CVS Health stock surges as Q1 earnings beat expectations, guidance raised

Published 01/05/2025, 11:54
© Reuters.

Investing.com -- CVS Health Corporation saw its stock jump more than 9% in premarket trading on Thursday after the healthcare giant reported first-quarter earnings that surpassed analyst estimates and raised its full-year guidance.

The company reported adjusted earnings per share of $2.25 for Q1 2025, significantly beating the analyst consensus of $1.64. Revenue came in at $94.6 billion, up 7% YoY and above expectations of $93.07 billion.

CVS Health (NYSE:CVS) raised its full-year 2025 adjusted EPS guidance to a range of $6.00 to $6.20, up from its previous forecast of $5.75 to $6.00 and above the analyst consensus of $5.91.

"Our colleagues across CVS Health delivered positive results across our Health Care Benefits, Health Services and Pharmacy & Consumer Wellness segments," said David Joyner, CVS Health President and CEO.

The company’s Health Care Benefits segment saw adjusted operating income surge to $1.99 billion from $732 million a year ago, driven by favorable prior-year development and improved Medicare performance. The medical benefit ratio improved to 87.3% from 90.4% last year.

CVS Health also announced it will exit the individual exchange business for 2026, citing a focus on other health benefit solutions.

 

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