CVS Health beats earnings and revenue estimates, plans to appeal legal charges

From CNBC: 2025-05-01 06:48:00

CVS Health reported first-quarter earnings and revenue that exceeded estimates, with shares up 7% before trading. The company raised adjusted earnings guidance to $6-$6.20 per share. Despite legal charges related to Omnicare, CVS plans to appeal. The insurance business showed improvement, but CVS remains cautious due to higher medical costs.

For the first quarter, CVS posted adjusted earnings of $2.25 per share and revenue of $94.59 billion, beating expectations. The insurer Aetna struggled with higher medical costs, but showed signs of improvement. CVS’s segment revenue increased, with the pharmacy and consumer wellness division generating $31.91 billion in sales, up 11% from the previous year.

CVS’ insurance business revenue for the quarter reached $34.81 billion, surpassing expectations. The segment also reported adjusted operating income of $1.99 billion, a significant increase from the previous year. Aetna will no longer offer health insurance plans on the Affordable Care Act marketplaces starting in 2026.

The health services segment of CVS generated $43.46 billion in revenue, up nearly 8% from the same quarter in 2024. This unit includes Caremark, a major pharmacy benefit manager. CVS remains focused on strategic planning and budgeting amidst market challenges, aiming for continued growth and profitability.



Read more at CNBC:: CVS Health (CVS) earnings Q1 2025