CVS Health (CVS) Q2 2025 earnings summary

Executive summary

• Second quarter revenues rose 8.4% year-over-year to $98.9 billion, with growth across all segments.

• Adjusted EPS was $1.81 in Q2 2025, nearly flat year-over-year, while GAAP EPS fell to $0.80 from $1.41 due to $833 million in litigation charges.

• Cash flow from operations reached $6.5 billion year-to-date, with $3.1 billion generated in Q2.

• Leadership changes included new CFO and Chief Medical Officer appointments.

• CVS Pharmacy agreed to acquire certain Rite Aid prescription files and stores, expanding its retail footprint.

Financial highlights

• Adjusted operating income for Q2 2025 was $3.8 billion, up 1.7% year-over-year, driven by Health Care Benefits and Pharmacy & Consumer Wellness; operating income decreased 21.8% to $2.4 billion due to litigation charges.

• Net income for Q2 was $1.0 billion, down from $1.8 billion a year ago.

• Q2 2025 total revenues: $98.9 billion, up from $91.2 billion in Q2 2024.

• Effective tax rate rose to 38.5% from 24.3% due to non-deductible litigation charges.

• Year-to-date cash flow from operations reached $6.5 billion.

Outlook and guidance

• 2025 adjusted EPS guidance raised to $6.30–$6.40 from $6.00–$6.20; GAAP EPS guidance lowered to $3.84–$3.94.

• Full-year revenue guidance increased to at least $391.5 billion.

• Cash flow from operations guidance raised to at least $7.5 billion.

• Healthcare benefits adjusted operating income guidance raised by $500 million to at least $2.42 billion.

• Health Services adjusted operating income guidance lowered by $200 million to at least $7.34 billion due to Oak Street pressures.