Segment Reporting (Tables)

12 Months Ended

Dec. 31, 2025

Reconciliation of Financial Measures of Segments to Consolidated Totals

The following are reconciliations of financial measures of the Company’s segments to the consolidated totals:


	Year Ended December 31, 2025
In millions	Health Care Benefits		Health Services (1)		Pharmacy & Consumer Wellness		Corporate/ Other		Consolidated Totals
Revenues from external customers	$	141,454	$	164,603	$	93,724	$	53	$	399,834
Intersegment revenues	118		25,802		45,643		—		71,563
Net investment income	1,782		20		—		431		2,233
Total revenues	143,354		190,425		139,367		484		473,630
Intersegment eliminations (2)									(71,563)
Total consolidated revenues									$	402,067
Less: Net realized capital gains (losses)	13		25		—		(82)
Cost of products sold	—		175,634		113,583		—
Health care costs	122,949		4,834		—		177
Other segment items (3)	17,453		2,781		19,744		2,076
Adjusted operating income (loss)	$	2,939	$	7,151	$	6,040	$	(1,687)	$	14,443

Reconciliation of principal measure of segment performance to consolidated operating income:
Amortization of intangible assets (4)									1,976
Net realized capital losses (5)									44
Acquisition-related integration costs (6)									117
Goodwill impairment (7)									5,725
Health Care Delivery clinic closure charge (8)									83

Opioid litigation charge (9)									320
Office real estate optimization charges (10)									10
Legacy litigation charges (11)									1,220
Loss on Accountable Care assets (12)									288
Operating income (GAAP measure)									4,660
Gain on deconsolidation of subsidiary (13)									483
Interest expense									(3,119)
Other income									112
Income before income tax provision									$	2,136

Depreciation and amortization	$	1,579	$	1,039	$	1,573	$	415	$	4,606


	Year Ended December 31, 2024
In millions	Health Care Benefits		Health Services (1)		Pharmacy & Consumer Wellness		Corporate/ Other		Consolidated Totals
Revenues from external customers	$	129,120	$	158,016	$	83,464	$	56	$	370,656
Intersegment revenues	72		15,304		41,036		—		56,412
Net investment income	1,473		285		—		395		2,153
Total revenues	130,665		173,605		124,500		451		429,221
Intersegment eliminations (2)									(56,412)
Total consolidated revenues									$	372,809
Less: Net realized capital gains (losses)	(97)		289		—		(75)
Cost of products sold	—		160,036		99,337		—
Health care costs	113,659		3,407		—		187
Other segment items (3)	16,796		2,630		19,389		1,687
Adjusted operating income (loss)	$	307	$	7,243	$	5,774	$	(1,348)	$	11,976

Reconciliation of principal measure of segment performance to consolidated operating income:
Amortization of intangible assets (4)									2,025
Net realized capital gains (5)									(117)
Acquisition-related integration costs (6)									243
Opioid litigation charge (9)									100
Office real estate optimization charges (10)									30
Restructuring charges (14)									1,179
Operating income (GAAP measure)									8,516
Interest expense									(2,958)
Gain on early extinguishment of debt (16)									491
Other income									99
Income before income tax provision									$	6,148

Depreciation and amortization	$	1,599	$	1,059	$	1,543	$	396	$	4,597


	Year Ended December 31, 2023
In millions	Health Care Benefits		Health Services (1)		Pharmacy & Consumer Wellness		Corporate/ Other		Consolidated Totals
Revenues from external customers	$	104,800	$	174,018	$	77,748	$	57	$	356,623
Intersegment revenues	81		12,826		39,020		—		51,927
Net investment income (loss)	765		(1)		(5)		394		1,153
Total revenues	105,646		186,843		116,763		451		409,703
Intersegment eliminations (2)									(51,927)
Total consolidated revenues									$	357,776
Less: Net realized capital losses	(402)		—		(5)		(90)
Cost of products sold	—		175,424		91,447		1
Health care costs	85,504		1,607		—		210
Other segment items (3)	14,967		2,500		19,358		1,648
Adjusted operating income (loss)	$	5,577	$	7,312	$	5,963	$	(1,318)	$	17,534

Reconciliation of principal measure of segment performance to consolidated operating income:
Amortization of intangible assets (4)									1,905
Net realized capital losses (5)									497
Acquisition-related transaction and integration costs (6)									487
Office real estate optimization charges (10)									46
Restructuring charges (14)									507

Loss on assets held for sale (15)									349

Operating income (GAAP measure)									13,743
Interest expense									(2,658)
Other income									88
Income before income tax provision									$	11,173

Depreciation and amortization	$	1,572	$	880	$	1,549	$	365	$	4,366

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(1)Total revenues of the Health Services segment include approximately $10.9 billion, $11.4 billion and $13.7 billion of retail co-payments for 2025, 2024 and 2023, respectively. See Note 1 ‘‘Significant Accounting Policies’’ for additional information about retail co-payments.

(2)Intersegment revenue eliminations relate to intersegment revenue generating activities that occur between the Health Care Benefits segment, the Health Services segment, and/or the Pharmacy & Consumer Wellness segment.

(3)Other segment items for each reportable segment includes operating expenses, which primarily consists of selling, general and administrative expenses. Other segment items excludes the impact of amortization of intangible assets and other items, if any, that neither relate to the ordinary course of the Company’s business nor reflect the Company’s underlying business performance.

(4)The Company’s acquisition activities have resulted in the recognition of intangible assets as required under the acquisition method of accounting which consist primarily of trademarks, customer contracts/relationships, covenants not to compete, technology, provider networks and value of business acquired. Definite-lived intangible assets are amortized over their estimated useful lives and are tested for impairment when events indicate that the carrying value may not be recoverable. The amortization of intangible assets is reflected in operating expenses within each segment. Although intangible assets contribute to the Company’s revenue generation, the amortization of intangible assets does not directly relate to the underwriting of the Company’s insurance products, the services performed for the Company’s customers or the sale of the Company’s products or services. Additionally, intangible asset amortization expense typically fluctuates based on the size and timing of the Company’s acquisition activity. Accordingly, the Company believes excluding the amortization of intangible assets enhances the Company’s and investors’ ability to compare the Company’s past financial performance with its current performance and to analyze underlying business performance and trends. Intangible asset amortization excluded from the related non-GAAP financial measure represents the entire amount recorded within the Company’s GAAP financial statements, and the revenue generated by the associated intangible assets has not been excluded from the related non-GAAP financial measure. Intangible asset amortization is excluded from the related non-GAAP financial measure because the amortization, unlike the related revenue, is not affected by operations of any particular period unless an intangible asset becomes impaired or the estimated useful life of an intangible asset is revised.

(5)The Company’s net realized capital gains and losses arise from various types of transactions, primarily in the course of managing a portfolio of assets that support the payment of insurance liabilities. Net realized capital gains and losses are reflected in net investment income (loss) within each segment. These capital gains and losses are the result of investment decisions, market conditions and other economic developments that are unrelated to the performance of the Company’s business, and the amount and timing of these capital gains and losses do not directly relate to the underwriting of the Company’s insurance products, the services performed for the Company’s customers or the sale of the Company’s products or services. Accordingly, the Company

believes excluding net realized capital gains and losses enhances the Company’s and investors’ ability to compare the Company’s past financial performance with its current performance and to analyze underlying business performance and trends.

(6)In 2025 and 2024, the acquisition-related integration costs relate to the acquisitions of Signify Health and Oak Street Health. In 2023, the acquisition-related transaction and integration costs relate to the acquisitions of Signify Health and Oak Street Health. The acquisition-related transaction and integration costs are reflected in operating expenses within the Corporate/Other segment.

(7)In 2025, the goodwill impairment charge relates to the Health Care Delivery reporting unit within the Health Services segment.

(8)In 2025, the Health Care Delivery clinic closure charge primarily relates to the write down of long-lived assets in connection with the planned closure of certain existing Oak Street Health clinics in 2026, as well as associated severance and employee-related costs expected to be incurred. The Health Care Delivery clinic closure charge is reflected in operating expenses within the Health Services segment.

(9)In 2025 and 2024, the opioid litigation charges relate to changes in the Company’s accrual related to ongoing opioid litigation matters.

(10)In 2025, 2024 and 2023, the office real estate optimization charges primarily relate to the abandonment of leased real estate and the related right-of-use assets and property and equipment in connection with the Company’s evaluation of corporate office real estate space in response to its ongoing flexible work arrangement. The office real estate optimization charges are reflected in operating expenses within each segment.

(11)In 2025, the Company recorded legacy litigation charges related to two court decisions associated with its past business practices.

In April 2025, a jury found Omnicare and CVS Health Corporation liable in connection with alleged violations of the federal False Claims Act related to dispensing practices by Omnicare from 2010, prior to its acquisition by the Company in 2015, through 2018. Damages were found only with respect to Omnicare. Accordingly, the Company recorded a litigation charge of $387 million during the first quarter of 2025. During the second quarter of 2025, the Company recorded a charge of $542 million, reflecting penalties assessed under the False Claims Act. These litigation charges are reflected in operating expenses within the Pharmacy & Consumer Wellness segment.

In June 2025, a court found certain subsidiaries of CVS Health Corporation liable for damages in connection with a complaint filed in February 2014, in which the government declined to intervene, related to PBM direct and indirect remuneration reporting practices for two clients from 2010 through 2016, which the Company has since modified. In connection with this court decision, the Company recorded a litigation charge of $291 million during the second quarter of 2025. This litigation charge is reflected in operating expenses within the Health Services segment.

(12)In 2025, the loss on the wind down and sale of Accountable Care assets represents the pre-tax loss on the divestiture of the Company’s MSSP operations, which the Company sold in March 2025, as well as costs incurred in connection with the process of winding down the Company’s ACO REACH operations. The loss on Accountable Care assets is reflected in operating expenses within the Health Services segment.

(13)In 2025, the gain on deconsolidation of subsidiary relates to Omnicare, a wholly-owned indirect subsidiary of CVS Health Corporation, and certain of its subsidiary entities. In September 2025, the Omnicare Entities voluntarily initiated Chapter 11 proceedings under the U.S. Bankruptcy Code, at which time the Company determined that it no longer retained control of the Omnicare Entities and deconsolidated the subsidiaries.

(14)In 2024, the restructuring charges are primarily comprised of a store impairment charge, corporate workforce optimization costs, including severance and employee-related costs, other asset impairment and related charges associated with the discontinuation of certain non-core assets, and a stock-based compensation charge. During the third quarter of 2024, the Company finalized an enterprise-wide restructuring plan intended to streamline and simplify the organization, improve efficiency and reduce costs. In connection with this restructuring plan, the Company completed a strategic review of its retail business and determined that it planned to close additional retail stores in 2025, and, accordingly, it recorded a store impairment charge to write down the associated lease right-of-use assets and property and equipment. In addition, during the third quarter of 2024, the Company also conducted a review of its various strategic assets and determined that it would discontinue the use of certain non-core assets, at which time impairment losses were recorded to write down the carrying value of these assets to the Company’s best estimate of their fair value. In 2023, the restructuring charges are primarily comprised of severance and employee-related costs, asset impairment charges and a stock-based compensation charge. The restructuring charges associated with the store impairments are reflected within the Pharmacy & Consumer Wellness segment, other asset impairments and related charges are reflected within the Corporate/Other and Pharmacy & Consumer Wellness segments and corporate workforce optimization costs, including severance and employee-related costs, as well as the stock-based compensation charge, are reflected within the Corporate/Other segment.

(15)In 2023, the loss on assets held for sale relates to the LTC business, which was included within the Pharmacy & Consumer Wellness segment prior to the deconsolidation of the Omnicare Entities in September 2025. During 2022, the Company determined that its LTC business was no longer a strategic asset and committed to a plan to sell it, at which time the LTC business met the criteria for held-for-sale accounting and its net assets were accounted for as assets held for sale. During the first quarter of 2023, a loss on assets held for sale was recorded to write down the carrying value of the LTC business to the Company’s best estimate of the ultimate selling price which reflected its estimated fair value less costs to sell. As of the third quarter of 2023, the Company determined the LTC business no longer met the criteria for held-for-sale accounting and, at that time, the net assets associated with the LTC business were reclassified to held and used at their respective fair values.

(16)In 2024, the gain on early extinguishment of debt relates to the Company’s repayment of approximately $2.6 billion of its outstanding senior notes in December 2024, pursuant to its tender offer for such senior notes.