CVS Health faces an unquantified headwind from its 340B drug discount programme heading into 2027, management warned during its fiscal Q2 2026 earnings call in August. The company's shares have fallen 15.2% over the past three months, even as management raised its 2026 earnings outlook. The 340B business, which serves eligible healthcare organisations, is experiencing pressure as drugmakers limit programme coverage. Management expects this drag to continue affecting its pharmacy services business in 2027 but declined to quantify the potential impact. CVS's Health Services segment, which likely includes the 340B business, generated $190.4 billion in revenue during fiscal 2025. The company trades at 22.5 times trailing earnings, roughly level with the S&P 500's 22.4 multiple.

CVS Health's Omnicare division has completed its Chapter 11 bankruptcy liquidation after selling its business operations for $250 million. A Texas bankruptcy judge approved the wind-down plan following a $440 million settlement with the Justice Department over improper billing practices. Omnicare, which served nursing homes and long-term care facilities, filed for bankruptcy in September 2025 after facing a $949 million judgement for fraudulently dispensing drugs without valid prescriptions and billing federal healthcare programmes for false claims. The settlement requires CVS to pay $130 million upfront and cover the remaining $310 million if Omnicare fails to do so by March 2028. GenieRx Holdings, a joint partnership between Milrose Capital and Integro Asset Management, purchased Omnicare's operations. The sale is expected to close next month.

CVS Health shares have declined 2.1% over the past three months, prompting investors to consider whether now is an opportune time to buy. The healthcare giant, which operates approximately 9,000 retail pharmacy locations and serves more than 35 million people through its health insurance business, reported second-quarter revenue of $106 billion, up 7.3% year-over-year. Adjusted earnings per share rose 43% in the same period. The company offers a dividend yield of 2.8%, with its annual payout increasing from $2 in 2021 to $2.66 per share recently. Shares currently trade at $95, with one analyst setting a price target of $120. The stock's forward price-to-earnings ratio of 11 sits slightly above its five-year average of 10.