CVS Health stock has risen over 18% year-to-date, outperforming the S&P 500, with Wall Street analysts projecting a further 22% upside to a consensus target of $114.59 per share.
The pharmacy chain's strong performance is attributed to two consecutive quarters of estimates-beating earnings in Q1 and Q2 2026, where it topped revenue and profitability consensus. Notably, its non-GAAP net income per share reached $2.57 in Q1 and $2.58 in Q2, exceeding analyst expectations. The company also raised its guidance for both quarters. A key driver is its healthcare benefits segment, anchored by Aetna, which saw a significant drop in its medical benefit ratio (MBR) and a 52% year-over-year rise in adjusted operating income in Q1, followed by an 85% increase in Q2. UBS analyst Kevin Caliendo, among others, has raised his price target for CVS Health, citing improvements in healthcare benefits and growing prospects for its retail business.
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