Shares of CVS Health (CVS) popped over 8% in pre-market trading on Thursday after the company reported better-than-expected results for the second quarter. The company also raised its full-year profit forecast, citing strong performance in its retail pharmacy business and some progress in its insurance segment.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
CVS Health’s revenue grew 8.4% year-over-year to $98.92 billion in the second quarter, beating analyst estimates of $94.11 billion. Meanwhile, adjusted earnings per share came in at $1.81, well above expectations of $1.46, representing a 23.9% surprise to the upside.
CVS Lifts Full‑Year 2025 Guidance
For 2025, CVS expects adjusted earnings of $6.30 to $6.40 per share, up from its prior forecast of $6.00 to $6.20. However, the company lowered its GAAP earnings guidance without providing further details.
CEO David Joyner noted that CVS’ retail pharmacy segment is “performing really well,” highlighting the company’s use of new technology to enhance operations and boost efficiency. He also emphasized CVS’ investments in labor and its new prescription drug pricing model have benefited payers and helped the pharmacy business stand out from competitors.
As part of its broader turnaround strategy, CVS is targeting $2 billion in cost reductions over the coming years. Joyner told CNBC that the company still plans to close additional stores to meet that goal. However, he emphasized that CVS is also prioritizing strategic expansion, particularly in regions like the Pacific Northwest, where its presence remains limited.
Is CVS a Good Stock to Buy?
According to TipRanks’ consensus, CVS stock has a Strong Buy consensus rating based on 14 Buys and two Holds assigned in the last three months. At $80.60, the average CVS Health stock price target implies a 24% upside potential.
