CVS Health has reported its first-quarter earnings and revenue, beating estimates and hiking its guidance. The company’s troubled insurance business showed some improvement during the period, with its medical benefit ratio decreasing to 87.3% from 90.4% a year earlier.
The company now expects full-year adjusted earnings of $6 to $6.20 per share, up from a previous guidance of $5.75 to $6 per share. However, CVS said it is “maintaining a cautious view for the remainder of the year” in light of continued higher medical costs and “the potential for macro headwinds.”
CVS Health’s CEO David Joyner attributed the company’s performance to its focus on executing and operating efficiently. He noted that the investment and talent changes within the insurance unit have helped establish stronger underlying performance.
Despite the positive results, CVS did not provide a revenue forecast for the year. The company also revised its GAAP diluted EPS guidance to be lower, due to charges related to a legal battle involving its pharmacy services provider subsidiary, Omnicare.
The company’s pharmacy and consumer wellness division booked $31.91 billion in sales for the first quarter, up more than 11% from the same period last year. However, this was far under analyst expectations of $35.27 billion.
CVS has undergone a management reshuffle as part of its broader turnaround plan, which includes $2 billion in cost cuts over the next several years. The company’s health services segment generated $43.46 billion in revenue for the quarter, up nearly 8% compared to the same period last year.
Source: https://www.cnbc.com/2025/05/01/cvs-health-cvs-earnings-q1-2025.html