• In December 2025, CVS Health raised its 2025 guidance to at least US$400.0 billion in revenue and higher GAAP operating income, while also forecasting a US$5.73 billion goodwill impairment.

• At the same time, CVS Health issued new 2026 guidance, signaling a reset of reported earnings around large non-cash charges amid mounting regulatory scrutiny and its Healthy 2030 sustainability agenda.

• We’ll now examine how CVS Health’s higher revenue and earnings guidance, despite sizable goodwill impairments, may influence its investment narrative.

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To own CVS Health, you need to believe its integrated insurance, pharmacy and care delivery model can translate very large revenue into improving profitability, despite recent earnings volatility. The raised 2025 revenue and operating income guidance, alongside a sizeable US$5.73 billion goodwill impairment, does not materially change the near term focus on stabilizing medical cost trends and easing reimbursement pressure, which remain the key catalyst and the biggest risk.

The new 2026 guidance, with at least US$400.0 billion in revenue and higher GAAP operating income, is most relevant here because it frames the goodwill write down as a reset for reported earnings rather than a shift in day to day cash generation. For investors watching CVS’s margin recovery efforts in health care delivery and insurance, this guidance provides a reference point for assessing whether operational fixes are starting to gain traction.

But against this backdrop of higher guidance, ongoing regulatory scrutiny and pharmacy reimbursement pressure remain risks investors should be aware of…

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 a $3.8 billion earnings increase from $4.5 billion today.

Uncover how CVS Health’s forecasts yield a $92.44 fair value, a 19% upside to its current price.

Five members of the Simply Wall St Community currently estimate CVS Health’s fair value between US$92.44 and US$224.35, highlighting very different return expectations. When you weigh those against rising guidance but persistent reimbursement and medical cost pressures, it underlines why understanding several viewpoints on CVS’s long term earnings power really matters.