently value CVS Health between US$82 and about US$247 per share, showing how far opinions can stretch. You can weigh those views against concerns about persistent margin pressure in key segments and consider what that might mean for CVS Health’s ability to convert its large revenue base into stronger long term profitability.

Explore 6 other fair value estimates on CVS Health - why the stock might be worth just $82.44!

Build Your Own CVS Health Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• 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.
• Our free CVS Health research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate CVS Health's overall financial health at a glance.

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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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