CVS HEALTH Corp
For the period ended Sep 30, 2026. Filed Nov 4, 2026.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2026 · Filed Nov 4, 2026
CVS$83.85+3.1%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2026-06-30; filed 2026-08-05.
0000064803-26-000098
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-09-30; filed 2026-11-04.
0000064803-26-000108
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 157 previous paragraphs and 171 current paragraphs.
94 unchanged; 48 reworded; 29 added; 14 removed; 1 previous and 0 current paragraphs rearranged.
Tables are not compared: 14 previous and 14 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (29)
Current report
CVS Health’s Intention to Separate into Two Independent, Publicly Traded Companies
Current report
On November 4, 2026, CVS Health announced its intention to separate into two independent, publicly traded companies in a transaction that is intended to be tax-free to CVS Health and its shareholders for U.S. federal income tax purposes. The planned separation will create two companies: a healthcare solutions company comprising Aetna, CVS Caremark, CVS Specialty, Oak Street Health and Signify Health, and a retail pharmacy and community healthcare company comprising retail pharmacy, mail pharmacy, MinuteClinic (including virtual care), and the Health100 technology services business. The healthcare solutions company, in the interim, will be referred to as CVS Health. The retail pharmacy and community healthcare company will be named CVS Pharmacy. The separation is expected to be completed in the first half of 2028, subject to customary conditions, including, among others, final approval by the CVS Health Board of Directors, effectiveness of a Form 10 registration statement filed with the SEC and receipt of customary confirmation that the separation is expected to be tax-free to CVS Health and its shareholders.
Current report
•Total revenues increased $5.5 billion, or 5.4%, in the three months ended September 30, 2026 compared to the prior year primarily driven by growth in the Health Services and Health Care Benefits segments.
Current report
•Operating expenses increased slightly in the three months ended September 30, 2026 compared to the prior year primarily due to continued business investments and a contingent guarantee liability recorded in connection with agreements to resolve certain litigation and Chapter 11 bankruptcy matters involving Omnicare, LLC (“Omnicare”) in the three months ended September 30, 2026. These increases were largely offset by the absence of a $320 million opioid litigation charge recorded in the prior year.
Current report
Operating income (loss)
Current report
•During the three months ended September 30, 2026, the Company generated operating income of $3.6 billion compared to an operating loss of $3.2 billion in the prior year. The difference was primarily driven by the absence of a $5.7 billion goodwill impairment charge related to the Health Care Delivery reporting unit recorded in the prior year, as well as improved operating performance across all operating segments.
Current report
Gain on deconsolidation of subsidiary
Current report
•During the three months ended September 30, 2025, the gain on deconsolidation of subsidiary relates to Omnicare, a wholly-owned indirect subsidiary of CVS Health Corporation, and certain of its subsidiary entities (collectively, the “Omnicare Entities”). See Note 1 ‘‘Significant Accounting Policies’’ to the unaudited condensed consolidated financial statements for further information on the deconsolidation of the Omnicare Entities.
Current report
•Total revenues increased $18.5 billion, or 6.3%, in the nine months ended September 30, 2026 compared to the prior year primarily driven by growth in the Health Services and Health Care Benefits segments.
Current report
•Operating income increased $10.4 billion, or 408.2%, in the nine months ended September 30, 2026 compared to the prior year primarily due to the absence of the $5.7 billion goodwill impairment charge and the $1.2 billion in legacy litigation charges, both recorded in the prior year, as well as improved operating performance across all operating segments.
Current report
Gain on deconsolidation of subsidiary
Current report
•During the nine months ended September 30, 2025, the gain on deconsolidation of subsidiary relates to Omnicare and certain of its subsidiary entities.
Current report
(4)During the three and nine months ended September 30, 2026, the Omnicare guarantee relates to an estimated contingent guarantee liability recorded in connection with agreements to resolve certain litigation and Chapter 11 bankruptcy matters involving Omnicare. Following bankruptcy court approval of the agreements in August 2026 and the determination that the sale of Omnicare’s assets is probable of occurring in the fourth quarter of 2026, the Company recorded an estimated contingent guarantee liability in the third quarter of 2026. The Omnicare guarantee is reflected in operating expenses within the Corporate/Other Segment.
Current report
(5)During the three and nine months ended September 30, 2025, the goodwill impairment charge relates to the Health Care Delivery reporting unit within the Health Services segment.
Current report
(6)During the three and nine months ended September 30, 2025, the Health Care Delivery clinic closure charge primarily relates to the write down of long-lived assets in connection with the closure of certain Oak Street Health clinics in 2026, as well as associated severance and employee-related costs. The Health Care Delivery clinic closure charge was reflected in operating expenses within the Health Services segment.
Current report
(7)During the three and nine months ended September 30, 2025, the opioid litigation charge relates to a change in the Company’s accrual related to ongoing opioid litigation matters.
Current report
•Operating expenses remained consistent in the three months ended September 30, 2026 compared to the prior year.
Current report
•Adjusted operating income increased $598 million, or 190.4%, in the three months ended September 30, 2026 compared to the prior year primarily driven by improved underlying performance in the Government business.
Current report
•Operating expenses increased $251 million, or 1.8%, in the nine months ended September 30, 2026 compared to the prior year primarily driven by increased business investments.
Current report
The Patient Protection and Affordable Care Act and the Health Care and Education Reconciliation Act of 2010 (collectively, the “ACA”) ties a portion of each Medicare Advantage plan’s reimbursement to the plan’s “star ratings.” Plans must have a star rating of four or higher (out of five) to qualify for bonus payments. CMS released the Company’s 2027 star ratings in October 2026. The Company’s 2027 star ratings will be used to determine which of the Company’s Medicare Advantage plans have ratings of four stars or higher and qualify for bonus payments in 2028. Based on the Company’s membership as of September 2026, more than 69% of the Company’s Medicare Advantage members were in plans with 2027 star ratings of at least 4.0 stars, compared to more than 81% of the Company’s Medicare Advantage members being in plans with 2026 star ratings of at least 4.0 stars based on the Company’s membership as of September 2025.
Current report
•Operating expenses remained consistent in the three months ended September 30, 2026 compared to the prior year.
Current report
Goodwill impairment
Current report
•During the three months ended September 30, 2025, the Company recorded a $5.7 billion goodwill impairment charge related to the Health Care Delivery reporting unit within the Health Services segment.
Current report
•Pharmacy claims processed increased 1.3% on a 30-day equivalent basis in the three months ended September 30, 2026 compared to the prior year.
Current report
Goodwill impairment
Current report
•During the nine months ended September 30, 2025, the Company recorded a $5.7 billion goodwill impairment charge related to the Health Care Delivery reporting unit within the Health Services segment.
Current report
•Operating expenses increased $72 million, or 1.4%, in the three months ended September 30, 2026 compared to the prior year primarily due to continued business investments.
Current report
•Total revenues increased $72 million, or 54.1%, in the three months ended September 30, 2026 compared to the prior year driven by an increase in net investment income, reflecting net realized capital gains in the three months ended September 30, 2026 compared to net realized capital losses in the prior year.
Current report
•Adjusted operating loss increased $76 million, or 19.8%, in the three months ended September 30, 2026 compared to the prior year primarily driven by increased business investments.
Removed paragraphs (14)
Previous report
•Total revenues increased $7.2 billion, or 7.3%, in the three months ended June 30, 2026 compared to the prior year driven by revenue growth across all operating segments.
Previous report
•Operating expenses decreased $166 million, or 1.5%, in the three months ended June 30, 2026 compared to the prior year primarily due to the absence of $833 million in legacy litigation charges recorded in the prior year, partially offset by continued business investments and operating expenses to support increased volume from the Rite Aid asset acquisitions.
Previous report
•Operating income increased $2.3 billion, or 97.5%, in the three months ended June 30, 2026 compared to the prior year primarily due to improved operating performance across all operating segments, as well as the absence of $833 million in legacy litigation charges recorded in the prior year.
Previous report
•Total revenues increased $13.0 billion, or 6.7%, in the six months ended June 30, 2026 compared to the prior year driven by revenue growth across all operating segments.
Previous report
Operating income
Previous report
•Operating income increased $3.6 billion, or 63.0%, in the six months ended June 30, 2026 compared to the prior year primarily due to improved operating performance in the Health Care Benefits segment, as well as the absence of the $1.2 billion in legacy litigation charges and the $288 million in pre-tax losses on the wind down and sale of Accountable Care assets, both recorded in the prior year.
Previous report
•Operating expenses increased $139 million, or 3.1%, in the three months ended June 30, 2026 compared to the prior year primarily driven by increased business investments.
Previous report
•Adjusted operating income increased $1.1 billion, or 85.5%, for the three months ended June 30, 2026 compared to the prior year primarily driven by improved underlying performance in the Government business and the absence of the premium deficiency reserve recorded in the prior year.
Previous report
•Operating expenses increased $226 million, or 2.5%, in the six months ended June 30, 2026 compared to the prior year primarily driven by increased business investments.
Previous report
•Operating expenses decreased $236 million, or 20.2%, in the three months ended June 30, 2026 compared to the prior year primarily driven by the absence of a $291 million legacy litigation charge recorded in the prior year.
Previous report
•Pharmacy claims processed remained consistent on a 30-day equivalent basis in the three months ended June 30, 2026 compared to the prior year.
Previous report
•Operating expenses decreased $168 million, or 3.2%, in the three months ended June 30, 2026 compared to the prior year primarily due to the absence of a $542 million legacy litigation charge recorded in the prior year, partially offset by continued business investments and operating expenses to support increased volume from the Rite Aid asset acquisitions.
Previous report
•Total revenues increased $51 million, or 53.1%, in the three months ended June 30, 2026 compared to the prior year driven by an increase in net investment income, reflecting increased income from private equity and equity fund investments and higher average fixed income investments in the three months ended June 30, 2026.
Previous report
•Adjusted operating loss increased $64 million, or 15.5%, in the three months ended June 30, 2026 compared to the prior year primarily driven by increased business investments.
Reworded paragraphs (48)
Previous wording
The following discussion explains the material changes in the Company’s operating results for the three and six months ended June 30, 2026 and 2025, and the significant developments affecting the Company’s financial condition since December 31, 2025. We strongly recommend that you read our audited consolidated financial statements and notes thereto and Management’s Discussion and Analysis of Financial Condition and Results of Operations, which are included in the 2025 Form 10-K.
Current wording
The following discussion explains the material changes in the Company’s operating results for the three and nine months ended September 30, 2026 and 2025, and the significant developments affecting the Company’s financial condition since December 31, 2025. We strongly recommend that you read our audited consolidated financial statements and notes thereto and Management’s Discussion and Analysis of Financial Condition and Results of Operations, which are included in the 2025 Form 10-K.
Previous wording
•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. The change in the effective income tax rate was primarily due to the absence of the impact of the non-deductible legacy litigation charges recorded in the prior year.
Current wording
•The effective income tax rate was 23.8% for the three months ended September 30, 2026 compared to (14.6)% for the three months ended September 30, 2025. The change in the effective income tax rate was primarily due to the absence of the $5.7 billion goodwill impairment charge recorded in the prior year, which was not deductible for income tax purposes.
Previous wording
•Operating expenses decreased $244 million, or 1.1%, in the six months ended June 30, 2026 compared to the prior year primarily due to the absence of $1.2 billion in legacy litigation charges and $288 million in pre-tax losses on the wind down and sale of Accountable Care assets, both recorded in the prior year, partially offset by continued business investments, operating expenses to support increased volume from the Rite Aid asset acquisitions and the retroactive effect of a change in a state law related to non-income taxes.
Current wording
•Operating expenses decreased $200 million, or 0.6%, in the nine months ended September 30, 2026 compared to the prior year primarily due to the absence of $1.2 billion in legacy litigation charges, the $320 million opioid litigation charge and $288 million in pre-tax losses on the wind down and sale of Accountable Care assets, all recorded in the prior year. These decreases were partially offset by continued business investments, operating expenses to support increased volume from the Rite Aid asset acquisitions and the Omnicare contingent guarantee liability described above recorded in the nine months ended September 30, 2026.
Previous wording
•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. The change in the effective income tax rate was primarily due to the absence of the impact of the non-deductible legacy litigation charges recorded in the prior year.
Current wording
•The effective income tax rate was 24.5% for the nine months ended September 30, 2026 compared to 252.8% for the nine months ended September 30, 2025. The change in the effective income tax rate was primarily due to the absence of the impact of the goodwill impairment charge and the legacy litigation charges recorded in the prior year, both of which were not deductible for income tax purposes.
Previous wording
•Utilization persisted at elevated levels in the second quarter of 2026. Although the level of utilization is difficult to accurately predict, utilization beyond current elevated levels may pressure the Company’s Health Care Benefits segment and its health care delivery assets in its Health Services segment in 2026.
Current wording
•Utilization persisted at elevated levels in the third quarter of 2026. Although the level of utilization is difficult to accurately predict, utilization beyond current elevated levels may pressure the Company’s Health Care Benefits segment and its health care delivery assets in its Health Services segment in 2026.
Previous wording
(1)Total revenues of the Health Services segment include approximately $2.8 billion and $2.7 billion of retail co-payments for the three months ended June 30, 2026 and 2025, respectively, and $6.6 billion and $6.4 billion of retail co-payments for the six months ended June 30, 2026 and 2025, respectively.
Current wording
(1)Total revenues of the Health Services segment include approximately $2.4 billion of retail co-payments in each of the three months ended September 30, 2026 and 2025, and approximately $9.0 billion and $8.8 billion of retail co-payments for the nine months ended September 30, 2026 and 2025, respectively.
Previous wording
The following are reconciliations of consolidated operating income (GAAP measure) to consolidated adjusted operating income, as well as reconciliations of segment GAAP operating income (loss) to segment adjusted operating income (loss):
Current wording
The following are reconciliations of consolidated operating income (loss) (GAAP measure) to consolidated adjusted operating income, as well as reconciliations of segment GAAP operating income (loss) to segment adjusted operating income (loss):
Previous wording
(3)During the three and six months ended June 30, 2026 and 2025, the acquisition-related integration costs relate to the acquisitions of Signify Health and Oak Street Health. The acquisition-related integration costs are reflected in operating expenses within the Corporate/Other segment.
Current wording
(3)During the three and nine months ended September 30, 2026 and 2025, the acquisition-related integration costs relate to the acquisitions of Signify Health and Oak Street Health. The acquisition-related integration costs are reflected in operating expenses within the Corporate/Other segment.
Previous wording
(4)During the three and six months ended June 30, 2025, the Company recorded legacy litigation charges related to two court decisions associated with its past business practices. The legacy litigation charges were reflected in operating expenses within the Pharmacy & Consumer Wellness and Health Services segments.
Current wording
(8)During the nine months ended September 30, 2025, the Company recorded legacy litigation charges related to two court decisions associated with its past business practices. The legacy litigation charges were reflected in operating expenses within the Pharmacy & Consumer Wellness and Health Services segments.
Previous wording
(5)During the three and six months ended June 30, 2025, the loss on the wind down and sale of Accountable Care assets represents the pre-tax loss on the divestiture of the Company’s Medicare Shared Savings Program (“MSSP”) operations, as well as costs incurred in connection with the wind down of the Company’s ACO REACH operations. The loss on Accountable Care assets was reflected in operating expenses within the Health Services segment.
Current wording
(9)During the nine months ended September 30, 2025, the loss on the wind down and sale of Accountable Care assets represents the pre-tax loss on the divestiture of the Company’s Medicare Shared Savings Program (“MSSP”) operations, as well as costs incurred in connection with the wind down of the Company’s ACO REACH operations. The loss on Accountable Care assets was reflected in operating expenses within the Health Services segment.
Previous wording
(6)During the three and six months ended June 30, 2025, the office real estate optimization charges primarily relate to the abandonment of leased real estate and the related right-of-use assets and property and equipment in connection with the Company’s evaluation of corporate office real estate space. The office real estate optimization charges were reflected in operating expenses within each segment.
Current wording
(10)During the nine months ended September 30, 2025, the office real estate optimization charges primarily relate to the abandonment of leased real estate and the related right-of-use assets and property and equipment in connection with the Company’s evaluation of corporate office real estate space. The office real estate optimization charges were reflected in operating expenses within each segment.
Previous wording
•Total revenues increased $1.3 billion, or 3.5%, in the three months ended June 30, 2026 compared to the prior year primarily driven by an increase in the Government business, partially offset by a decline as a result of the Company’s exit of the individual exchange business in 2026.
Current wording
•Total revenues increased $862 million, or 2.4%, in the three months ended September 30, 2026 compared to the prior year primarily driven by an increase in the Government business, partially offset by a decline as a result of the Company’s exit of the individual exchange business in 2026.
Previous wording
•The MBR decreased to 87.4% in the three months ended June 30, 2026 compared to 89.9% in the prior year primarily driven by improved underlying performance in the Government business and the absence of a $471 million premium deficiency reserve recorded within the Group Medicare Advantage product line in the prior year.
Current wording
•The MBR decreased to 91.3% in the three months ended September 30, 2026 compared to 92.8% in the prior year primarily driven by improved underlying performance in the Government business.
Previous wording
•Total revenues increased $2.4 billion, or 3.4%, in the six months ended June 30, 2026 compared to the prior year primarily driven by an increase in the Government business, partially offset by a decline as a result of the Company’s exit of the individual exchange business in 2026.
Current wording
•Total revenues increased $3.3 billion, or 3.1%, in the nine months ended September 30, 2026 compared to the prior year primarily driven by an increase in the Government business, partially offset by a decline as a result of the Company’s exit of the individual exchange business in 2026.
Previous wording
•The MBR decreased to 86.0% in the six months ended June 30, 2026 compared to 88.6% in the prior year primarily driven by improved underlying performance in the Government business and the absence of $902 million of premium deficiency reserves recorded as health care costs in the prior year, partially offset by lower favorable prior period development.
Current wording
•The MBR decreased to 87.8% in the nine months ended September 30, 2026 compared to 90.0% in the prior year primarily driven by improved underlying performance in the Government business and the absence of the premium deficiency reserves recorded as health care costs in the prior year, partially offset by lower favorable prior period development.
Previous wording
•Adjusted operating income increased $2.2 billion, or 65.6%, in the six months ended June 30, 2026 compared to the prior year primarily driven by improved underlying performance in the Government business and the absence of the premium deficiency reserves recorded in the prior year, partially offset by lower favorable prior period development.
Current wording
•Adjusted operating income increased $2.8 billion, or 76.5%, in the nine months ended September 30, 2026 compared to the prior year primarily driven by improved underlying performance in the Government business and the absence of the premium deficiency reserves recorded in the prior year, partially offset by lower favorable prior period development.
Previous wording
•Medical membership as of June 30, 2026 of 26.0 million remained consistent compared with March 31, 2026.
Current wording
•Medical membership as of September 30, 2026 of 26.1 million remained consistent compared with June 30, 2026.
Previous wording
•Medical membership as of June 30, 2026 of 26.0 million decreased approximately 700,000 members compared with June 30, 2025 reflecting the Company’s exit of the individual exchange business in 2026, partially offset by an increase in Commercial ASC membership.
Current wording
•Medical membership as of September 30, 2026 of 26.1 million decreased approximately 600,000 members compared with September 30, 2025 reflecting the Company’s exit of the individual exchange business in 2026, partially offset by an increase in Commercial ASC membership.
Previous wording
•Total revenues increased $5.3 billion, or 11.5%, in the three months ended June 30, 2026 compared to the prior year primarily driven by pharmacy drug mix and brand inflation, partially offset by continued pharmacy client price improvements.
Current wording
•Total revenues increased $4.7 billion, or 9.5%, in the three months ended September 30, 2026 compared to the prior year primarily driven by pharmacy drug mix and brand inflation, partially offset by continued pharmacy client price improvements.
Previous wording
•Adjusted operating income increased $158 million, or 10.0%, in the three months ended June 30, 2026 compared to the prior year primarily driven by improved purchasing economics, pharmacy drug mix and modest improvement in the
Current wording
•Adjusted operating income increased $56 million, or 2.7%, in the three months ended September 30, 2026 compared to the prior year primarily driven by improved purchasing economics and pharmacy drug mix, partially offset by continued pharmacy client price improvements.
Previous wording
•Total revenues increased $10.1 billion, or 11.3%, in the six months ended June 30, 2026 compared to the prior year primarily driven by pharmacy drug mix and brand inflation, partially offset by continued pharmacy client price improvements.
Current wording
•Total revenues increased $14.8 billion, or 10.6%, in the nine months ended September 30, 2026 compared to the prior year primarily driven by pharmacy drug mix and brand inflation, partially offset by continued pharmacy client price improvements.
Previous wording
•Operating expenses decreased $440 million, or 19.6%, in the six months ended June 30, 2026 compared to the prior year primarily due to the absence of the $291 million legacy litigation charge and $288 million in pre-tax losses on the wind down and sale of Accountable Care assets, both recorded in the prior year.
Current wording
•Operating expenses decreased $432 million, or 13.7%, in the nine months ended September 30, 2026 compared to the prior year primarily due to the absence of a $291 million legacy litigation charge and $288 million in pre-tax losses on the wind down and sale of Accountable Care assets, both recorded in the prior year.
Previous wording
•Adjusted operating income increased slightly in the six months ended June 30, 2026 compared to the prior year primarily driven by improved purchasing economics, pharmacy drug mix and modest improvement in the Company’s health care delivery business. These increases were largely offset by continued pharmacy client price improvements.
Current wording
•Adjusted operating income increased $100 million, or 1.9%, in the nine months ended September 30, 2026 compared to the prior year primarily driven by improved purchasing economics, pharmacy drug mix and modest improvement in the Company’s health care delivery business. These increases were partially offset by continued pharmacy client price improvements.
Previous wording
•The Company’s pharmacy claims processed remained consistent on a 30-day equivalent basis in the six months ended June 30, 2026 compared to the prior year.
Current wording
•The Company’s pharmacy claims processed increased 0.8% on a 30-day equivalent basis in the nine months ended September 30, 2026 compared to the prior year.
Previous wording
•Total revenues increased slightly in the three months ended June 30, 2026 compared to the prior year primarily driven by pharmacy drug mix, increased prescription volume, including contributions from the Company’s Rite Aid asset acquisitions which were completed during the third quarter of 2025, and brand inflation. These increases were largely offset by regulatory-related price reductions on certain drugs, the impact of recent generic drug introductions and pharmacy reimbursement pressure.
Current wording
•Total revenues decreased $716 million, or 2.0%, in the three months ended September 30, 2026 compared to the prior year primarily driven by regulatory-related price reductions on certain drugs, the impact of recent generic drug introductions and pharmacy reimbursement pressure. These decreases were partially offset by pharmacy drug mix, increased prescription volume, including contributions from the Company’s Rite Aid asset acquisitions which were completed during the third quarter of 2025, and brand inflation.
Previous wording
•Pharmacy same store sales increased 3.0% in the six months ended June 30, 2026 compared to the prior year. The increase was primarily driven by pharmacy drug mix, the 6.9% increase in pharmacy same store prescription volume on a 30-day equivalent basis and brand inflation. These increases were partially offset by regulatory-related price reductions on certain drugs, the impact of recent generic drug introductions and pharmacy reimbursement pressure.
Current wording
•Pharmacy same store sales decreased 0.6% in the three months ended September 30, 2026 compared to the prior year. The decrease was primarily driven by regulatory-related price reductions on certain drugs, the impact of recent generic drug introductions and pharmacy reimbursement pressure. These decreases were largely offset by pharmacy drug mix, the 3.9% increase in pharmacy same store prescription volume on a 30-day equivalent basis and brand inflation.
Previous wording
•Front store same store sales increased 1.0% in the three months ended June 30, 2026 compared to the prior year.
Current wording
•Front store same store sales decreased 0.6% in the three months ended September 30, 2026 compared to the prior year.
Previous wording
•Adjusted operating income increased $137 million, or 10.2%, in the three months ended June 30, 2026 compared to the prior year primarily driven by core pharmacy strength and contributions from the Company’s Rite Aid asset acquisitions. These increases were partially offset by continued business investments and the impact of consumer dynamics.
Current wording
•Adjusted operating income increased $157 million, or 10.6%, in the three months ended September 30, 2026 compared to the prior year primarily driven by core pharmacy strength and contributions from the Company’s Rite Aid asset acquisitions. These increases were partially offset by continued business investments and the impact of consumer dynamics.
Previous wording
•Prescriptions filled represents the number of prescriptions dispensed through the Pharmacy & Consumer Wellness segment’s retail pharmacies and infusion services operations, as well as through the Omnicare, LLC (“Omnicare”) long-term care pharmacies prior to their deconsolidation during the third quarter of 2025. Management uses this metric to understand variances between actual prescriptions dispensed and expected amounts as well as trends in period-over-period results. This metric provides management and investors with information useful in understanding the impact of prescription volume on segment total revenues and operating results.
Current wording
•Prescriptions filled represents the number of prescriptions dispensed through the Pharmacy & Consumer Wellness segment’s retail pharmacies and infusion services operations, as well as through the Omnicare long-term care pharmacies prior to their deconsolidation during the third quarter of 2025. Management uses this metric to understand variances between actual prescriptions dispensed and expected amounts as well as trends in period-over-period results. This metric provides management and investors with information useful in understanding the impact of prescription volume on segment total revenues and operating results.
Previous wording
•Prescriptions filled increased 4.3% on a 30-day equivalent basis in the three months ended June 30, 2026 compared to the prior year primarily driven by incremental volume resulting from the Company’s Rite Aid prescription file acquisitions and increased utilization, partially offset by the absence of long-term care pharmacy prescription volume following the deconsolidation of Omnicare in September 2025.
Current wording
•Prescriptions filled increased 1.9% on a 30-day equivalent basis in the three months ended September 30, 2026 compared to the prior year primarily driven by increased utilization and incremental volume resulting from the Company’s Rite Aid prescription file acquisitions, partially offset by the absence of long-term care pharmacy prescription volume following the deconsolidation of Omnicare in September 2025.
Previous wording
•Total revenues increased slightly in the six months ended June 30, 2026 compared to the prior year primarily driven by pharmacy drug mix, increased prescription volume, including contributions from the Company’s Rite Aid asset acquisitions, and brand inflation. These increases were largely offset by regulatory-related price reductions on certain drugs, the impact of recent generic drug introductions and pharmacy reimbursement pressure.
Current wording
•Total revenues decreased slightly in the nine months ended September 30, 2026 compared to the prior year primarily driven by regulatory-related price reductions on certain drugs, the impact of recent generic drug introductions and pharmacy reimbursement pressure. These decreases were largely offset by pharmacy drug mix, increased prescription volume, including contributions from the Company’s Rite Aid asset acquisitions, and brand inflation.
Previous wording
•Pharmacy same store sales increased 2.9% in the three months ended June 30, 2026 compared to the prior year. The increase was primarily driven by pharmacy drug mix, the 7.0% increase in pharmacy same store prescription volume on a 30-day equivalent basis and brand inflation. These increases were partially offset by regulatory-related price reductions on certain drugs, the impact of recent generic drug introductions and pharmacy reimbursement pressure.
Current wording
•Pharmacy same store sales increased 1.7% in the nine months ended September 30, 2026 compared to the prior year. The increase was primarily driven by pharmacy drug mix, the 5.8% increase in pharmacy same store prescription volume on a 30-day equivalent basis and brand inflation. These increases were partially offset by regulatory-related price reductions on certain drugs, the impact of recent generic drug introductions and pharmacy reimbursement pressure.
Previous wording
•Front store same store sales increased 1.1% in the six months ended June 30, 2026 compared to the prior year.
Current wording
•Front store same store sales increased 0.5% in the nine months ended September 30, 2026 compared to the prior year.
Previous wording
•Operating expenses decreased $347 million, or 3.3%, in the six months ended June 30, 2026 compared to the prior year primarily due to the absence of $929 million in legacy litigation charges recorded in the prior year, partially offset by continued business investments and operating expenses to support increased volume from the Rite Aid asset acquisitions.
Current wording
•Operating expenses decreased $275 million, or 1.8%, in the nine months ended September 30, 2026 compared to the prior year primarily due to the absence of $929 million in legacy litigation charges recorded in the prior year, partially offset by continued business investments and operating expenses to support increased volume from the Rite Aid asset acquisitions.
Previous wording
•Adjusted operating income increased slightly in the six months ended June 30, 2026 compared to the prior year primarily driven by core pharmacy strength and contributions from the Company’s Rite Aid asset acquisitions. These increases were largely offset by continued business investments and the impact of consumer dynamics.
Current wording
•Adjusted operating income increased $178 million, or 4.3%, in the nine months ended September 30, 2026 compared to the prior year primarily driven by core pharmacy strength and contributions from the Company’s Rite Aid asset acquisitions. These increases were partially offset by continued business investments and the impact of consumer dynamics.
Previous wording
•Prescriptions filled increased 4.0% on a 30-day equivalent basis in the six months ended June 30, 2026 compared to the prior year primarily driven by incremental volume resulting from the Company’s Rite Aid prescription file acquisitions and increased utilization, partially offset by the absence of long-term care pharmacy prescription volume following the deconsolidation of Omnicare.
Current wording
•Prescriptions filled increased 3.2% on a 30-day equivalent basis in the nine months ended September 30, 2026 compared to the prior year primarily driven by increased utilization and incremental volume resulting from the Company’s Rite Aid prescription file acquisitions, partially offset by the absence of long-term care pharmacy prescription volume following the deconsolidation of Omnicare.
Previous wording
•Total revenues increased $44 million, or 19.2%, in the six months ended June 30, 2026 compared to the prior year driven by an increase in net investment income, reflecting increased income from private equity and equity fund investments in the six months ended June 30, 2026.
Current wording
•Total revenues increased $116 million, or 32.0%, in the nine months ended September 30, 2026 compared to the prior year driven by an increase in net investment income, reflecting lower net realized capital losses and increased income from private equity and equity fund investments in the nine months ended September 30, 2026.
Previous wording
•Adjusted operating loss increased $311 million, or 41.9%, in the six months ended June 30, 2026 compared to the prior year primarily driven by the retroactive effect of a change in a state law related to non-income taxes and increased business investments.
Current wording
•Adjusted operating loss increased $387 million, or 34.4%, in the nine months ended September 30, 2026 compared to the prior year primarily driven by the retroactive effect of a change in a state law related to non-income taxes and increased business investments.
Previous wording
The Company maintains a level of liquidity sufficient to allow it to meet its cash needs in the short-term. Over the long term, the Company manages its cash and capital structure to maximize shareholder return, maintain its financial condition and maintain flexibility for future strategic initiatives. The Company continuously assesses its regulatory capital requirements, working capital needs, debt and leverage levels, debt maturity schedule, capital expenditure requirements, dividend payouts, potential share repurchases and future investments or acquisitions. The Company believes its operating cash flows, commercial paper program, credit facilities, as well as any potential future borrowings, will be sufficient to fund these future payments and long-term initiatives. As of June 30, 2026, the Company had approximately $11.3 billion in cash and cash equivalents, approximately $2.7 billion of which was held by the parent company or nonrestricted subsidiaries.
Current wording
The Company maintains a level of liquidity sufficient to allow it to meet its cash needs in the short-term. Over the long term, the Company manages its cash and capital structure to maximize shareholder return, maintain its financial condition and maintain flexibility for future strategic initiatives. The Company continuously assesses its regulatory capital requirements, working capital needs, debt and leverage levels, debt maturity schedule, capital expenditure requirements, dividend payouts, potential share repurchases and future investments or acquisitions. The Company believes its operating cash flows, commercial paper program, credit facilities, as well as any potential future borrowings, will be sufficient to fund these future payments and long-term initiatives. As of September 30, 2026, the Company had approximately $11.7 billion in cash and cash equivalents, approximately $5.9 billion of which was held by the parent company or nonrestricted subsidiaries.
Previous wording
The net change in cash, cash equivalents and restricted cash during the six months ended June 30, 2026 and 2025 was as follows:
Current wording
The net change in cash, cash equivalents and restricted cash during the nine months ended September 30, 2026 and 2025 was as follows:
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Previous report — wording carried elsewhere
Company’s health care delivery business. These increases were partially offset by continued pharmacy client price improvements.