Earnings call transcript: CVS Group H2 2026 profit rises as shares fall

CVS Group announced a rise in profits for the second half of 2026, with full-year revenue and earnings per share also increasing. However, the company's shares dropped 5.67% to $1,228.14 following the earnings call. The U.K.-based veterinary services firm reported a revenue of GBP 712.8 million, a 5.9% increase over the previous year, alongside an adjusted EBITDA of GBP 141.5 million, which rose by 5.1%.

Adjusted earnings per share hit 85.6 pence, a 6.9% improvement. Despite these gains, the decline in shares suggests investors were more focused on near-term challenges rather than the overall year's growth. The company attributed the second-half decline to extreme weather disrupting U.K. trading, continued inflation pressure, and softer demand for routine preventative care.

However, growth in first opinion, referral, and laboratory services helped offset these issues. The Australian business benefited from a stronger economic backdrop. Shares fell to $1,228.14, below the midpoint of its 52-week range, indicating a negative reaction to the results.