0001156039-26-000043
SEC filingRevenue was $50.2B (2.6%) Gross Profit was $44.7B (1.8%) Net Income was $1.8B (-19.2%) Eps was $8.00 (-16.8%)
Revenue increased 2.6% year-over-year to $50.2B, supported by higher average revenue per prescription at CarelonRx. This growth occurred despite lower adjusted prescription volumes and a negative shift in product mix — underscoring how pricing dynamics and therapeutic category composition are reshaping unit economics in specialty pharmacy. Gross profit rose 1.8% to $44.7B, lagging revenue growth, yet gross margin remained stable at 89.1%. That stability masks underlying pressure: cost of products sold increased on a per-prescription basis in 2026, reflecting both pricing impacts and product mix, even as volume declined.
Net income decreased 19.2% to $1.8B, and diluted EPS declined 16.8% to $8.00. This contraction was not isolated to one segment or cost line. Management attributes the decrease in operating gain to lower health plan membership and seasonal effects tied to the launch of risk-based capabilities in the specialty care solutions business — a strategic investment with near-term earnings headwinds. These were partially offset by improved performance in behavioral health, but not enough to reverse the overall trend. The EPS decline aligns with the net income result and reflects both the earnings impact and underlying membership dynamics.
Net cash provided by operating activities totaled $4.3B — a substantial increase from $1.0B in Q1 2025. This surge was driven primarily by favorable working capital impacts, not an acceleration in underlying earnings. Capital expenditures rose to $235M, reflecting continued investment in infrastructure and capabilities. While free cash flow (calculated as operating cash flow less capex) totaled $4.1B, no specific allocation of that cash — such as share repurchases or dividends — is supported by the authoritative financial packet and therefore is omitted from this narrative. The company reaffirms its view that cash on hand, future operating cash receipts, investments, and funds available under its commercial paper program, 5-Year Facility, and FHLB borrowings will be adequate to fund expected cash disbursements over the next twelve months.