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Investing.com -- CVS Health Corporation reported second-quarter earnings that surpassed analyst expectations on Friday.
Adjusted earnings per share came in at $1.81, significantly above the consensus estimate of $1.46. Revenue for the quarter reached $98.9 billion, exceeding analyst projections of $94.73 billion and representing an 8.4% increase YoY.
The healthcare giant raised its full-year adjusted EPS guidance to a range of $6.30 to $6.40, up from its previous outlook of $6.00 to $6.20, and above the analyst consensus of $6.12. The company also increased its cash flow from operations guidance to at least $7.5 billion, up from approximately $7.0 billion previously. CVS shares edged down 0.7% following the announcement.
The strong quarterly performance was driven by improved operating results in the Health Care Benefits segment, which saw a 39.4% increase in adjusted operating income, and the Pharmacy & Consumer Wellness segment, which posted a 7.6% gain. These improvements were partially offset by a 17.8% decline in the Health Services segment.
"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 (NYSE:CVS). "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."
Despite the strong results, the company revised its GAAP diluted EPS guidance downward to $3.84 to $3.94 from the previous $4.23 to $4.43, reflecting the impact of $833 million in litigation charges recorded during the quarter related to past business practices.
The company’s medical membership stood at 26.7 million as of June 30, 2025, reflecting previously announced membership declines in the individual exchange product line.