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Mar 31
CVS Health Q1 2025 Earnings Report
CVS Health reported strong growth in Q1 2025, driven by higher revenue across all segments and improved performance in Medicare Advantage.
Key Takeaways
CVS Health saw solid financial and operational performance in Q1 2025, with notable gains in adjusted EPS and net income, boosted by improvements in its Health Care Benefits segment and expanded access initiatives across the enterprise.
CVS Health
CVS Health
CVS Health Revenue by Segment
CVS Health Revenue by Geographic Location
Forward Guidance
CVS revised its full-year 2025 outlook, increasing its adjusted EPS and cash flow guidance while lowering GAAP EPS expectations due to anticipated cost pressures.
Positive Outlook
- Raised adjusted EPS guidance to $6.00–$6.20 from $5.75–$6.00
- Increased cash flow from operations outlook to ~$7.0B from ~$6.5B
- Solid Medicare Advantage performance supports revenue growth
- Continued improvements in adjusted operating income across segments
- Formulary updates to improve access to GLP-1 drugs
Challenges Ahead
- Lowered GAAP EPS guidance due to litigation and wind-down costs
- Ongoing cost pressure trends expected to persist
- Litigation charge from Omnicare case impacted Q1 GAAP results
- Premium deficiency reserve recorded for individual exchange business
- Winding down Accountable Care assets incurred losses
Revenue & Expenses
Visualization of income flow from segment revenue to net income