CVS's stock jumps, as profit beats by a wide margin and the outlook is raised

Dow Jones
2025/07/31

MW CVS's stock jumps, as profit beats by a wide margin and the outlook is raised

Shares of CVS Health Corp. $(CVS.AU)$ shot up 8.9% in premarket trading Thursday, after the health and pharmacy services company beat profit second-quarter expectations by a wide margin and raised its full-year outlook, amid strength in its prescription pharmacy business.

Net income fell 42.3% from the same period a year ago to $1.02 billion, due in part to one-time litigation charges, while adjusted earnings per share, which excludes special items, fell to $1.81 from $1.83 but beat the average analyst estimate compiled by FactSet of $1.46.

For 2025, the company raised its adjusted EPS guidance range to $6.30 to $6.40 from $6.00 to $6.20. The FactSet consensus for 2025 adjusted EPS is $6.12.

Total revenue grew 8.4% to $98.92 billion, above the FactSet consensus of $94.51 billion.

Among CVS's business units - there is some revenue overlap between the units - pharmacy and consumer wellness revenue increased 12.5% to $33.58 billion, boosted by increased prescription and front-store volume, while health care benefits rvenue rose 11.6% to $36.26 billion.

Revenue for health services, which includes the company's CVS Caremark pharmacy benefit manager business, was up 10.2% to $46.45 billion.

-Tomi Kilgore

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July 31, 2025 06:55 ET (10:55 GMT)

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