Sep 30, 2023

CVS Health Q3 2023 Earnings Report

Announced third quarter results, demonstrating revenue growth and strategic advancements.

Key Takeaways

CVS Health reported a 10.6% increase in total revenues, reaching $89.8 billion, driven by growth across all segments. GAAP diluted EPS was reported at $1.75, and adjusted EPS at $2.21. The company is adapting to changing consumer needs by connecting care delivery capabilities and broadening access to affordable health and wellness services.

Total revenues increased to $89.8 billion, up 10.6% compared to the prior year.

GAAP diluted EPS reached $1.75 and Adjusted EPS of $2.21.

Medical membership increased by 54 thousand members compared with June 30, 2023, reflecting increases in the Commercial and Medicare product lines.

Launched CordavisTM, a wholly owned subsidiary that will work with pharmaceutical manufacturers to commercialize and/or co-produce biosimilar products for the U.S. market.

Total Revenue
$89.8B
Previous year: $81.2B
+10.6%
EPS
$2.21
Previous year: $2.09
+5.7%
Medical membership
25.7M
Previous year: 24.3M
+5.8%
Gross Profit
$13.6B
Previous year: $13.4B
+1.4%
Cash and Equivalents
$16.3B
Previous year: $17.2B
-5.3%
Free Cash Flow
$2.17B
Previous year: $8.54B
-74.6%
Total Assets
$251B
Previous year: $231B
+8.7%

CVS Health

CVS Health

CVS Health Revenue by Segment

Forward Guidance

The Company revised its full-year 2023 GAAP diluted EPS guidance range to $6.37 to $6.61 from $6.53 to $6.75 and confirmed its full-year 2023 Adjusted EPS guidance range of $8.50 to $8.70. The Company also confirmed its full-year 2023 cash flow from operations guidance range of $12.5 billion to $13.5 billion.

Positive Outlook

  • Confirmed Adjusted EPS guidance range of $8.50 to $8.70.
  • Confirmed cash flow from operations guidance range of $12.5 billion to $13.5 billion.

Challenges Ahead

  • Revised GAAP diluted EPS guidance range to $6.37 to $6.61 from $6.53 to $6.75.

Revenue & Expenses

Visualization of income flow from segment revenue to net income