CVS Health raised its 2025 forecast based on strength in its pharmacy business and improvements in its insurance unit during the second quarter.
The healthcare giant now projects 2025 adjusted earnings per share of $6.30 to $6.40, up from a prior forecast of $6.00 to $6.20, it said in a financial statement Thursday. The company also raised its cash flow from operations guidance to at least $7.5 billion from approximately $7 billion.
CVS Health’s second quarter total revenues increased to $98.9 billion, up 8.4% compared to the prior year. The company reported net income of $1 billion in Q2, or 80 cents a share, down from $1.77 billion, or $1.41 a share, the same period a year ago. CVS’ net income in the quarter was impacted by litigation charges that include penalties against the company’s Omnicare business.
The company’s healthcare benefits segment reported revenues of $36 billion, up nearly 12% year-over-year, “primarily driven by increases in the government business, largely due to the impact of the Inflation Reduction Act on the Medicare Part D program,” the company said in a press release.
Adjusted operating income increased 39.4% primarily driven by the “favorable year-over-year impact of changes to the company’s individual exchange business risk adjustment estimates, improved underlying performance in the government business and higher favorable prior period development,” the company said.
The company’s medical benefit ratio in its Aetna unit increased to 89.9% in Q2 from 89.6% in the prior year. For the first six months of 2025, the company’s MBR was 88.6%, down from 90% a year ago.
Earlier this year, CVS announced Aetna would exit the individual business under the Affordable Care Act’s exchanges in 2026 in a move to improve business performance.
CVS Health has 26.7 million members in its Aetna health insurance plans. In Q2, medical membership declined by 358,000 members, “reflecting the previously announced membership declines in the individual exchange product line,” the company said.
CVS Health also has committed $20 billion over the next decade to simplify the U.S. health system for the American consumer. Specifically, the company is committed to advancing interoperability between members, patients/caregivers, health care providers and appropriate community resource entities to foster collaboration, improve member outcomes and increase satisfaction, the company said.
“What people want most — a connected, simpler health care experience — is what CVS Health uniquely provides. For the 185 million people we serve, we deliver better access, greater affordability and aligned advocacy. Our strong performance demonstrates the continued focus we have on operational and financial improvement across our businesses, led by a significant and durable recovery at Aetna, strong retention at CVS Caremark and growth and momentum at CVS Pharmacy,” said David Joyner, CVS Health president and CEO, in a statement.
CVS Health’s health services segment, which includes its pharmacy benefit management solutions, reported total revenues increased 10.2% to $46 billion. Revenue for the pharmacy and consumer wellness segment grew 12.5% to reach $33.5 billion.
CVS Pharmacy plans to acquire the prescription files of certain Rite Aid pharmacies across 15 states in areas that CVS serves, as well as acquire and operate certain Rite Aid stores in Idaho, Oregon and Washington.
“We are encouraged by a second consecutive quarter of solid 2025 results, while we continue to navigate a dynamic environment,” said Brian Newman, Chief Financial Officer of CVS Health, in a statement. “As we execute against our strategic priorities, we remain focused on delivering on our financial commitments and advancing initiatives that create long-term value for our stakeholders.”
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