CVS Health (CVS) shares surged 5.14% in pre-market trading on Thursday following the release of its impressive second-quarter results and an upward revision of its full-year guidance. The healthcare giant significantly outperformed Wall Street expectations, demonstrating strong performance across its various business segments.
The company reported adjusted earnings per share of $1.81, handily beating the analyst estimate of $1.46. Revenue for the quarter reached $98.92 billion, surpassing the expected $94.50 billion. CVS Health's medical benefit ratio, a key metric in the health insurance industry, came in at 89.9%, lower than the anticipated 91.16%, indicating better cost management in its Aetna insurance business.
Boosted by these strong results, CVS Health raised its full-year 2025 earnings outlook to $6.30-$6.40 per share, up from the previous guidance of $6.00-$6.20 and above the analyst consensus of $6.12. The company attributed this optimistic forecast to improved performance across its pharmacy services, retail/long-term care, and healthcare benefits segments. Despite recording $833 million in litigation charges for the quarter, CVS Health's overall financial health appears robust, instilling confidence in investors and driving the stock's pre-market rally.