CVS · 8-K · 20260805PR000097
Gross Margin Drivers
CVS HEALTH Corp · 2026-08-05 · Importance 36 · Surprise 40 · From source text
Health Services second-quarter gross profit increased $265 million, or 11.7%, to $2.537 billion, while gross margin remained 4.9%. Pharmacy & Consumer Wellness gross profit increased $507 million, or 8.4%, to $6.534 billion, and gross margin expanded to 19.3% from 17.9%. Pharmacy & Consumer Wellness margin benefited from pharmacy drug mix, increased prescription volume, Rite Aid asset acquisition contributions, and lower cost of products sold of $272 million. Health Services gross profit growth reflected higher revenue, but pharmacy client price improvements and health care costs up 22.6% to $1.350 billion limited margin expansion.
Key facts
- Projected amortization of intangible assets for full-year 2026 guidance: $1,730 million ($1.34 per share) source
- Consolidated cost of products sold for Q2 2026: $58,862 million versus $54,005 million in Q2 2025 source
- Projected net realized capital losses for full-year 2026 guidance: $29 million ($0.02 per share) source
- Health Services adjusted operating income increase was driven by improved purchasing economics, pharmacy drug mix and modest improvement in health care delivery business, partially offset by continued pharmacy client price improvements source
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| operating_income | negative | realized | -4.6% | Consolidated cost of products sold for Q2 2026: $58,862 million versus $54,005 million in Q2 2025 |
| net_income | negative | committed | -0.0% | Projected net realized capital losses for full-year 2026 guidance: $29 million ($0.02 per share) |
| operating_income | negative | committed | — | Projected amortization of intangible assets for full-year 2026 guidance: $1,730 million ($1.34 per share) |