CVS Health Raises Outlook After Strong Q2 Results

CVS Health reported strong second-quarter 2025 results, with revenue rising 8.4% year over year to $98.9 billion and adjusted earnings per share of $1.81, both exceeding Wall Street expectations. The company raised its 2025 adjusted EPS guidance to $6.30–$6.40 on the back of robust performance in Aetna insurance and pharmacy businesses, including double-digit revenue growth across core segments. Improved cost controls in the Aetna unit, particularly around medical loss ratios, contributed to the profit beat, although net income was affected by litigation charges. CVS also reported a slight decline in Aetna medical membership, largely due to its planned exit from ACA exchanges. Despite ongoing industry cost pressures, the company remains focused on operational and financial improvement. This marks the third consecutive quarter in which CVS has surpassed earnings expectations.