CVS · 10-Q · 2026Q2 · Full report

Legacy Litigation Charges

CVS HEALTH Corp · 2026-08-05 · Importance 72 · Surprise 100

CVS Health recorded $1.2 billion of legacy litigation charges during the six months ended June 30, 2025 related to two court decisions concerning past business practices. The charges included $929 million in the Pharmacy & Consumer Wellness segment and $291 million in the Health Services segment, and were absent in the corresponding 2026 period. The absence of these charges materially increased six-month 2026 operating income and reduced operating expenses compared with 2025.

Key facts

• Health Services segment operating expenses decreased $236 million, or 20.2%, in the three months ended June 30, 2026 primarily due to the absence of a $291 million legacy litigation charge recorded in the prior year. source
• Pharmacy & Consumer Wellness segment operating expenses decreased $168 million, or 3.2%, in the three months ended June 30, 2026 primarily due to the absence of a $542 million legacy litigation charge recorded in the prior year. source
• Operating expenses decreased $244 million, or 1.1%, in the six months ended June 30, 2026 primarily due to the absence of $1.2 billion in legacy litigation charges and $288 million in pre-tax losses on the wind down and sale of Accountable Care assets recorded in the prior year. source
• Consolidated legacy litigation charges recorded in prior periods referenced: $833 million (three months prior year), $1.2 billion (six months prior year), $291 million (Health Services prior year), $542 million (Pharmacy & Consumer Wellness prior year), and $929 million (six months prior year aggregate mentioned). source