CVS Health (CVS) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenues rose 7.0% year-over-year to $94.6B, with adjusted EPS of $2.25 and strong performance across all business segments.

• Net income increased 59.8% to $1.78B, and adjusted operating income grew 54.9% to $4.6B, despite significant litigation and asset loss charges.

• Raised full-year 2025 adjusted EPS guidance to $6.00–$6.20, citing strong execution and prudent outlook.

• Announced leadership changes, including new CFO and CMO appointments, and continued portfolio management with exits from ACA, ACO, and MSSP programs.

• Announced partnership with Novo Nordisk to expand access to Wegovy, leveraging integrated model and retail footprint.

Financial highlights

• Q1 2025 total revenues: $94.6B, up from $88.4B in Q1 2024, with growth across all segments.

• Adjusted operating income: $4.6B, up from $2.96B; GAAP EPS: $1.41, up from $0.88; adjusted EPS: $2.25, up from $1.31.

• Cash flow from operations was $4.6B for the quarter.

• Returned $840M to shareholders via quarterly dividend.

• Net income was $1.8B, up from $1.1B year-over-year.

Outlook and guidance

• Raised 2025 adjusted EPS guidance to $6.00–$6.20; full-year revenue expected at least $382.6B, revised downward due to program exits.

• Full-year cash flow from operations now expected at ~$7.0B.

• Projected consolidated adjusted operating income for 2025: $13.31B–$13.65B.

• Full-year GAAP diluted EPS guidance revised to $4.23–$4.43.

• Guidance reflects strong segment performance but maintains caution due to elevated cost trends and macro headwinds.