We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
CVS Stock Up on Q2 Earnings & Revenue Beat, '25 EPS View Raised
Read MoreHide Full Article
Key Takeaways
CVS posted Q2 adjusted EPS of $1.81, beating estimates despite a 1.1% year-over-year decline.
CVS' revenues rose 8.4% to $98.91B, driven by strong gains across all operating segments.
CVS raised its 2025 EPS outlook to $6.30-$6.40 amid margin expansion and broad segment strength.
CVS Health Corporation (CVS - Free Report) posted second-quarter 2025 adjusted earnings per share (EPS) of $1.81, down 1.1% year over year. The metric topped the Zacks Consensus Estimate by 23.1%. The adjusted EPS figure considers certain asset amortization costs, loss on assets held for sale and other adjustments.
On a reported basis, the company’s GAAP earnings were 80 cents per share compared with $1.41 in the prior-year period.
CVS Q2 Revenues
Revenues rose 8.4% year over year to $98.91 billion. The top line surpassed the Zacks Consensus Estimate by 5.5%. This year-over-year upside was driven by revenue growth across all segments.
Following the announcement, CVS shares rose nearly 7.8% in the pre-market trading session today.
Detailed Analysis of CVS’ Q2 Earnings Release
Health Services revenues increased 10.2% year over year to $46.45 billion, mainly driven by pharmacy drug mix and brand inflation, partially offset by continued pharmacy client price improvements.
Total pharmacy claims processed remained relatively consistent on a 30-day equivalent basis compared with the prior-year level.
Revenues in the Pharmacy & Consumer Wellness segment rose 12.5% year over year to $33.58 billion. The upside was primarily driven by the pharmacy drug mix and increased prescription and front store volume.
Within the Health Care Benefits segment, the company registered revenues worth $36.26 billion, up 11.6% year over year. This upside was driven by increases in the Government business, largely due to the impact of the Inflation Reduction Act on the Medicare Part D program.
CVS’ Margin Performance
The total cost of sold products rose 8% to $54.00 billion in the second quarter. The gross profit rose 8.9% to $44.91 billion. The gross margin expanded 20 basis points (bps) to 45.4%.
The adjusted operating margin in the quarter under review expanded 20 bps to 34.1% despite an 8.4% rise in total operating expenses ($11.21 billion).
CVS Liquidity Position
CVS Health exited the second quarter of 2025 with cash and cash equivalents of $11.79 billion compared with $10.08 billion at the end of the first quarter. The long-term debt was $57.29 billion compared with $59.04 billion in the previous quarter.
CVS Health Corporation Price, Consensus and EPS Surprise
The cumulative net cash provided by operating activities at the end of the second quarter of 2025 was $6.45 billion compared with $7.99 billion in the year-ago period.
CVS’ 2025 Guidance
CVS Health raised its 2025 adjusted EPS guidance to $6.30-$6.40 from $6.00-$6.20. The Zacks Consensus Estimate for the metric is pegged at $6.12.
Our Take on CVS Stock
CVS Health exited the second quarter of 2025 on a solid note, with earnings and revenues beating their respective estimates. The bottom line decreased on a year-over-year basis but benefited from an increase in the Health Care Benefits and Pharmacy & Consumer Wellness segments’ operating results. The expansion of both margins in the quarter is highly encouraging. Though the company raised its EPS outlook for the full year to reflect strong performance across each of its businesses, it maintains a cautious view on elevated cost trends and possible macro headwinds ahead.
CVS’ Zacks Rank and Other Key Picks
CVS Health currently carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks from the broader medical space are Boston Scientific (BSX - Free Report) , Cardinal Health (CAH - Free Report) and Cencora(COR - Free Report) .
Revenues of $5.06 billion topped the Zacks Consensus Estimate by 2.3%. BSX has a long-term earnings growth rate of 14% compared with the industry’s 14.2%.
Cardinal Health, carrying a Zacks Rank #2 at present, posted third-quarter fiscal 2025 adjusted EPS of $2.35, which exceeded the Zacks Consensus Estimate by 9.3%. Revenues of $54.88 billion missed the Zacks Consensus Estimate by 0.3%.
CAH has an estimated long-term earnings growth rate of 10.9% compared with the industry’s 9.9%.
Cencora currently carries a Zacks Rank #2. The Zacks Consensus Estimate for third-quarter fiscal 2025 adjusted EPS is currently pegged at $3.78 and the same for revenues is pinned at $80.33 billion.
Cencora has an estimated long-term growth rate of 12.8%. COR’s earnings yield of 5.4% compares favorably with the industry’s 4.1%.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
CVS Stock Up on Q2 Earnings & Revenue Beat, '25 EPS View Raised
Key Takeaways
CVS Health Corporation (CVS - Free Report) posted second-quarter 2025 adjusted earnings per share (EPS) of $1.81, down 1.1% year over year. The metric topped the Zacks Consensus Estimate by 23.1%. The adjusted EPS figure considers certain asset amortization costs, loss on assets held for sale and other adjustments.
On a reported basis, the company’s GAAP earnings were 80 cents per share compared with $1.41 in the prior-year period.
CVS Q2 Revenues
Revenues rose 8.4% year over year to $98.91 billion. The top line surpassed the Zacks Consensus Estimate by 5.5%. This year-over-year upside was driven by revenue growth across all segments.
Following the announcement, CVS shares rose nearly 7.8% in the pre-market trading session today.
Detailed Analysis of CVS’ Q2 Earnings Release
Health Services revenues increased 10.2% year over year to $46.45 billion, mainly driven by pharmacy drug mix and brand inflation, partially offset by continued pharmacy client price improvements.
Total pharmacy claims processed remained relatively consistent on a 30-day equivalent basis compared with the prior-year level.
Revenues in the Pharmacy & Consumer Wellness segment rose 12.5% year over year to $33.58 billion. The upside was primarily driven by the pharmacy drug mix and increased prescription and front store volume.
Within the Health Care Benefits segment, the company registered revenues worth $36.26 billion, up 11.6% year over year. This upside was driven by increases in the Government business, largely due to the impact of the Inflation Reduction Act on the Medicare Part D program.
CVS’ Margin Performance
The total cost of sold products rose 8% to $54.00 billion in the second quarter. The gross profit rose 8.9% to $44.91 billion. The gross margin expanded 20 basis points (bps) to 45.4%.
The adjusted operating margin in the quarter under review expanded 20 bps to 34.1% despite an 8.4% rise in total operating expenses ($11.21 billion).
CVS Liquidity Position
CVS Health exited the second quarter of 2025 with cash and cash equivalents of $11.79 billion compared with $10.08 billion at the end of the first quarter. The long-term debt was $57.29 billion compared with $59.04 billion in the previous quarter.
CVS Health Corporation Price, Consensus and EPS Surprise
CVS Health Corporation price-consensus-eps-surprise-chart | CVS Health Corporation Quote
The cumulative net cash provided by operating activities at the end of the second quarter of 2025 was $6.45 billion compared with $7.99 billion in the year-ago period.
CVS’ 2025 Guidance
CVS Health raised its 2025 adjusted EPS guidance to $6.30-$6.40 from $6.00-$6.20. The Zacks Consensus Estimate for the metric is pegged at $6.12.
Our Take on CVS Stock
CVS Health exited the second quarter of 2025 on a solid note, with earnings and revenues beating their respective estimates. The bottom line decreased on a year-over-year basis but benefited from an increase in the Health Care Benefits and Pharmacy & Consumer Wellness segments’ operating results. The expansion of both margins in the quarter is highly encouraging. Though the company raised its EPS outlook for the full year to reflect strong performance across each of its businesses, it maintains a cautious view on elevated cost trends and possible macro headwinds ahead.
CVS’ Zacks Rank and Other Key Picks
CVS Health currently carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks from the broader medical space are Boston Scientific (BSX - Free Report) , Cardinal Health (CAH - Free Report) and Cencora (COR - Free Report) .
Boston Scientific, carrying a Zacks Rank #2 at present, reported a second-quarter 2025 adjusted EPS of 75 cents, which beat the Zacks Consensus Estimate by 4.2%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Revenues of $5.06 billion topped the Zacks Consensus Estimate by 2.3%. BSX has a long-term earnings growth rate of 14% compared with the industry’s 14.2%.
Cardinal Health, carrying a Zacks Rank #2 at present, posted third-quarter fiscal 2025 adjusted EPS of $2.35, which exceeded the Zacks Consensus Estimate by 9.3%. Revenues of $54.88 billion missed the Zacks Consensus Estimate by 0.3%.
CAH has an estimated long-term earnings growth rate of 10.9% compared with the industry’s 9.9%.
Cencora currently carries a Zacks Rank #2. The Zacks Consensus Estimate for third-quarter fiscal 2025 adjusted EPS is currently pegged at $3.78 and the same for revenues is pinned at $80.33 billion.
Cencora has an estimated long-term growth rate of 12.8%. COR’s earnings yield of 5.4% compares favorably with the industry’s 4.1%.