CVS Health achieves $1 billion profit as costs stabilize

In the United States, CVS Health announced its financial results for the second quarter on July 31, 2025. The company reported a net income of $1 billion, showing a significant stabilization in costs associated with its Aetna health insurance unit. This improvement reflects a crucial step in addressing ongoing financial challenges that have impacted the company in previous quarters. Despite the positive financial progress, CVS's medical benefit ratio remains high, registering at 89.9%, only a slight increase from 89.6% the previous year. Over the first six months of the year, this ratio averaged 88.6%, down from 90% during the same period in 2024, indicating a potential improvement in cost management strategies within the company’s health insurance operations. However, CVS's net income experienced a decline from $1.77 billion, or $1.41 per share in the previous year's second quarter, predominantly due to litigation charges related to its Omnicare pharmacy unit. Adjusted earnings per share decreased slightly to $1.81 from $1.83, suggesting that while operating performance improved in certain sectors, external pressures are still at play. The pharmacy and wellness segment reported an increase in revenues, driven by sustained growth in prescription volumes, which grew by 12.5% to $33.58 billion. This growth, coupled with an 8.4% increase in total company revenues to $98.9 billion, illustrates the strong operational performance across various CVS segments. The company continues to navigate a dynamic marketplace with over 26 million members in its Aetna health insurance plans, despite recent membership declines. CVS is poised to adapt strategically as it exits the individual business under the Affordable Care Act for the 2026 benefit year, marking a definitive shift in its insurance strategy.