CVS · 10-Q · 2026Q2 · Full report

Income Tax Rate Changes

CVS HEALTH Corp · 2026-08-05 · Importance 55 · Surprise 82

The effective income tax rate decreased to 24.7% in the second quarter of 2026 from 38.5% in the second quarter of 2025. For the first six months, the effective rate declined to 24.8% from 34.5%. The lower rates were primarily caused by the absence of the prior-year impact from nondeductible legacy litigation charges. Despite the lower rates, the income tax provision increased 54.9% to $1.5 billion in the quarter and 33.6% to $2.0 billion year to date because pretax income increased substantially.

Key facts

• The effective income tax rate was 24.7% for the three months ended June 30, 2026 compared to 38.5% for the three months ended June 30, 2025. source
• The effective income tax rate was 24.8% for the six months ended June 30, 2026 compared to 34.5% for the six months ended June 30, 2025. source
• Income tax provision was $1,963 million for the three months ended June 30, 2026. source