CVS Health raises 2025 earnings forecast again amid market recovery

In the United States, CVS Health has continued to show a strong recovery under new management, significantly improving its financial outlook. On Thursday, July 31, 2025, the company announced that it expects adjusted earnings for 2025 to be between $6.30 and $6.40 per share, an increase from its previous forecast of up to $6.20 per share made in May. This positive change comes as CVS Health reported its second-quarter earnings, which surpassed Wall Street expectations, demonstrating growth and resilience in a challenging healthcare market. The company, based in Woonsocket, Rhode Island, has become one of the nation's largest drugstore chains and operates a considerable pharmacy benefit management business. It services a broad range of clients including employers, insurers, and covers approximately 27 million individuals through its Aetna insurance sector. In the second quarter, CVS reported adjusted earnings of $1.81 per share, with revenues climbing 8% to reach $98.9 billion. These figures markedly exceeded analyst predictions of $1.46 earnings per share on revenues of $94.51 billion. CVS Health's rejuvenation comes after a tumultuous period that saw former CEO Karen Lynch step down due to disappointing earnings earlier in 2024. David Joyner has since stepped in as CEO, implementing new management structures aimed at stabilizing the company’s operations and performance. Despite several health insurance providers facing difficulties with higher-than-expected claims this year, CVS has achieved revenue growth of 10% or more across all business segments, a notable accomplishment given the broader industry's struggles this quarter. Following the announcement of its increase in earning forecasts, CVS Health's stock price surged by more than 8%, adding $5.34 to reach $67.65 in premarket trading. The stock's value has risen 39% year-to-date, while the Standard & Poor's 500 index has only grown by 8% during the same timeframe. As CVS Health continues to adapt and recover from its past challenges, it reflects broader trends of resilience within the healthcare sector, where companies are strategically navigating through economic fluctuations and shifts in consumer demand.