CVS Health Corp Beats Q3 2025 Estimates and Raises Full-Year EPS Guidance

CVS Health Corporation reported its third-quarter 2025 results, highlighting strong revenue growth and improved earnings performance despite ongoing operational challenges. The company also updated its full-year guidance, signaling confidence in its strategic direction and long-term growth plans.

Q3 2025 Results Surpass Estimates Despite One-Time Impairment Charge

In the third quarter of 2025, CVS Health Corporation (NYSE: CVS) reported total revenues of $102.9 billion, marking a 7.8% increase compared to the same period last year. This figure surpassed the market expectation of $98.29 billion, indicating robust growth across all operating segments. However, the company faced a GAAP diluted loss per share of $3.13, influenced significantly by a $5.7 billion goodwill impairment charge related to its Health Care Delivery unit. Despite this setback, CVS Health’s adjusted earnings per share (EPS) stood at $1.60, exceeding the anticipated EPS of $1.36.

The company’s operational highlights for the quarter included Aetna’s impressive Medicare Advantage Star Ratings results and the launch of a nationwide vaccination campaign at CVS Pharmacy and MinuteClinic locations. Additionally, Caremark secured nearly $6.0 billion in contract wins, demonstrating CVS Health’s commitment to providing value and transparency to its clients. The Health Care Benefits segment saw a significant turnaround, with adjusted operating income reaching $314 million compared to an adjusted operating loss of $924 million in the previous year, driven by favorable year-over-year impacts and improved performance in the Government business.

Comparatively, the Health Services segment experienced a decline in adjusted operating income, falling 7.0% from the prior year. This was primarily due to continued pharmacy client price improvements, partially offset by improved purchasing economics. Meanwhile, the Pharmacy & Consumer Wellness segment reported an 11.7% increase in total revenues, driven by pharmacy drug mix and increased prescription volume, despite facing ongoing pharmacy reimbursement pressure.

Join our Telegram group and never miss a breaking digital asset story.

CVS Raises EPS Guidance and Refines Strategic Focus for 2025

Looking ahead, CVS Health has updated its full-year 2025 guidance to reflect its third-quarter performance and strategic adjustments. The company revised its GAAP diluted earnings (loss) per share guidance to a range of $(0.34) to $(0.24), down from the previously forecasted $3.84 to $3.94. This adjustment accounts for the goodwill impairment charge and other operational changes. On a more positive note, CVS Health raised its adjusted EPS guidance range to $6.55 to $6.65, up from $6.30 to $6.40, indicating confidence in its underlying business strength and strategic initiatives.

The company’s focus remains on stabilizing operations and targeting markets where it can achieve sustainable growth. CVS Health President and CEO David Joyner emphasized the company’s progress toward becoming America’s most trusted healthcare company, highlighting improvements in both operational and financial performance. The updated cash flow from operations guidance now ranges from $7.5 billion to $8.0 billion, reflecting strong cash generation capabilities.

CVS Health’s strategic priorities include enhancing its integrated healthcare offerings and expanding its presence in key segments. The company is also committed to addressing challenges in its Health Care Delivery unit, including reducing the number of new primary care clinics planned for 2026. As CVS Health continues to navigate the evolving healthcare landscape, its updated guidance underscores a focus on delivering a connected and simplified healthcare experience, ultimately aiming to improve health outcomes and lower costs for its customers.

Disclaimer: The author does not hold or have a position in any securities discussed in the article. All stock prices were quoted at the time of writing.