CVS Health raised its full-year outlook for its Health Care Benefits segment after stronger underlying performance in the first half of the year, now expecting adjusted operating income of $5.03-$5.37 billion, more than $1 billion above its earlier guidance. The company guided to a full-year medical benefit ratio of 89.8%, plus or minus 25 basis points, saying the forecast takes a prudent view of second-half medical cost trends. Health Care Benefits revenues rose more than 3% year over year to above $37 billion in the second quarter of 2026, helped by strength in the Government business, while medical membership stood at approximately 26 million, unchanged sequentially but down about 700,000 from the prior-year quarter, largely reflecting CVS Health's exit from the Individual exchange business. Adjusted operating income for the segment was approximately $2.4 billion and the MBR was 87.4%, both meaningfully improved year over year, with changes in the individual exchange risk adjustment position related to the 2025 plan year and favorable prior-year development together contributing approximately $500 million, or 140 bps, to the quarter's MBR. Separately, Cardinal Health entered into a binding Letter of Intent to extend its existing distribution agreement with CVS Health through June 30, 2032, reaffirming its fiscal 2027 non-GAAP earnings per share growth guidance of 13% to 15%, or $12.40 to $12.60, and its long-term non-GAAP EPS growth outlook of 12% to 14%.
CVS Health CorpCVS Health raised its full-year Health Care Benefits outlook, now expecting adjusted operating income more than $1 billion above prior guidance.
Cardinal Health IncCardinal Health signed a binding LOI to extend its distribution agreement with CVS Health through June 2032, securing long-term product demand.
UnitedHealth Group Incorporated