CVS · 10-Q · 2026Q3 · Full report

Operating Expense Trends

CVS HEALTH Corp · 2026-11-04 · Importance 21 · Surprise 32

Consolidated operating expenses were $33.322 billion for the nine months ended September 30, 2026, down $200 million, or 0.6%, from 2025. The decrease primarily reflected the absence of $1.2 billion in legacy litigation charges, a $320 million opioid litigation charge and $288 million of pre-tax losses on the wind down and sale of Accountable Care assets, all recorded in 2025. These reductions were partly offset by continued business investments, costs supporting increased Rite Aid acquisition volume and an Omnicare contingent guarantee liability recorded in 2026. Pharmacy & Consumer Wellness nine-month operating expenses declined $275 million, or 1.8%, to $15.413 billion, primarily because $929 million of prior-year legacy litigation charges did not recur, partly offset by business investment and Rite Aid-related volume costs.

Key facts

• Health Services operating expenses decreased $432 million, or 13.7%, in the first nine months of 2026, primarily because the prior year included a $291 million legacy litigation charge and $288 million in pre-tax Accountable Care asset wind-down and sale losses. source
• Operating expenses decreased $200 million, or 0.6%, in the first nine months of 2026, mainly due to the absence of $1.2 billion in legacy litigation charges, a $320 million opioid litigation charge and $288 million in pre-tax Accountable Care asset wind-down and sale losses recorded in 2025. source
• Health Care Benefits segment operating expenses increased $251 million, or 1.8%, in the first nine months of 2026, primarily due to increased business investments. source
• Pharmacy & Consumer Wellness operating expenses increased $72 million, or 1.4%, in third-quarter 2026, primarily due to continued business investments. source
• Pharmacy & Consumer Wellness operating expenses decreased $275 million, or 1.8%, in the first nine months of 2026, primarily due to the absence of $929 million in prior-year legacy litigation charges, partly offset by continued investments and Rite Aid volume-related costs. source
• Third-quarter 2026 operating expenses increased slightly, mainly due to continued business investments and an Omnicare contingent guarantee liability, partly offset by the absence of a $320 million prior-year opioid litigation charge. source
• Heightened geopolitical tensions could increase the likelihood of economic slowdown, recession, financial-market volatility, supply-chain costs or disruptions, interest-rate or policy fluctuations, and cyberattacks that could negatively affect CVS Health's financial results. source
• The first-nine-month operating expense decrease was partly offset by continued business investments, costs supporting increased Rite Aid acquisition volume, and the 2026 Omnicare contingent guarantee liability. source