What Happened?
Shares of diversified healthcare company CVS Health (NYSE:CVS) jumped 3.2% in the morning session after the company raised its financial guidance for 2025 and provided a strong forecast for 2026 at its Investor Day event.
The healthcare company boosted its 2025 adjusted earnings per share (EPS) forecast to a range of $6.60 to $6.70. For 2026, CVS Health projected an adjusted EPS of $7.00 to $7.20, which was above Wall Street estimates. Looking further ahead, the company committed to a mid-teens adjusted EPS compound annual growth rate through 2028. These updates signaled that the company’s turnaround plan was making steady progress. CVS also announced a new artificial intelligence-driven platform aimed at integrating its health insurance, pharmacy, and healthcare services into a single app, supporting its strategy to simplify the consumer experience.
After the initial pop the shares cooled down to $79.10, up 3.4% from previous close.
Is now the time to buy CVS Health? Access our full analysis report here.
What Is The Market Telling Us
CVS Health’s shares are not very volatile and have only had 9 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.
The biggest move we wrote about over the last year was 10 months ago when the stock gained 16.4% on the news that the company reported fourth-quarter results that exceeded expectations, with same-store sales significantly surpassing analysts' forecasts and EPS outperforming Wall Street's estimates by a wide margin. Growth was powered by strong performance in the Pharmacy & Consumer Wellness segment. On the other hand, its full-year EPS guidance missed. Despite this, we think this was a decent quarter.
CVS Health is up 78.9% since the beginning of the year, and at $79.10 per share, it is trading close to its 52-week high of $83.04 from October 2025. Investors who bought $1,000 worth of CVS Health’s shares 5 years ago would now be looking at an investment worth $1,076.
The 1999 book Gorilla Game predicted Microsoft and Apple would dominate tech before it happened. Its thesis? Identify the platform winners early. Today, enterprise software companies embedding generative AI are becoming the new gorillas. Click here for access to our special report that reveals one profitable leader already riding this wave.