CVS HealthXSGO:CVS 76 Operating Margin % is 4.66% as of Mar. 2026, which is 9% below its 10-year median of 5.11. GuruFocus rates XSGO:CVS with a GF Score™ of 76/100 and a GF Value™ of $60.14. The stock has 10 warning signs investors should review. Among 15 Healthcare Plans companies, CVS Health ranks worse than 60% on this metric.
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 $4,680 Mil. CVS Health's Revenue for the
three
months ended in Mar. 2026 was $100,426 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%.
The historical rank and industry rank for CVS Health's Operating Margin % or its related term are showing as below:
XSGO:CVS'
s Operating Margin % Range Over the Past 10 Years
Min: 2.58 Med: 5.11 Max: 5.85
Current: 2.87
XSGO:CVS's Operating Margin % is ranked worse than 60% of 15
companies
in the Healthcare Plans industry
Industry Median: 3.1
vs XSGO:CVS: 2.87
CVS Health's 5-Year Average Operating Margin % Growth Rate was -15.20% per year.
CVS Health's Operating Income for the
three
months ended in Mar. 2026 was $4,680 Mil.
Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2026 was $11,691 Mil.
CVS Health (XSGO:CVS) Operating Margin % Explanation
Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.
Be Aware
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 Nokias Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) 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 Margin % Related Terms
CVS Health Operating Margin % Historical Data
* Premium members only.
The historical data trend for CVS Health's Operating Margin % 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.
XSGO:CVS vs ELV, CI, HUM: Operating Margin % Comparison
For the Healthcare Plans subindustry, CVS Health's Operating Margin %, along with its competitors' market caps and Operating Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
CVS Health Operating Margin % vs Healthcare Plans Industry
For the Healthcare Plans industry and Healthcare sector, CVS Health's Operating Margin % distribution charts can be found below:
* The bar in red indicates where CVS Health's Operating Margin % falls into.
Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.
CVS Health's Operating Margin % for the fiscal year that ended in Dec. 2025 is calculated as
* 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 (XSGO:CVS) has a Operating Margin % of 4.66% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on CVS Health and its competitors. This is near median its historical median of 5.11. Over the past decade, CVS Health's Operating Margin % has ranged from 2.58 to 5.85. According to the industry distribution chart, CVS Health ranks #9 out of 15 companies in the Healthcare Plans industry, placing it in the top 60%.
Is CVS Health's Operating Margin % too high?
CVS Health's current Operating Margin % of 4.66% is near median its 10-year median of 5.11. Over the past 10 years, this metric has ranged from a low of 2.58 to a high of 5.85. The Healthcare Plans industry median Operating Margin % is 3.10. CVS Health's value of 4.66% is 50.3% above this industry median. Based on the distribution chart, CVS Health ranks #9 out of 15 companies in the Healthcare Plans industry, which is below the industry midpoint. Overall, CVS Health has a GF Score™ of 76/100, reflecting its overall financial health beyond just this single metric.
How does CVS Health's Operating Margin % compare to ELV and CI?
According to the Healthcare Plans industry distribution chart, CVS Health ranks #9 out of 15 companies for Operating Margin %. This places CVS Health in the lower half of its industry. The industry median Operating Margin % is 3.10. CVS Health's value of 4.66% is 50.3% above this benchmark. Historically, CVS Health's own Operating Margin % has ranged from 2.58 to 5.85 over the past decade. While the company's 10-year median is 5.11 vs. the industry median of 3.10, CVS Health has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Operating Margin % for a Healthcare Plans company?
The median Operating Margin % among Healthcare Plans companies is 3.10, based on 15 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. CVS Health's current Operating Margin % of 4.66% is 50.3% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on CVS Health and its competitors. For the Healthcare Plans industry, the median Operating Margin % is 3.10 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. CVS Health's current Operating Margin % is 4.66%, which is near median its own 10-year median of 5.11. 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 (XSGO:CVS) has a current Operating Margin % of 4.66%. The stock's GF Value™ is $60.14, compared to a current price of $78.63 — trading 30.7% above its estimated fair value. The current Operating Margin % is 4.66%, which is near median its 10-year median of 5.11 and 50.3% above the Healthcare Plans industry median of 3.10. CVS Health's overall GF Score™ is 76/100 with 10 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For CVS Health (XSGO:CVS), the current Operating Margin % is 4.66% 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 (XSGO:CVS) Overvalued in 2026?
Based on GuruFocus' analysis, CVS Health stock appears to be overvalued.
The current stock price of $78.63 is trading 30.7% above its estimated GF Value™ of $60.14.
Key valuation signals for XSGO:CVS:
Operating Margin %: 4.66% (near median its 10-year median of 5.11)
GF Value™: $60.14 vs. price of $78.63 (30.7% above fair value)
Industry Position: 50.3% above the Healthcare Plans median (#9 of 15)
No single metric tells the full story. See the XSGO:CVS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
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.
76GF Score
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