- CVS Caremark Corp.
- 29 October 2025 14:48:18
Source: Sharecast
Adjusted earnings per share came in at $1.60, ahead of expectations, while GAAP diluted loss per share was $3.13.
The company was now guiding to 2025 adjusted earnings per share of $6.55 to $6.65, up from $6.30 to $6.40, and expected GAAP diluted losses per share of $0.34 to $0.24 versus prior guidance of a profit of $3.84 to $3.94.
Cash from operations guidance was set at $7.5bn to $8.0bn; year-to-date operating cash flow was $7.2bn.
Management said the impairment reflected weaker growth prospects and strategic changes in health care delivery, including a slower pace of new primary-care clinic openings, partly offset by the absence of about $1.2bn of prior-year restructuring charges and a $483m gain from deconsolidating Omnicare following its Chapter 11 filing.
“Our leadership team has stabilized operations and is focused on businesses and markets where we can succeed,” said president and CEO David Joyner.
“Our strong enterprise performance demonstrates the continued focus we have on operational and financial improvement across our businesses.”
Operationally, insurance arm Aetna rebounded.
Health care benefits revenue rose 9.1% to nearly $36bn and adjusted operating income swung to a $314m profit from a $924m loss a year earlier, helped by favourable prior-period development and improved government business performance.
Aetna’s medical benefit ratio improved to 92.8% from 95.2%, and more than 81% of Aetna Medicare Advantage members would be in four-star-plus plans for 2026, with 63% in 4.5-star plans.
In health services, which includes the Caremark pharmacy benefit management and provider operations, revenue rose 11.6% to $49bn on drug mix and brand inflation, partly offset by client price improvements; adjusted operating income fell 7% as healthcare delivery challenges persisted.
Caremark closed “another strong selling season” with nearly $6bn of contract wins and retention in the high-90s.
CVS said the health care delivery unit was continuing to face headwinds, adding that it would reduce the number of new clinics planned for 2026 and beyond, though value-based care remained central to strategy.
Pharmacy and consumer wellness revenue increased 11.7% to $26bn on higher prescription volume and drug mix, including incremental scripts from acquired Rite Aid and Bartell files, while adjusted operating income declined 7.4% amid ongoing reimbursement pressure.
CVS also launched its annual vaccination campaign across CVS Pharmacy and MinuteClinic locations.
Despite the GAAP loss, the company framed the quarter as progress toward stability and growth, citing raised adjusted guidance, solid cash generation and improved insurance fundamentals.
At 1043 EDT (1443 GMT), shares in CVS Health Corporation were up 1.06% in New York at $83.07.
Reporting by Josh White for Sharecast.com.
