Revenue Performance - Total revenues increased by $7.7 billion, or 8.4%, in the three months ended June 30, 2025, compared to the prior year, driven by revenue growth across all operating segments [178]. - Total revenues increased by $13.8 billion, or 7.7%, in the six months ended June 30, 2025, driven by revenue growth across all operating segments [184]. - Total revenues for the Health Care Benefits segment reached $36,258 million for the three months ended June 30, 2025, compared to $32,475 million for the same period in 2024 [192]. - The Company recorded total revenues of $193,503 million for the six months ended June 30, 2025, compared to $179,671 million for the same period in 2024 [192]. - Total revenues increased by $3.8 billion, or 11.6%, in the three months ended June 30, 2025, primarily driven by increases in the Government business due to the Inflation Reduction Act's impact on the Medicare Part D program [198]. - Premium revenues for the Health Care Benefits segment reached $34.2 billion in Q2 2025, an increase of 11.5% compared to $30.7 billion in Q2 2024 [197]. - Total revenues increased by $6.4 billion, or 9.8%, in the six months ended June 30, 2025, primarily driven by the Government business [203]. - Total revenues for the three months ended June 30, 2025, increased by $4.3 billion, or 10.2%, compared to the prior year, primarily driven by pharmacy drug mix and brand inflation [217]. - Total revenues increased by $3.7 billion, or 12.5%, in the three months ended June 30, 2025, compared to the prior year, primarily driven by pharmacy drug mix and increased prescription and front store volume [230]. - Total revenues increased by $6.9 billion, or 11.8%, in the six months ended June 30, 2025, primarily driven by pharmacy drug mix and increased prescription volume [235]. Operating Income and Expenses - Operating expenses rose by $874 million, or 8.5%, in the three months ended June 30, 2025, primarily due to $833 million in litigation charges related to past business practices [178]. - Operating expenses increased by $1.6 billion, or 7.8%, in the six months ended June 30, 2025, primarily due to $1.2 billion in litigation charges and $288 million in pre-tax losses on Accountable Care assets [184]. - Operating income decreased by $664 million, or 21.8%, in the three months ended June 30, 2025, primarily due to declines in the Health Services and Pharmacy & Consumer Wellness segments [183]. - Adjusted operating income for the consolidated totals was $3,808 million for the three months ended June 30, 2025, up from $3,744 million in the same period of 2024 [194]. - Adjusted operating income increased by $1.6 billion, or 97.7%, in the six months ended June 30, 2025, driven by improved performance in the Government business [207]. - Adjusted operating income decreased by $100 million, or 3.1%, in the six months ended June 30, 2025, primarily driven by continued pharmacy client price improvements [224]. - Adjusted operating income decreased by $340 million, or 17.8%, in the three months ended June 30, 2025, primarily due to continued pharmacy client price improvements [226]. Net Income and Tax Rate - Net income attributable to CVS Health was $1,021 million for the three months ended June 30, 2025, a decrease of $749 million, or 42.3%, compared to the prior year [177]. - The effective income tax rate was 38.5% for the three months ended June 30, 2025, compared to 24.3% for the same period in 2024, primarily due to non-deductible litigation charges [180]. Membership and Utilization - As of June 30, 2025, medical membership decreased by 358,000 members compared to March 31, 2025, totaling 26.7 million members [213]. - The Company's medical membership in Medicare and individual exchange products is set to decline, with plans to exit certain states by January 2026 [187]. - Utilization levels remain elevated, which is expected to pressure the Health Care Benefits segment and health care delivery assets for the remainder of 2025 [187]. - The Medicaid business is facing medical cost pressures due to higher acuity following member redeterminations, with uncertainty on when these pressures will be offset by state rate updates [187]. Cash Flow and Financing - Net cash provided by operating activities decreased by $1.5 billion to $6.5 billion for the six months ended June 30, 2025, a decline of 19.3% compared to the prior year [242]. - Net cash used in investing activities decreased by $1.9 billion to $1.8 billion for the six months ended June 30, 2025, a reduction of 52.0% compared to the prior year [242]. - Net cash used in financing activities was $1.5 billion for the six months ended June 30, 2025, compared to net cash provided of $22 million in the prior year, marking a significant change of 7036.4% [246]. - The Company had $3.0 billion of commercial paper outstanding at a weighted average interest rate of 5.02% as of June 30, 2025 [244]. - The maximum borrowing capacity from the Federal Home Loan Bank of Boston was approximately $1.2 billion as of June 30, 2025, with no outstanding advances [245]. - The Company did not repurchase any shares during the six months ended June 30, 2025, while it repurchased 39.7 million shares for approximately $3.0 billion in the prior year [250]. - The Company has authorized share repurchase programs totaling $20 billion, with $10 billion remaining under the 2022 program as of June 30, 2025 [249]. - The Company was in compliance with all its debt covenants as of June 30, 2025 [247]. Segment Performance - The Health Services segment includes CVS Caremark operations and provides a full range of pharmacy benefit management solutions [172]. - The Pharmacy & Consumer Wellness segment is anticipated to benefit from increased volume due to disruptions in the retail pharmacy market, including acquisitions from Rite Aid [187]. - Operating expenses in the Health Services segment increased by $321 million, or 37.8%, in the three months ended June 30, 2025, mainly due to a $291 million litigation charge [219]. - Operating expenses in the Health Care Benefits segment remained consistent in the six months ended June 30, 2025, compared to the prior year [206]. - Pharmacy claims processed remained relatively consistent on a 30-day equivalent basis in the six months ended June 30, 2025, compared to the prior year [225]. - Pharmacy same store sales increased by 18.1% in the three months ended June 30, 2025, primarily due to pharmacy drug mix and a 6.4% increase in pharmacy same store prescription volume [230]. - Pharmacy same store sales increased by 17.9% in the six months ended June 30, 2025, driven by pharmacy drug mix and a 6.5% increase in pharmacy same store prescription volume [235]. - Front store same store sales increased by 1.5% in the six months ended June 30, 2025, compared to the prior year [235]. Future Outlook - The Company expects to achieve over $500 million in cost savings in 2025 from an enterprise-wide restructuring plan finalized in Q3 2024 [187]. - Future financial performance will be influenced by competitive demand, legislative and regulatory considerations, and inflation [187]. - Regulatory changes and consumer sentiment shifts regarding immunizations may negatively impact national demand and financial results [187]. - The Company intends to appeal the verdict related to legacy litigation charges amounting to $387 million recorded in Q1 2025 [196].

CVS健康(CVS.N)预期本财年EPS6.30-6.40美元，之前预期6-6.20美元，市场预期6.13美元。 ...

Core Viewpoint - CVS Health reported stronger-than-expected second-quarter earnings and revenue, leading to an increase in its adjusted profit outlook, driven by the retail pharmacy business and improvements in its insurance unit [1][2]. Financial Performance - The company expects fiscal 2025 adjusted earnings to be between $6.30 and $6.40 per share, an increase from the previous guidance of $6 to $6.20 per share [2]. - CVS reported net income of $1.02 billion, or 80 cents per share, for the first quarter, down from $1.77 billion, or $1.41 per share, in the same period last year [5]. - Adjusted earnings for the quarter were $1.81 per share, exceeding the expected $1.46 per share [8]. - Revenue for the first quarter was $98.92 billion, an 8.4% increase from the previous year, surpassing the expected $94.50 billion [6][8]. Business Segments - The retail pharmacy business is performing well, attributed to new technology and investments in labor, which have improved operations and efficiency [4]. - The insurance unit, Aetna, is undergoing a multi-year recovery effort to address higher medical costs, contributing to the positive outlook [3]. - However, the strength in the retail pharmacy and insurance segments was partially offset by a decline in the health services segment [4]. Strategic Initiatives - CVS is pursuing a broader turnaround plan that includes $2 billion in cost cuts over the next several years, with plans to close additional locations while expanding in underrepresented areas like the Pacific Northwest [7].

Exhibit 99.1 CVS HEALTH CORPORATION REPORTS SECOND QUARTER 2025 RESULTS AND UPDATES FULL-YEAR 2025 GUIDANCE Financial Highlights Operational Highlights 2025 Full-Year Guidance CEO Commentary "What people want most — a connected, simpler health care experience — is what CVS Health uniquely provides. For the 185 million people we serve, we deliver better access, greater affordability and aligned advocacy. Our strong performance demonstrates the continued focus we have on operational and financial improvement ...

Financial Highlights - Total revenues for the second quarter of 2025 reached $98.9 billion, an increase of 8.4% compared to the prior year [4][7] - Operating income decreased by 21.8% to $2.4 billion, primarily due to $833 million in litigation charges [8] - Adjusted operating income increased by 1.7% to $3.8 billion, driven by growth in the Health Care Benefits and Pharmacy & Consumer Wellness segments [8] - Diluted earnings per share (EPS) were $0.80, down from $1.41 in the prior year, while adjusted EPS was $1.81, relatively stable compared to the previous year [4][7] Operational Highlights - The Health Care Benefits segment reported total revenues of $36.3 billion, up from $32.5 billion, with adjusted operating income increasing significantly [10] - The Health Services segment's total revenues rose to $46.5 billion, but adjusted operating income decreased due to litigation charges [12] - The Pharmacy & Consumer Wellness segment saw total revenues increase to $33.6 billion, with adjusted operating income rising significantly [16] 2025 Full-Year Guidance - The company revised its GAAP diluted EPS guidance range to $3.84 to $3.94, down from $4.23 to $4.43 [7] - Adjusted EPS guidance was raised to a range of $6.30 to $6.40, up from $6.00 to $6.20 [7] - Cash flow from operations guidance was increased to at least $7.5 billion, up from approximately $7.0 billion [7] CEO Commentary - The CEO emphasized the company's commitment to providing a connected and simpler health care experience, highlighting strong performance across various segments [1][2] - The focus remains on operational and financial improvement, particularly in the Aetna and CVS Caremark segments [1][5] Additional Insights - The company announced a commitment of $20 billion over the next decade to simplify the U.S. health system [13] - CVS Pharmacy agreed to acquire certain prescription files and store locations from Rite Aid, enhancing its market position [13] - The company is actively working on initiatives to improve the experience for both doctors and patients [13]

Earnings Report - CVS Health is expected to report Q2 earnings of $1.46 per share, a decrease from $1.83 per share in the same period last year [1] - Projected quarterly revenue is $94.59 billion, up from $91.23 billion a year earlier [1] Recent Developments - CVS Health opened a new Workforce Innovation and Talent Center (WITC) in Columbus on July 23 [2] - CVS Health shares increased by 3.8%, closing at $62.30 on Wednesday [2] Analyst Ratings - UBS analyst Kevin Caliendo maintained a Neutral rating and reduced the price target from $71 to $67 [4] - Jefferies analyst Brian Tanquilut maintained a Buy rating and raised the price target from $74 to $80 [4] - Mizuho analyst Ann Hynes maintained an Outperform rating and increased the price target from $70 to $76 [4] - Leerink Partners analyst Michael Cherny upgraded the stock from Market Perform to Outperform and raised the price target from $55 to $75 [4]

The Medical group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Is CVS Health (CVS) one of those stocks right now? A quick glance at the company's year-to-date performance in comparison to the rest of the Medical sector should help us answer this question. CVS Health is one of 983 companies in the Medical group. The Medical group currently sits at #7 within the Zacks Sector Rank. The Zacks Sector Rank considers 16 different groups, measu ...

Core Insights - CVS Health's Health Care Delivery business has shown strong revenue growth, with a 27% increase in Q1 2025, driven by strategic acquisitions and a focus on value-based care [1][8] Group 1: Financial Performance - The Health Care Delivery segment's revenue growth of 27% in Q1 2025 excludes the impact of exiting certain programs and selling parts of the business [1] - Integration costs related to the acquisitions of Signify Health and Oak Street Health amounted to $45 million in Q1 2025 [2] - CVS Health's Signify unit completed over 3 million in-home health evaluations in 2024, while Oak Street reported a 37% increase in at-risk members [3][8] Group 2: Market Dynamics - The financial performance of the Health Care Delivery business is closely linked to Medicare Advantage medical cost trends, with early signs of pressure observed at Oak Street Health [4] - Humana's CenterWell segment reported a 37.5% revenue growth in Q1 2025, driven by primary care business expansion [5] - Agilon Health is transforming senior healthcare with its PalliUM program, which has seen increased patient participation [6] Group 3: Valuation and Estimates - CVS Health shares have increased by 6.2% over the past six months, contrasting with an 11.6% decline in the industry [7] - The stock is trading at a forward price-to-earnings ratio of 9.06, below the industry average of 14.37, and carries a Value Score of A [9] - Consensus estimates for CVS Health's 2025 earnings have shown an upward trend, with current estimates for Q1 2025 at $1.47 and for the full year at $6.12 [10][11]

Core Insights - CVS Health is set to announce its earnings on July 31, 2025, with historical stock behavior around earnings releases being a key focus for event-driven traders [2] - The consensus estimate for CVS's upcoming earnings is $1.46 per share on revenue of $94.59 billion, indicating a decline in profitability compared to the previous year [4][5] - CVS Health currently has a market capitalization of $76 billion and generated $379 billion in revenue over the last twelve months, with operating profits of $11 billion and net income of $5.3 billion [5] Historical Performance - Over the past five years, CVS stock has shown a tendency toward positive one-day returns post-earnings, with 55% of instances resulting in a positive return and a median gain of 4.4% [3][10] - There have been 20 earnings data points recorded in the last five years, with 11 positive and 9 negative one-day returns observed [6] - The percentage of positive returns increases to 58% when considering data from the last three years [10] Trading Strategies - Traders typically employ pre-earnings positioning, assessing historical probabilities before the earnings report, and post-earnings positioning, observing stock movements after the earnings release [7] - Understanding the correlation between short-term and medium-term returns post-earnings can inform trading strategies, particularly if 1D and 5D returns show high correlation [8][9]

Core Insights - Aetna, a CVS Health company, has launched Aetna Care Paths and AI-driven programs to enhance the healthcare experience for members and providers [1][5] - Aetna Care Paths is a digital tool that provides personalized care recommendations and simplifies the member experience through the Aetna Health app [2][4] Technology Investment - CVS Health is investing $20 billion in digital technology to simplify healthcare navigation, which is a key part of Aetna's strategy [5] - Nearly 50% of active Aetna members use the app monthly to manage their health and understand benefits [5] Aetna Care Paths Features - Aetna Care Paths offers personalized views of benefit information and a dedicated care team for members with specific health conditions [3][4] - AI-driven clinical care summaries can save nurses up to 90 minutes per day, allowing for more quality time with members [6][7] App Enhancements - The Aetna Health app includes features such as vaccine scheduling, a claims cost breakdown chart, AI-powered chat for immediate assistance, and personalized provider recommendations [9][11] - The app also offers advanced accessibility options, including a low-light dark mode interface [9] Company Overview - As of March 31, 2025, CVS Health operates over 9,000 retail pharmacy locations and serves approximately 88 million pharmacy benefits plan members [10] - The company provides health insurance products to over 37 million people, focusing on personalized, technology-driven services to improve health outcomes and reduce costs [10]