CVS Management Meeting Takeaways

研报英文原文证据摘录

CVS Management Meeting Takeaways

June 16, 2026

Investment Conclusion

CVS remains one of our top picks given potential upside to the mid-teens EPS growth guidance through 2028, driven

by a combination of AET margin recapture, HSS earnings upside, and capital deployment. At HSS, we see upside /

cushion to our estimates given CVS has over $1B of losses from rebate guarantee headwind and under earning at

Oak Street which is not reflected in our #s. YE PT $110 or ~12x our $8.95 2027 EPS est.

●Medicaid and Commercial Trends Generally In-Line – For Medicaid, CVS remains focused on rate advocacy given

trend remains elevated with company indicating some positivity in terms of state response but too early to call.

Medicaid margin guidance remains at approximately -1%. Commercial trend also remains elevated, but given

disciplined pricing AET remains at target margins here in 2026.

●CVS Working Through Recent PBM Regulations – Recent legislation from Tennessee, Louisiana, and Arkansas

prohibiting PBM operation in states where the company also owns pharmacies was another investor focus.

Management discussed how it has held discussions with state officials and continues to note that Caremark pays

independent pharmacies higher prices vs. CVS pharmacies and how these laws would create significant gaps in

care delivery if ultimately passed. CVS noted that the Arkansas law has already been overturned in court, although

the co expects an appeal, and that the bill in Louisiana got turned around due to consumer advocacy against

the bill. In Tennessee, CVS is considering its options including legal recourse depending on how the situation

plays out. Other areas of focus were legislative / FTC driven changes to contracting / reimbursement models