CVS Q2 top and bottom lines beat Street
CVS Health Corp. posted a solid quarter with better-than-expected earnings and sales amid growth across its three business units.
The company, which also raised its adjusted profit outlook, is in the middle of a turnaround plan that includes store closings as it look to cut $2 billion in costs during the next several years. At the same time, CVS is boosting its store footprint in the Pacific Northwest where it is rebranding 20 Bartell Drug locations in Washington that it acquired as part of its purchase of 64 Rite Aid drug stores in Idaho, Oregon and Washington.
Net income fell to $1.02 billion, or $0.80 per share, for the quarter ended June 30, compared with net income of $1.77 billion, or $1.41 per share, for the year-ago period, due in part to one-time litigation charges. Adjusted earnings were $1.81 per share, beating analysts’ estimates of $1.46 per share.
Total revenue rose 8.4% tp $98.92 billion, easily topping estimates of $94.50 billion.
Sales at CVS’ pharmacy and consumer wellness division rose more than 11.6% to $33.58 billion. The company said the increase was partly driven by higher volume at the pharmacy and the front end, but offset by pharmacy reimbursement pressure.
Revenue at CVS’ health care benefits unit, which incudes the Aetna insurance business, rose 11.6% to $36.26 billion. Revenue for the health services unit, which includes the company’s CVS Caremark pharmacy benefit manager business, increased 10.2% to $46.45 billion.
“Our strong performance demonstrates the continued focus we have on operational and financial improvement across our businesses, led by a significant and durable recovery at Aetna, strong retention at CVS Caremark and growth and momentum at CVS Pharmacy,” said David Joyner, president and CEO, CVS Health.
For 2025, CVS raised its adjusted EPS guidance range to $6.30 to $6.40 from $6.00 to $6.20.
As of June 30, 2025, CVS had approximately 9,000 retail pharmacy locations, more than 1,000 walk-in and primary care medical clinics, a leading pharmacy benefits manager with approximately 87 million plan members and a dedicated senior pharmacy care business serving more than 800,000 patients per year.
