Pharmaceutical and healthcare giant CVS Health (CVS) will report earnings before the market opens tomorrow. Analysts expect the company to announce quarterly earnings of $1.67 per share, reflecting a 27.5% increase year over year. Revenue is projected to hit $92.95 billion, denoting a 5.1% rise from the same quarter last year.
A Mixed History, With Recent Bright Spots
CVS has delivered a mixed post-earnings performance over its last eight quarterly reports — four gains, four losses. However, the two most recent next-day reactions were notably strong, featuring 11.3% and 14.9% gains in November February, respectively. This suggests bullish momentum could be building.
On average, the stock has moved 7.1% the day after earnings, regardless of direction. This quarter, options traders are bracing for even more volatility, with the options market pricing in a 9.4% swing.
CVS Health Stock’s Technical Set-Up Shows Resilience
CVS Health stock was last seen up 2.1% to trade at $66.42. The equity has climbed 48% in 2025, erasing much of its previous underperformance and now sitting just below year-to-date breakeven territory.
Shares also found strong technical footing. A bull gap in early February gave the stock fresh momentum, while the $60 level contained a sharp pullback earlier this month. More recently, $65 has emerged as a key near-term floor.
Bearish Options Sentiment May Be a Contrarian Catalyst for CVS Health Stock
Despite the stock’s impressive recovery, options sentiment leans bearish. CVS holds a 50-day put/call volume ratio at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) that sits higher than all other readings from the last 12 months. This suggests put buying has ramped up in recent weeks.
Echoing this, CVS Health stock’s Schaeffer’s put/call open interest ratio (SOIR) stands at 1.33, which ranks in the 98th percentile of its annual range. In other words, short-term traders are heavily skewed toward puts — a setup that, from a contrarian perspective, could fuel post-earnings upside if results beat expectations.