CVS · 10-Q · 2026Q3 · Full report

Income Tax Rate Changes

CVS HEALTH Corp · 2026-11-04 · Importance 37 · Surprise 46

The effective income tax rate was 23.8% for the third quarter of 2026, compared with negative 14.6% in the third quarter of 2025. For the first nine months of 2026, the effective rate was 24.5%, compared with 252.8% in the prior-year period. The rate changes primarily reflected the absence of the prior-year $5.725 billion goodwill impairment and legacy litigation charges, which were not deductible for income tax purposes.

Key facts

• CVS Health's effective income tax rate was 24.5% in the first nine months of 2026 versus 252.8% in the first nine months of 2025, primarily due to the absence of prior-year goodwill impairment and legacy litigation charges, neither deductible for income tax purposes. source
• CVS Health's effective income tax rate was 23.8% in third-quarter 2026 versus (14.6)% in third-quarter 2025, primarily because the prior-year $5.7 billion goodwill impairment was not tax deductible. source