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 posted Q3 adjusted EPS of $1.60, up 46.8% year over year and above the consensus estimate.
CVS Health's revenue rose 7.8% to $102.87B, with all segments contributing to the quarterly growth.
CVS raised its 2025 adjusted EPS forecast to $6.55-$6.65 from the prior $6.30-$6.40 range.
CVS Health Corporation (CVS - Free Report) posted third-quarter 2025 adjusted earnings per share (EPS) of $1.60, up 46.8% year over year. The metric topped the Zacks Consensus Estimate by 17.65%. 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 loss was $3.13 compared to EPS of 7 cents in the prior-year period.
CVS Q3 Revenues
Revenues rose 7.8% year over year to $102.87 billion. The top line surpassed the Zacks Consensus Estimate by 4.66%. This year-over-year upside was driven by revenue growth across all segments.
Following the announcement, CVS shares were down 2.1% in the pre-market trading session today.
Detailed Analysis of CVS’ Q3 Revenues
Health Services revenues increased 11.6% year over year to $49.27 billion, mainly driven by pharmacy drug mix and brand inflation, partially offset by continued pharmacy client price improvements.
Total pharmacy claims processed fell 1.8% on a 30-day equivalent basis compared with the prior-year level.
CVS Health Corporation Price, Consensus and EPS Surprise
Revenues in the Pharmacy & Consumer Wellness segment rose 11.7% year over year to $36.21 billion. The upside was primarily driven by the pharmacy drug mix and increased prescription volume.
Within the Health Care Benefits segment, the company registered revenues worth $36 billion, up 9.1% 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 7.7% to $57.05 billion in the third quarter. The gross profit jumped 7.9% to $45.83 billion. The gross margin expanded 3 basis points (bps) to 44.6%.
The adjusted operating margin in the quarter under review expanded 12 bps to 33.6% despite a 6.9% rise in total operating expenses ($11.29 billion).
Liquidity Position of CVS
CVS Health exited the third quarter of 2025 with cash and cash equivalents of $9.10 billion compared with $11.79 billion at the end of the second quarter. The long-term debt was $60.51 billion compared with $57.29 billion in the previous quarter.
The cumulative net cash provided by operating activities at the end of the third quarter of 2025 was $7.25 billion, almost the same as the year-ago period’s figure.
CVS’ 2025 Guidance
CVS Health raised its 2025 adjusted EPS guidance range to $6.55-$6.65 (earlier $6.30 to $6.40). The Zacks Consensus Estimate for the metric is currently pegged at $6.36.
Our Take on CVS Stock
CVS Health exited the third quarter of 2025 with both earnings and revenues beating their respective estimates. The metrics were also up on a year-over-year basis. Within Pharmacy & Consumer Wellness, incremental volume was driven by the company's acquisition of Rite Aid prescription files. CVS’ pharmacy benefit manager, Caremark, closed another strong selling season with retention in the high 90s. Despite higher costs and expenses, the margins remained favorable in the quarter. In addition, the raised full-year outlook for the bottom line is also encouraging.
Meanwhile, persistent pharmacy reimbursement pressure continues to weigh on results.
CVS’ Zacks Rank and Key Picks
CVS Health currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the broader medical space are Medpace Holdings (MEDP - Free Report) , Intuitive Surgical (ISRG - Free Report) and Boston Scientific (BSX - Free Report) .
Medpace, currently sporting a Zacks Rank #1 (Strong Buy), reported a third-quarter 2025 EPS of $3.86, which surpassed the Zacks Consensus Estimate by 10.29%. Revenues of $659.9 million beat the Zacks Consensus Estimate by 3.04%. You can see the complete list of today’s Zacks #1 Rank stocks here.
MEDP has an estimated earnings growth rate of 17.1% for 2025 compared with the industry’s 16.6% growth. The company surpassed earnings estimates in each of the trailing four quarters, the average surprise being 14.28%.
Intuitive Surgical, carrying a Zacks Rank #2 (Buy) at present, posted a third-quarter 2025 adjusted EPS of $2.40, exceeding the Zacks Consensus Estimate by 20.6%. Revenues of $2.51 billion topped the Zacks Consensus Estimate by 3.9%.
ISRG has an estimated long-term earnings growth rate of 15.7% compared with the industry’s 11.9% growth. The company’s earnings outpaced estimates in each of the trailing four quarters, the average surprise being 16.34%.
Boston Scientific, currently carrying a Zacks Rank #2, reported a third-quarter 2025 adjusted EPS of 75 cents, which surpassed the Zacks Consensus Estimate by 5.6%. Revenues of $5.07 billion topped the Zacks Consensus Estimate by 1.9%.
BSX has an estimated long-term earnings growth rate of 16.4% compared with the industry’s 13.5% growth. The company’s earnings beat estimates in each of the trailing four quarters, the average surprise being 7.36%.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
CVS Stock Falls Despite Q3 Earnings & Revenue Beat, '25 EPS View Up
Key Takeaways
CVS Health Corporation (CVS - Free Report) posted third-quarter 2025 adjusted earnings per share (EPS) of $1.60, up 46.8% year over year. The metric topped the Zacks Consensus Estimate by 17.65%. 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 loss was $3.13 compared to EPS of 7 cents in the prior-year period.
CVS Q3 Revenues
Revenues rose 7.8% year over year to $102.87 billion. The top line surpassed the Zacks Consensus Estimate by 4.66%. This year-over-year upside was driven by revenue growth across all segments.
Following the announcement, CVS shares were down 2.1% in the pre-market trading session today.
Detailed Analysis of CVS’ Q3 Revenues
Health Services revenues increased 11.6% year over year to $49.27 billion, mainly driven by pharmacy drug mix and brand inflation, partially offset by continued pharmacy client price improvements.
Total pharmacy claims processed fell 1.8% on a 30-day equivalent basis compared with the prior-year level.
CVS Health Corporation Price, Consensus and EPS Surprise
CVS Health Corporation price-consensus-eps-surprise-chart | CVS Health Corporation Quote
Revenues in the Pharmacy & Consumer Wellness segment rose 11.7% year over year to $36.21 billion. The upside was primarily driven by the pharmacy drug mix and increased prescription volume.
Within the Health Care Benefits segment, the company registered revenues worth $36 billion, up 9.1% 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 7.7% to $57.05 billion in the third quarter. The gross profit jumped 7.9% to $45.83 billion. The gross margin expanded 3 basis points (bps) to 44.6%.
The adjusted operating margin in the quarter under review expanded 12 bps to 33.6% despite a 6.9% rise in total operating expenses ($11.29 billion).
Liquidity Position of CVS
CVS Health exited the third quarter of 2025 with cash and cash equivalents of $9.10 billion compared with $11.79 billion at the end of the second quarter. The long-term debt was $60.51 billion compared with $57.29 billion in the previous quarter.
The cumulative net cash provided by operating activities at the end of the third quarter of 2025 was $7.25 billion, almost the same as the year-ago period’s figure.
CVS’ 2025 Guidance
CVS Health raised its 2025 adjusted EPS guidance range to $6.55-$6.65 (earlier $6.30 to $6.40). The Zacks Consensus Estimate for the metric is currently pegged at $6.36.
Our Take on CVS Stock
CVS Health exited the third quarter of 2025 with both earnings and revenues beating their respective estimates. The metrics were also up on a year-over-year basis. Within Pharmacy & Consumer Wellness, incremental volume was driven by the company's acquisition of Rite Aid prescription files. CVS’ pharmacy benefit manager, Caremark, closed another strong selling season with retention in the high 90s. Despite higher costs and expenses, the margins remained favorable in the quarter. In addition, the raised full-year outlook for the bottom line is also encouraging.
Meanwhile, persistent pharmacy reimbursement pressure continues to weigh on results.
CVS’ Zacks Rank and Key Picks
CVS Health currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the broader medical space are Medpace Holdings (MEDP - Free Report) , Intuitive Surgical (ISRG - Free Report) and Boston Scientific (BSX - Free Report) .
Medpace, currently sporting a Zacks Rank #1 (Strong Buy), reported a third-quarter 2025 EPS of $3.86, which surpassed the Zacks Consensus Estimate by 10.29%. Revenues of $659.9 million beat the Zacks Consensus Estimate by 3.04%. You can see the complete list of today’s Zacks #1 Rank stocks here.
MEDP has an estimated earnings growth rate of 17.1% for 2025 compared with the industry’s 16.6% growth. The company surpassed earnings estimates in each of the trailing four quarters, the average surprise being 14.28%.
Intuitive Surgical, carrying a Zacks Rank #2 (Buy) at present, posted a third-quarter 2025 adjusted EPS of $2.40, exceeding the Zacks Consensus Estimate by 20.6%. Revenues of $2.51 billion topped the Zacks Consensus Estimate by 3.9%.
ISRG has an estimated long-term earnings growth rate of 15.7% compared with the industry’s 11.9% growth. The company’s earnings outpaced estimates in each of the trailing four quarters, the average surprise being 16.34%.
Boston Scientific, currently carrying a Zacks Rank #2, reported a third-quarter 2025 adjusted EPS of 75 cents, which surpassed the Zacks Consensus Estimate by 5.6%. Revenues of $5.07 billion topped the Zacks Consensus Estimate by 1.9%.
BSX has an estimated long-term earnings growth rate of 16.4% compared with the industry’s 13.5% growth. The company’s earnings beat estimates in each of the trailing four quarters, the average surprise being 7.36%.