How does CVS Health (CVS) make money?

CVS Health (CVS) generates revenue primarily from Pharmacy Revenue, which accounted for 58.5% of total revenue in TTM through Q1 2026. The company reported $408B in revenue and converted 0.7% of it into net profit, equivalent to roughly $2.93B in net income — what's left after the cost of revenue, operating expenses, interest, and income taxes.

What is the gross profit margin of CVS Health (CVS)?

CVS Health (CVS) reported a gross profit margin of 13.9% in TTM through Q1 2026, equivalent to $56.6B in gross profit on $408B in revenue. Gross margin measures how much of each dollar of revenue remains after the direct cost of producing or delivering the product — a higher figure typically signals pricing power, scale, or a less capital-intensive business model.

What is the operating profit margin of CVS Health (CVS)?

CVS Health (CVS) reported an operating profit margin of 1.5% in TTM through Q1 2026, equivalent to $5.97B in operating income. Operating margin captures profitability after research & development, sales & marketing, and general & administrative expenses — but before interest, taxes, and one-off items — and is the cleanest single read on the underlying business's efficiency.

What is the net profit margin of CVS Health (CVS)?

CVS Health (CVS) reported a net profit margin of 0.7% in TTM through Q1 2026, equivalent to $2.93B in net income. Net margin is the bottom-line share of revenue that survives every expense — operating costs, interest, and income taxes — and is the figure that flows directly into earnings per share.

Is CVS Health (CVS) profitable?

Yes. CVS Health (CVS) reported $2.93B in net income for TTM through Q1 2026, with a net profit margin of 0.7%. The company earned more from its operations than it paid out in costs, interest, and income taxes, leaving positive earnings on the bottom line.

How much does CVS Health (CVS) spend on capital expenditures?

CVS Health (CVS) spent $2.94B on capital expenditures (CapEx) during TTM through Q1 2026, roughly 0.7% of total revenue. CapEx represents long-lived investment in property, equipment, data centres, and other physical infrastructure, and is subtracted from operating cash flow to arrive at free cash flow.

How much free cash flow does CVS Health (CVS) generate?

CVS Health (CVS) generated $7.39B in free cash flow during TTM through Q1 2026, a free-cash-flow margin of 1.8%. Free cash flow is the cash left after capital expenditures and represents the discretionary pool the company can use to pay dividends, repurchase shares, repay debt, or fund acquisitions without raising external capital.

What is the effective tax rate of CVS Health (CVS)?

CVS Health (CVS) had an effective tax rate of 16.4% in TTM through Q1 2026. The effective rate is the actual share of pre-tax income paid as income taxes and can differ materially from the statutory rate due to foreign earnings mix, tax credits (such as R&D), share-based compensation deductions, and one-off discrete items.

What are the main business segments of CVS Health (CVS)?

CVS Health (CVS) reports revenue across 5 reportable product segments, led by Pharmacy Revenue at 58.5% of total revenue in TTM through Q1 2026. See the revenue-by-segment table on this page for the full breakdown and how each segment feeds into the income-statement waterfall above.

How CVS Health Makes Money: 2026 Visual Revenue Map

CVS Health (CVS) Income Statement Flow — TTM through Q1 2026

Calculated from the four most recent reported quarters, ending March 31, 2026 (reported May 6, 2026).

CVS Health discloses geographic revenue only in annual filings. to view the full breakdown.

CVS Health (CVS) Revenue by Product Segment — TTM through Q1 2026

Aggregated from the four quarterly disclosures behind this TTM. Minor differences vs the company's annual filing can occur if reported segments changed mid-year.

Revenue contribution by product segment for CVS Health (CVS), TTM through Q1 2026.
Segment	Revenue (USD)	% of total
Pharmacy Revenue	$239B	58.5%
Premiums	$139B	34%
Front Store Revenue	$21.9B	5.4%
Product and Service, Other	$8.58B	2.1%
Corporate And Other Segment	$227M	0.1%
Total	$408B	100%

Pharmacy Revenue$239B
Premiums$139B
Front Store Revenue$21.9B
Product and Service, Other$8.58B
Corporate And Other Segment$227M
Total$408B

Revenue Breakdown — TTM through Q1 2026

In TTM through Q1 2026, CVS Health (CVS) reports revenue across 5 reportable product segments; the largest segment was Pharmacy Revenue at 58.5%, followed by Premiums (34%) and Front Store Revenue (5.4%).

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