CVS Health Shares Surge After Beating Q4 Earnings Expectations

The company reported $97.7 billion in Q4 revenue and issued cautious 2025 earnings guidance, addressing challenges in its insurance division.

CVS Health's Q4 adjusted earnings per share (EPS) of $1.19 exceeded analysts' expectations of $0.93, driven by strong performance across its business segments.
The company reported $97.7 billion in Q4 revenue, a 4.2% increase year-over-year, with growth in pharmacy and consumer wellness sales offsetting pressures in its insurance business.
CVS's insurance unit faced a $439 million adjusted operating loss in Q4, attributed to higher medical costs, lower Medicare Advantage star ratings, and increased Medicaid utilization.
CEO David Joyner emphasized a conservative approach to 2025 guidance, projecting adjusted EPS of $5.75 to $6.00, while declining to provide full-year revenue forecasts.
Despite ongoing challenges, including rising medical costs and regulatory scrutiny of its pharmacy benefit management business, CVS shares rose over 15% following the earnings report.