CVS Health Raises Profit Forecast Amid Strong First Quarter

Published 5 hours agoCVS

CVS Health Raises Profit Forecast Amid Strong First Quarter

CVS Health has revised its full-year adjusted profit forecast upwards for 2025, now expecting $6.00–$6.20 per share. This increase from the earlier projection of $5.75–$6.00 per share reflects a robust start to the year, signaling recovery from the challenges faced in 2024. The forecast adjustment highlights positive market momentum and stronger financial health for the pharmacy giant, according to Reuters.

During the first quarter, CVS Health's adjusted earnings per share reached an impressive $2.25, well above analyst expectations of $1.70. The pharmacy division reported revenues of $31.91 billion, while the health services unit generated $43.46 billion, both surpassing prior estimates. Additionally, the company's medical loss ratio improved to 87.3%, down from 90.4% the previous year, indicating more efficient healthcare cost management.

Under CEO David Joyner, who assumed leadership in October, CVS Health has undertaken several strategic initiatives, including cost-cutting measures and a leadership overhaul. The company also announced plans to exit the individual exchange business and to adjust its list of preferred pharmaceutical drugs, replacing Eli Lilly’s Zepbound with Novo Nordisk's Wegovy. These moves are part of CVS's broader strategy to streamline operations and focus on more profitable ventures.

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