CVS Health Reports Mixed Q3 Results Amid Rising Medical Costs

New CEO David Joyner faces challenges as CVS grapples with higher costs and strategic restructuring.

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.