Overview
- CVS Health reported first-quarter adjusted earnings of $2.25 per share, surpassing analysts' expectations of $1.70, with revenue of $94.59 billion exceeding projections of $93.64 billion.
- The company raised its full-year adjusted earnings forecast to $6.00–$6.20 per share, up from its prior range of $5.75–$6.00 per share.
- CVS’s insurance unit showed improvement, with its medical benefit ratio decreasing to 87.3% from 90.4% a year earlier, indicating higher profitability within the segment.
- CEO David Joyner continues to implement a turnaround strategy, including cost-cutting measures, management restructuring, and strategic changes like the planned 2026 exit from Affordable Care Act exchanges.
- The company is appealing a legal verdict against its Omnicare unit while its pharmacy benefit management arm adjusts its formulary by dropping Eli Lilly’s Zepbound and retaining Novo Nordisk’s Wegovy.