CVS Health Reports Q4 2025 Results Exceeding Expectations
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 5 days ago
0mins
Should l Buy CVS?
Source: Benzinga
- Strong Sales Performance: CVS Health reported fourth-quarter fiscal 2025 sales of $105.69 billion, surpassing the consensus estimate of $103.59 billion, with an 8.2% year-over-year increase, indicating robust performance across all business segments.
- Decline in Adjusted Earnings: Although adjusted earnings per share reached $1.09, exceeding analyst expectations of $0.99, it decreased from $1.19 in the prior year, primarily due to a decline in adjusted operating income in the Health Care Benefits segment, reflecting the seasonal impact of the Inflation Reduction Act on the Medicare Part D program.
- Segment Performance Insights: The Health Care Benefits segment saw a 10.1% revenue increase to $36.29 billion, driven by growth in government business, while the Health Services segment's sales rose 9% to $51.24 billion, influenced by pharmacy drug mix and brand inflation, despite ongoing pricing pressures from pharmacy clients.
- Revised Future Guidance: CVS updated its fiscal 2026 revenue guidance to at least $400 billion, below the consensus of $409.77 billion, with adjusted operating income projected between $15.07 billion and $15.41 billion, reflecting a cautious outlook on future financial performance.
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Analyst Views on CVS
Wall Street analysts forecast CVS stock price to rise
17 Analyst Rating
16 Buy
1 Hold
0 Sell
Strong Buy
Current: 77.930
Low
91.00
Averages
96.71
High
105.00
Current: 77.930
Low
91.00
Averages
96.71
High
105.00
About CVS
CVS Health Corporation is a health solutions company. The Company's segments include Health Care Benefits, Health Services, Pharmacy & Consumer Wellness and Corporate/Other. Health Care Benefits segment offers a broad range of traditional, voluntary and consumer-directed health insurance products and related services, including medical, pharmacy, dental and behavioral health plans, PDPs and Medicaid health care management services. Health Services segment provides a full range of pharmacy benefit management (PBM) solutions through its CVS Caremark operations and delivers health care services in its medical clinics, virtually, and in the home. Pharmacy & Consumer Wellness segment dispenses prescriptions in its CVS Pharmacy retail locations and through its infusion operations, provides ancillary pharmacy services including pharmacy patient care programs, diagnostic testing and vaccination administration, and sells a wide assortment of health and wellness products and general merchandise.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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