Overview

• CVS Health's Q3 revenue grew by 6.3% year-over-year to $95.4 billion, surpassing expectations, but earnings fell short at $1.09 per share against the anticipated $1.51.
• Medical costs have significantly impacted CVS's profitability, with the medical benefits ratio rising to 95.2%, up from 85.7% a year ago.
• CVS has not provided Q4 guidance due to ongoing financial pressures but anticipates some relief from the release of premium deficiency reserves.
• Strategic changes include appointing Steve Nelson as the new president of Aetna and restructuring efforts to cut costs, including store closures and job reductions.
• CVS shares have declined nearly 27% this year, reflecting investor concerns over sustained high medical costs and the company's ability to stabilize its business.