By Anna Wilde Mathews

CVS Health reported earnings that beat analysts' expectations and kept its 2026 profit guidance unchanged, results that may soothe investors spooked by continued turmoil in the health-insurance sector.

In an interview, CVS Chief Financial Officer Brian Newman said the Aetna insurance unit's Medicaid business was seeing cost trends that were high, but in line with its expectations. He also said Medicare enrollment heading into 2026 is reflecting a slight decline, also similar to what the company projected.

The healthcare giant's net income in the fourth quarter was $2.92 billion, or $2.30 a share, compared with $1.62 billion, or $1.30 a share, a year earlier. Revenue totaled $105.69 billion, an increase from $97.71 billion a year earlier.

On an adjusted basis, the company on Tuesday reported earnings per share of $1.09, beating the FactSet analyst consensus projection of $1.

CVS also reaffirmed the 2026 earnings-per-share guidance it issued in December, though it tweaked the timing of some expected cash flow, which Newman said came earlier than expected.

Newman said CVS was in talks with the Federal Trade Commission, which in 2024 sued large pharmacy-benefit managers including CVS Caremark over their drug-pricing practices, "regarding a solution that hopefully eliminates any protracted litigation." The FTC recently announced a settlement with Cigna Group's Express Scripts.

Insurers' Medicaid and Medicare businesses are in focus for Wall Street, which sent down shares of Medicaid-focused companies late last week after one of them, Molina Healthcare, reported unexpectedly low fourth-quarter results and guidance for 2026.

Medicare has tripped up the finances of much of the insurance industry over the last few years, and the Centers for Medicare and Medicaid Services recently proposed 2027 rates for Medicare insurers that were well below what many analysts expected, sending shares down across the industry.

Newman characterized healthcare spending in Aetna's Medicaid business as "stable but elevated, in line with expectations." Medicare enrollment appears "flattish but slightly down" after the recent enrollment period for 2026, he said, as the company expected. He said Aetna is on a path toward the improved margins the company has promised.

Like others in the industry, Newman said the proposed 2027 Medicare rates fell short of what the company felt was needed based on cost trends. He said Aetna's leadership is "in dialogue with CMS, having conversations."

Write to Anna Wilde Mathews at anna.mathews@wsj.com

(END) Dow Jones Newswires

February 10, 2026 06:30 ET (11:30 GMT)

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