CVS Health beats Q2 revenue and earnings, raises cash flow guidance to $11.5B amid strong Aetna turnaround.

CVS Health Corporation reported strong second-quarter results with revenue and earnings surpassing expectations. The company's improved cash flow, driven by Aetna's turnaround and better medical benefit ratios, led management to raise operating cash flow guidance to $11.5 billion. Despite anticipating higher medical costs in the second half of the year and challenges from 2027 Medicare Advantage payment changes and pharmacy drug mix shifts, CVS's solid cash flow supports debt reduction and dividend stability. However, the recent stock price rally suggests holding the stock rather than buying more.