CVS Health's (CVS) Q4 performance is expected to be in-line with $1.00 consensus EPS estimates and the results are likely to support the long-term thesis of Health Care Benefits margin improvement and future capital deployment, UBS said in a preview emailed Monday.

UBS said it expects reiteration of the adjusted EPS guidance for 2026, possibly a few cents higher in case of a Q4 EPS beat.

CVS Health is scheduled to report its Q4 results on Feb. 10.

The investment firm said that HCB guidance assumes a medical loss ratio of 90.5%, which is 50 basis points better than last year. This is a conservative estimate and a potential HCB upside is unlikely to be realized until Q2, the report said.

Given higher leverage, buybacks are unlikely to offer a significant opportunity for EPS growth in 2026, UBS said.

The firm's fiscal year 2025 and 2026 EPS estimates of $6.68 and $7.17 remain broadly unchanged, according to the note.

UBS kept a buy rating on CVS with a $97 price target.

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