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4w ago

CVS Health Beats Q1 Expectations and Raises 2025 Earnings Guidance

The healthcare giant saw improved insurance profitability, strategic operational shifts, and a 10% premarket stock surge after posting strong quarterly results.

A general view shows a sign of CVS Health Retail Pharmacy Customer Care Center, at CVS headquarters of CVS Health Corp in Woonsocket, Rhode Island, U.S. October 30, 2023. REUTERS/Faith Ninivaggi/File Photo
FILE - The exterior view of a CVS branch is shown on Tuesday, May 16, 2023, in Pasadena, Calif. (AP Photo/Marcio Jose Sanchez)
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Overview

  • CVS Health reported Q1 2025 adjusted earnings per share of $2.25 and revenue of $94.59 billion, surpassing Wall Street estimates.
  • The company raised its full-year adjusted EPS guidance to $6.00–$6.20, up from the previous range of $5.75–$6.00.
  • Aetna's medical benefit ratio improved to 87.3%, reflecting stronger insurance segment performance and increased profitability.
  • CVS announced its exit from Affordable Care Act individual marketplaces starting in 2026, while also updating its pharmacy benefit management formulary by excluding Eli Lilly's Zepbound and retaining Novo Nordisk's Wegovy.
  • Shares of CVS Health surged over 10% in premarket trading, marking a significant recovery after last year’s challenges.