CVS Health Reports Strong Q3 Results, Raises Full-Year Guidance Amid Strategic Shifts

CVS Health Corporation, a leading healthcare company, has reported robust third-quarter results for 2025, surpassing Wall Street expectations and prompting an increase in its full-year earnings forecast. The company's performance reflects significant improvements across its diverse business segments, despite facing challenges in its healthcare delivery unit.

Record Revenue and Earnings Growth

CVS Health achieved record-high revenue of $102.9 billion in Q3, representing a 7.8% increase year-over-year. This impressive growth was accompanied by an adjusted earnings per share (EPS) of $1.60, up from $1.09 in the prior year. The company's strong performance was primarily driven by improvements in its Aetna insurance unit and a successful selling season for its pharmacy benefit management business, Caremark.

Segment Performance and Strategic Adjustments

Healthcare Benefits Segment

The healthcare benefits segment, which includes Aetna, reported a 9.1% increase in revenue to nearly $36 billion. This growth was largely attributed to expansions in the government business, influenced by the Inflation Reduction Act's impact on the Medicare Part D program. Notably, Aetna's medical benefit ratio decreased to 92.8% in Q3 2025, down from 95.2% in the previous year.

Health Services Segment

The health services segment, encompassing Caremark and Oak Street Health clinics, saw an 11.6% revenue increase to $49 billion. However, the segment faced challenges, particularly in its healthcare delivery reporting unit. As a result, CVS Health has announced strategic changes, including a reduction in the number of new primary care clinics planned for 2026 and beyond.

Financial Outlook and Impairment Charge

Despite recording a substantial $5.7 billion impairment charge related to its healthcare delivery reporting unit, CVS Health has raised its full-year 2025 adjusted EPS guidance to between $6.55 and $6.65. The company also updated its cash flow from operations guidance to a range of $7.5 billion to $8 billion.

David Joyner, CVS Health's President and CEO, emphasized the company's focus on operational and financial improvement, stating, "CVS Health uniquely delivers what the people we serve want the most: a connected, simpler experience that improves health and simplifies care."