CVS Health reports $1.78 billion net income in the first quarter
- The company achieved total revenues of $94.6 billion for the first quarter of 2025, a 7% increase over the previous year.
- CVS Health's adjusted earnings per share reached $2.25, reflecting improved performance in the Health Care Benefits segment.
- Despite these positive financial results, CVS Health maintains a cautious outlook for the remainder of the year amid rising medical costs.
In the United States, CVS Health Corporation announced their financial results for the first quarter of 2025, revealing a 7% increase in total revenues, reaching $94.6 billion compared to $88.4 billion the previous year. The company reported a significant rise in adjusted earnings per share, reaching $2.25, a notable increase from $1.31 in the prior year, attributed mainly to improved performance within the Health Care Benefits segment. This segment experienced an enhanced operating income of $1.99 billion, supported by the increase in Medicare product lines and better Medicare Advantage ratings. The positive financial performance was still tempered by a $387 million litigation charge against Omnicare and a loss related to the sale of Accountable Care assets. Further, CVS projected an adjustment to their full-year earnings guidance, now expecting adjusted earnings per share to be between $6 and $6.20, up from previous expectations of $5.75 to $6 per share. The corporation also noted cautious outlooks for the remaining year, considering the impact of sustained elevated medical costs and macroeconomic challenges influencing their operations and overall profitability. Despite optimism in revenue growth across all business segments, CVS remains attentive to potential pressures that may arise within the retail pharmacy segment, exacerbated by lower consumer spending and reimbursements for prescription medications.