CVS HEALTH CorpCVS
CVS HEALTH Corp Goodwill & Intangibles Disclosure
Goodwill and Other Intangibles
Goodwill
Below is a summary of the changes in the carrying amount of goodwill by segment for the years ended December 31, 2025 and 2024:
| In millions | Health Care Benefits | Health Services | Pharmacy & Consumer Wellness | Total | |||||||||||||||||||
| Balance at December 31, 2023 | $ | 46,644 | $ | 34,066 | $ | 10,562 | $ | 91,272 | |||||||||||||||
| Balance at December 31, 2024 | 46,644 | 34,066 | 10,562 | 91,272 | |||||||||||||||||||
| Impairment | — | (5,725) | — | (5,725) | |||||||||||||||||||
Divestiture | — | (69) | — | (69) | |||||||||||||||||||
| Balance at December 31, 2025 | $ | 46,644 | $ | 28,272 | $ | 10,562 | $ | 85,478 | |||||||||||||||
During 2025, the Health Care Delivery reporting unit continued to experience challenges, including the impact of persistent elevated utilization levels. In order to best respond to these challenges, the Company made a number of changes to its Health Care Delivery management team during 2025. During the third quarter of 2025, this new management team finalized certain strategic changes, including the determination that it would reduce the number of new primary care clinics it would open in 2026 and annually thereafter. The Company also determined that it would close certain existing Oak Street Health clinics in 2026. The strategy changes were presented to CVS Health Corporation’s Board of Directors in September 2025.
These changes are expected to impact management’s ability to grow the business at the rate that was originally estimated when the Company acquired the associated care delivery assets in 2023 and when the prior year annual goodwill impairment test was performed. Accordingly, the Health Care Delivery management team updated its financial projections to reflect these changes for 2026 and beyond. Based on these updated projections, management determined that there were indicators that the Health Care Delivery reporting unit’s goodwill may be impaired and, accordingly, an interim goodwill impairment test was performed during the third quarter of 2025.
The results of the impairment test showed that the fair value of the Health Care Delivery reporting unit was lower than its carrying value, resulting in a $5.7 billion goodwill impairment charge, which was recorded during the third quarter of 2025. The Company also performed an interim impairment test of the intangible assets of the Health Care Delivery reporting unit and no intangible assets were impaired as of September 30, 2025. The fair value of the Health Care Delivery reporting unit was determined using a combination of a discounted cash flow method and a market multiple method and utilized inputs that reflect the Company’s assumptions, which are categorized as Level 3 inputs within the fair value hierarchy. In addition to the lower financial projections, lower market multiples of the peer group companies contributed to the amount of the goodwill impairment charge. As of December 31, 2025, the remaining goodwill balance in the Health Care Delivery reporting unit was approximately $4.2 billion.
During the fourth quarter of 2025, 2024 and 2023, the Company performed its required annual impairment tests of goodwill. The results of these impairment tests indicated that there was no impairment of goodwill as of the annual testing dates.
At December 31, 2025 and 2024, cumulative goodwill impairments were $5.7 billion and $6.6 billion, respectively. Cumulative goodwill impairments previously recorded on the long-term care reporting unit of $6.6 billion were eliminated in connection with the deconsolidation of the Omnicare Entities during the third quarter of 2025.
During the year ended December 31, 2025, the decrease in the carrying amount of goodwill also reflects the removal of goodwill in connection with the divestiture of the Company’s MSSP operations as described in Note 2 ‘‘Acquisition and Divestiture’’.
Intangible Assets
The following table is a summary of the Company’s intangible assets as of December 31, 2025 and 2024:
| In millions, except weighted average life | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | Weighted Average Life (years) | |||||||||||||||||||
| 2025 | |||||||||||||||||||||||
| Trademarks (indefinite-lived) | $ | 10,498 | $ | — | $ | 10,498 | N/A | ||||||||||||||||
| Customer contracts/relationships and covenants not to compete | 27,000 | (15,427) | 11,573 | 14.7 | |||||||||||||||||||
| Technology | 1,250 | (1,230) | 20 | 3.0 | |||||||||||||||||||
| Provider networks | 4,203 | (1,492) | 2,711 | 20.0 | |||||||||||||||||||
| Value of Business Acquired | 590 | (255) | 335 | 20.0 | |||||||||||||||||||
| Other | 824 | (453) | 371 | 9.4 | |||||||||||||||||||
| Total | $ | 44,365 | $ | (18,857) | $ | 25,508 | 14.9 | ||||||||||||||||
| 2024 | |||||||||||||||||||||||
| Trademarks (indefinite-lived) | $ | 10,498 | $ | — | $ | 10,498 | N/A | ||||||||||||||||
| Customer contracts/relationships and covenants not to compete | 26,904 | (13,889) | 13,015 | 14.2 | |||||||||||||||||||
| Technology | 1,250 | (1,167) | 83 | 3.0 | |||||||||||||||||||
| Provider networks | 4,203 | (1,282) | 2,921 | 20.0 | |||||||||||||||||||
| Value of Business Acquired | 590 | (228) | 362 | 20.0 | |||||||||||||||||||
| Other | 826 | (382) | 444 | 9.3 | |||||||||||||||||||
Total | $ | 44,271 | $ | (16,948) | $ | 27,323 | 14.5 | ||||||||||||||||
Amortization expense for intangible assets totaled $2.0 billion, $2.0 billion and $1.9 billion for the years ended December 31, 2025, 2024 and 2023, respectively. The projected annual amortization expense for the Company’s intangible assets for the next five years is as follows:
| In millions | |||||
| 2026 | $ | 1,717 | |||
| 2027 | 1,604 | ||||
| 2028 | 1,330 | ||||
| 2029 | 1,252 | ||||
| 2030 | 1,219 | ||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 10, 2026 | Showing above |
| 2024 | Feb 12, 2025 | |
| 2023 | Feb 7, 2024 | |
| 2022 | Feb 8, 2023 | |
| 2021 | Feb 9, 2022 | |
| 2020 | Feb 16, 2021 | |
| 2019 | Feb 18, 2020 | |
| 2018 | Feb 28, 2019 | |
| 2017 | Feb 14, 2018 | |
| 2016 | Feb 9, 2017 | |
| 2015 | Feb 9, 2016 | |
About Goodwill & Intangibles Disclosures
Goodwill and intangible asset disclosures reveal the premium paid in acquisitions and how management assesses whether that premium retains its value. Since goodwill is no longer amortized under US GAAP, the annual impairment test is the only mechanism that adjusts carrying values downward — making the assumptions behind that test critically important for investors.
Key signals: a history of goodwill impairments suggests management consistently overpays for acquisitions. Watch the gap between reporting unit fair value and carrying amount — when fair value exceeds carrying amount by less than 10-20%, a small decline in business performance could trigger a write-down. For finite-lived intangibles, examine useful life assumptions across customer relationships, technology, and trade names; aggressive estimates inflate near-term earnings. Compare total intangibles-to-total-assets ratios against peers to assess acquisition dependency. Rising goodwill as a percentage of equity can signal balance sheet fragility.