CVS Health (CVS) shares tumbled 5.13% in pre-market trading on Wednesday, despite the company raising its full-year adjusted profit forecast. The stock's decline comes as investors grapple with a significant $5.73 billion writedown related to the company's healthcare businesses, including its in-pharmacy MinuteClinics.

The healthcare giant reported mixed third-quarter results, with total revenue rising 7.8% to $102.9 billion, surpassing analysts' expectations. However, the company posted a net loss of $3.13 per share for the quarter, primarily due to the substantial impairment charge. Adjusted earnings per share came in at $1.60, beating the average estimate of $1.37.

While CVS raised its full-year 2025 adjusted earnings guidance to between $6.55 and $6.65 per share, up from the previous range of $6.30 to $6.40, investors seem more focused on the challenges facing the company's Health Care Delivery segment. The impairment charge reflects a restructuring of Oak Street Health, a primary care provider, and diminished value of Signify Health, which offers home-based services. Both businesses focus on Medicare and have been pressured by higher medical services spending and changes in government reimbursement.

Adding to concerns, CVS announced plans to reduce the number of new primary care clinics it would open in 2026 and beyond, signaling potential headwinds in its growth strategy. CEO David Joyner acknowledged the changing market conditions, stating, "We are taking a cautious and prudent look in terms of where healthcare trends have been and where we expect them to continue to be elevated as we head into 2026."

Despite the negative pre-market reaction, some analysts may view the raised guidance and strong pharmacy revenues as positive indicators for the company's core business. However, the significant impairment charge and scaled-back expansion plans for primary care clinics appear to be overshadowing these developments in investors' minds, leading to the sharp decline in CVS Health's stock price.