CVS Health's Strong Q3 Performance Driven by Diverse Healthcare Solutions
Highlights
- Third quarter revenue: $103 billion (+8% YoY)
- Adjusted operating income: $3.5 billion (+36% YoY)
- Adjusted EPS: $1.60 (+47% YoY)
- Year-to-date cash flow from operations: $7.2 billion
- Health Services revenue: $49 billion (+11% YoY)
- Pharmacy & Consumer Wellness revenue: $36 billion (+12% YoY)
- Full year adjusted EPS guidance: Increased to $6.55-$6.65
- New client wins: Nearly $6 billion with retention in the high 90s
- $5.7 billion goodwill impairment in Health Care Delivery
In a remarkable display of the power and reach of its diversified healthcare portfolio, CVS Health has announced impressive results for the third quarter of 2025, underscoring the strength and resilience of its operations. With substantial growth posted across key divisions, CVS continues to build momentum and reinforce its position as a healthcare leader.
Record Revenues and Robust Earnings
CVS Health reported a record third-quarter revenue of $103 billion, representing an 8% increase compared to the same period last year. The company achieved an adjusted operating income of $3.5 billion, a 36% increase year-over-year, and an adjusted earnings per share of $1.60, marking an impressive 47% rise. This performance highlights CVS Health's effective execution of its strategic plans across its varied business segments.
Segment-Specific Growth Highlights
Revenue growth was bolstered by contributions from CVS's Health Services segment, which saw an 11% increase to $49 billion. Meanwhile, the Pharmacy & Consumer Wellness segment posted $36 billion in sales, up by nearly 12% compared to the previous year. The ability to capture market share and enhance service offerings in a competitive environment has been central to this success.
CVS's Health Care Benefits segment generated nearly $36 billion in quarterly revenue, driven largely by the robust performance of its government business. This diversification strategy is increasingly paying off, allowing the company to offset challenges in other areas.
Strategic Adjustments and Impairments
Despite the upbeat financial results, CVS recorded a significant $5.7 billion goodwill impairment in its Health Care Delivery unit. This adjustment was attributed to revised strategies reducing Oak Street clinic expansion plans, reflecting a cautious but strategic alignment with evolving market conditions.
Optimistic Full-Year Outlook
The company has subsequently raised its full-year adjusted EPS guidance range to $6.55-$6.65, buoyed by strong financial results and ongoing strategic improvements. Additionally, CVS Health's new client wins, totaling nearly $6 billion with robust retention rates, showcase its capacity to attract and maintain a loyal customer base amidst changing market dynamics.
As CVS Health capitalizes on its diverse offerings and strategic market positions, the company remains well-poised to continue delivering value across its healthcare ecosystem and to its shareholders.