CVS Health (XSWX:CVS) Operating Income: CHF9,308 Mil (TTM As of Mar. 2026)


XSWX:CVS CVS Health Corp XSWX:CVS
77 GF Score
Price CHF83.03
GF Value CHF63.19
! 10 Warning Signs
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What is CVS Health Operating Income?

CVS Health XSWX:CVS -0.93% 77 Operating Income is CHF9,308 Mil as of Mar. 2026. GuruFocus rates XSWX:CVS with a GF Score™ of 77/100 and a GF Value™ of CHF63.19. The stock has 10 warning signs investors should review.

CVS Health's Operating Income for the three months ended in Mar. 2026 was CHF3,685 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2026 was CHF9,308 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. CVS Health's Operating Income for the three months ended in Mar. 2026 was CHF3,685 Mil. CVS Health's Revenue for the three months ended in Mar. 2026 was CHF79,065 Mil. Therefore, CVS Health's Operating Margin % for the quarter that ended in Mar. 2026 was 4.66%.

Warning Sign:

CVS Health Corp operating margin has been in a 5-year decline. The average rate of decline per year is -15.2%.

CVS Health's 5-Year average Growth Rate for Operating Margin % was -15.20% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. CVS Health's annualized ROC % for the quarter that ended in Mar. 2026 was 7.56%. CVS Health's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 was 67.10%.

CVS Health  (XSWX:CVS) Operating Income Explanation

1. Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

CVS Health's annualized ROC % for the quarter that ended in Mar. 2026 is calculated as:

ROC % (Q: Mar. 2026 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Dec. 2025 ) + Invested Capital (Q: Mar. 2026 ))/ count )
=14738.256 * ( 1 - 24.91% )/( (148020.19 + 144639.607)/ 2 )
=11066.9564304/146329.8985
=7.56 %

where

Invested Capital(Q: Dec. 2025 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=202044.432 - 65163.31 - ( 8445.546 - max(0, 70678.655 - 59539.587+8445.546))
=148020.19

Invested Capital(Q: Mar. 2026 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=199166.43 - 63650.843 - ( 9291.715 - max(0, 68027.444 - 58903.424+9291.715))
=144639.607

Note: The Operating Income data used here is four times the quarterly (Mar. 2026) data.

2. Joel Greenblatt's definition of Return on Capital:

CVS Health's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 is calculated as:

ROC (Joel Greenblatt) %(Q: Mar. 2026 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Dec. 2025  Q: Mar. 2026
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=14839.032/( ( (22357.826 + max(-33656.274, 0)) + (21869.619 + max(-31299.113, 0)) )/ 2 )
=14839.032/( ( 22357.826 + 21869.619 )/ 2 )
=14839.032/22113.7225
=67.10 %

where Working Capital is:

Working Capital(Q: Dec. 2025 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(13002.22 + 15337.137 + 4057.019) - (65163.31 + 0 + 889.34)
=-33656.274

Working Capital(Q: Mar. 2026 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(15859.371 + 13990.321 + 3348.386) - (63650.843 + 0 + 846.348)
=-31299.113

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Mar. 2026) EBIT data.

3. Operating Income is also linked to Operating Margin %:

CVS Health's Operating Margin % for the quarter that ended in Mar. 2026 is calculated as:

Operating Margin %=Operating Income (Q: Mar. 2026 )/Revenue (Q: Mar. 2026 )
=3684.564/79065.39
=4.66 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

4. Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the Operating Income growth rate using Operating Income per share data.

Be Aware

Compared with a company's EBITDA margin, Operating Margin can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).

If a company is facing competition, its Operating Margin may decline. Often the Operating Margin declines well before the company's revenue or even profit decline. Therefore, Operating Margin is a very important indicator of whether the company is facing problems.

For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokia's Operating Margin had already been in decline since 2002, although its earnings per share were still rising. Investors who paid attention to Operating Margin would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).

Therefore, Operating Margin is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.

CVS Health Operating Income Related Terms

CVS Health Operating Income Historical Data

* Premium members only.

The historical data trend for CVS Health's Operating Income can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

CVS Health Operating Income Chart

CVS Health Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Operating Income
Get a 7-Day Free Trial Premium Member Only Premium Member Only 13,906.18 15,175.76 12,625.22 8,644.06 8,275.81

CVS Health Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
Operating Income Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 2,981.27 1,936.23 2,004.58 1,683.05 3,684.56
XSWX:CVS
77GF Score
CVS Health Corp XSWX:CVS
Operating Income is just one metric. See GF Score™, valuation, warning signs, and more.
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CVS Health Operating Income Calculation

Operating Income, is the profit a company earned through operations. All expenses, including cash expenses such as cost of goods sold (COGS), research & development, wages, and non-cash expenses, such as depreciation, depletion and amortization, have been deducted from the sales.

Operating Income for the trailing twelve months (TTM) ended in Mar. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was CHF9,308 Mil.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Frequently Asked Questions Learn more about Operating Income →
What does a Operating Income of CHF9,308 Mil mean?
CVS Health (XSWX:CVS) has a Operating Income of CHF9,308 Mil as of Mar. 2026. Operating Income equals sales less all operating expenses. It is linked to EBIT. View historical data on CVS Health and its competitors.
Is CVS Health's Operating Income too high?
CVS Health's current Operating Income is CHF9,308 Mil. Overall, CVS Health has a GF Score™ of 77/100, reflecting its overall financial health beyond just this single metric.
How does CVS Health's Operating Income compare to ELV and CI?
CVS Health's Operating Income of CHF9,308 Mil can be compared against companies in the Healthcare Plans industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Operating Income for a Healthcare Plans company?
A good Operating Income depends on the Healthcare Plans industry context. However, Operating Income should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Operating Income mean?
A high Operating Income can signal that a stock is expensive relative to its fundamentals. Operating Income equals sales less all operating expenses. It is linked to EBIT. View historical data on CVS Health and its competitors. CVS Health's current Operating Income is CHF9,308 Mil. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is CVS Health stock overvalued right now?
CVS Health (XSWX:CVS) has a current Operating Income of CHF9,308 Mil. The stock's GF Value™ is CHF63.19, compared to a current price of CHF83.03 — trading 31.4% above its estimated fair value. The current Operating Income is CHF9,308 Mil. CVS Health's overall GF Score™ is 77/100 with 10 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Income calculated?
Operating Income is calculated from a company's financial statements. For CVS Health (XSWX:CVS), the current Operating Income is CHF9,308 Mil as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is CVS Health (XSWX:CVS) Overvalued in 2026?

Based on GuruFocus' analysis, CVS Health stock appears to be overvalued. The current stock price of CHF83.03 is trading 31.4% above its estimated GF Value™ of CHF63.19.

Key valuation signals for XSWX:CVS:

  • Operating Income: CHF9,308 Mil
  • GF Value™: CHF63.19 vs. price of CHF83.03 (31.4% above fair value)
  • GF Score™: 77/100 with 10 warning signs

No single metric tells the full story. See the XSWX:CVS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

CVS Health Business Description

Address One CVS Drive, Woonsocket, RI, USA, 02895
CVS Health offers a diverse set of healthcare services. Its roots are in its retail pharmacy operations, where it operates around 9,000 stores primarily in the US. CVS is also a large pharmacy benefit manager (acquired through Caremark), processing about 2 billion adjusted claims annually. It operates a top-tier health insurer (acquired through Aetna) through which it serves about 27 million medical members. The acquisition of Oak Street Health added primary care services to the mix, which could have significant synergies with all existing business lines.
77GF Score

Get the complete analysis for XSWX:CVS

Operating Income is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

CHF83.03
Price
CHF63.19
GF Value