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CVS Health Shares Hit 52-Week High After Q1 Beat and Raised Outlook

An improved claims ratio is easing cost fears for Aetna’s insurance unit.

Overview

  • CVS stock set a new 52-week high at $92.77, with year-to-date gains just over 16% compared with about 8% for the S&P 500.
  • First-quarter results showed revenue of $100.4 billion, up more than 6%, and net income just under $3 billion, up 66% from a year ago.
  • The medical benefit ratio fell to 84.6% from 87.3%, meaning CVS paid a smaller share of premiums out in medical claims.
  • CVS raised its 2026 guidance to earnings of $7.30 to $7.50 per share, projected revenue of at least $405 billion, and cash from operations of at least $9.5 billion.
  • Wells Fargo lifted its price target to $103 and kept an Overweight rating, citing room for estimate increases through 2026.