- CVS Health (CVS, Financial) reported Q1 2025 revenues of $94.6 billion, a 7.0% increase year-over-year.
- Adjusted EPS for the quarter rose significantly to $2.25 from $1.31 in Q1 2024.
- The company plans to exit the individual exchange business and has increased its cash flow guidance for full-year 2025 to $7.0 billion.
CVS Health Corporation (CVS) announced robust financial results for the first quarter of 2025, reporting a 7.0% year-over-year revenue increase to $94.6 billion. The company's GAAP diluted earnings per share (EPS) climbed to $1.41 from $0.88 in the previous year, while Adjusted EPS jumped to $2.25 from $1.31, driven by improved performance across all segments.
The Health Care Benefits segment delivered strong results, with an 8.0% revenue increase, bolstered by enhanced Medicare Advantage star ratings. The segment's adjusted operating income surged by $1.3 billion, although it recorded a $448 million premium deficiency reserve due to anticipated losses in the individual exchange business. As a strategic move, CVS has decided to exit this less profitable market by 2026.
CVS Health also revised its full-year 2025 guidance, lowering its GAAP EPS estimate to a range of $4.23 to $4.43 from the previous $4.58 to $4.83. However, the company raised its Adjusted EPS forecast to between $6.00 and $6.20, up from $5.75 to $6.00, reflecting confidence in underlying business momentum despite certain one-time charges.
In a notable collaboration, CVS Caremark has partnered with Novo Nordisk to enhance access to Wegovy, a GLP-1 weight management drug. Set to take effect on July 1, 2025, this formulary update positions CVS Pharmacy as the first retail pharmacy in the NovoCare network, thereby providing extensive access across its 9,000+ community health locations.
The company generated $4.6 billion in operating cash flow during the quarter and increased its guidance for cash flow from operations to approximately $7.0 billion for the full year, a testament to its solid operational performance and strategic initiatives.
