CVS Health reported strong second-quarter earnings and revenue, beating estimates and raising its adjusted profit outlook. The company attributes the success to its retail pharmacy business and improvements in its insurance unit. CEO David Joyner credits Aetna’s recovery efforts for the positive results. CVS also announced a $2 billion cost-cutting plan.

In Q2, CVS posted adjusted earnings of $1.81 per share, surpassing the expected $1.46 per share, and revenue of $98.92 billion, higher than the estimated $94.50 billion. Net income was $1.02 billion, or 80 cents per share, down from $1.77 billion, or $1.41 per share, in the previous year. CVS is focusing on closing locations and expanding in the Pacific Northwest.

CVS’ insurance unit faces challenges due to higher medical costs, with a medical benefit ratio of 89.9%. The unit booked $36.26 billion in revenue, up over 11% from the previous year. The pharmacy and consumer wellness division reported $33.58 billion in sales, driven by increased volume but offset by pharmacy reimbursement pressure. The health services segment generated $46.45 billion in revenue, up over 10%.

Read more at CNBC: CVS Health (CVS) earnings report Q2 2025