CVS Health logo is seen in this illustration taken, February 11, 2025. REUTERS/Dado Ruvic/Illustration

Dec 9 (Reuters) - CVS Health on Tuesday forecast 2026 profit above Wall Street estimates and this year's projected earnings, signaling steady progress in the health conglomerate's turnaround plan.

Shares of CVS, which operates one of the largest U.S. pharmacy chains, rose 2.4% to $78.38 in premarket trading, after the company also raised its 2025 profit outlook for the fourth time.

The upbeat outlook caps a year in which CEO David Joyner pushed through a much-needed and sweeping overhaul, including cost-cutting measures, exits from underperforming markets and strengthening top management to revive investor confidence.

The efforts have helped restore investor confidence in the company, with CVS shares surging 70.5% so far this year.

"We are closing out 2025 with meaningful momentum across our businesses and we expect another year of strong earnings growth in 2026," said Chief Financial Officer Brian Newman on Tuesday.

The company forecast 2026 adjusted profit to be in the range of $7.00 to $7.20 per share, compared with analysts' average estimate of $7.16, according to data compiled by LSEG.

It, however, expects total revenue of at least $400 billion next year, below analysts' average estimate of $419.26 billion.

The company expects the growth to be powered by return to target margins at its Aetna insurance business as well as CVS Caremark pharmacy benefit management unit.

In May, CVS said it plans to exit the market for Obamacare health insurance plans in 2026. Health insurers have struggled with increasing medical costs in these plans in recent quarters.

The company raised its 2025 adjusted profit forecast to $6.60 to $6.70 per share from $6.55 to $6.65 previously.

"CVS' near-term momentum should set the stage for what remains a robust growth recovery story," Leerink Partners analysts said in a note.

The company will host an investor day later on Tuesday.

(Reporting by Sneha S K in Bengaluru; Editing by Shinjini Ganguli)