CVS Health Q2 Profit Up, Net Income Falls on Charges

CVS Health posted strong second-quarter 2025 results, surpassing analyst expectations with adjusted earnings per share of $1.81 and revenue of $98.92 billion. The company raised its full-year adjusted EPS outlook to $6.30–$6.40, up from $6.00–$6.20, and projected operational cash flow of at least $7.5 billion. CVS's stock surged as much as 9% in premarket trading, driven by strong performance in its retail pharmacy and improvements in the Aetna insurance unit, despite ongoing challenges from higher medical costs. Net income, however, fell 42% year-over-year to $1.02 billion, mainly due to one-time litigation charges, but this did not impact the adjusted earnings beat. The health services division saw a decline, even as the prescription pharmacy segment remained strong. This marks the third consecutive quarter of outperformance under CEO David Joyner, who has emphasized operational efficiency and new pricing models.