CVS Health (CVS) Q4 2024 earnings summary

Executive summary

• Q4 2024 revenues rose 4.2% year-over-year to $97.7B, with adjusted EPS of $1.19 and GAAP EPS of $1.30; full-year revenues reached $372.8B, up 4.2% from 2023.

• Initial 2025 adjusted EPS guidance is $5.75–$6.00, representing ~10% year-over-year growth after adjusting for prior year reserve development, driven by expected Aetna recovery and Health Services growth.

• Leadership transition focused on stabilizing Aetna, pharmacy transformation, biosimilar adoption, and building a strong management team.

• Completed three-year store closure plan; further footprint optimization planned for 2025.

• Cash flow from operations for 2024 was $9.1B.

Financial highlights

• Q4 adjusted EPS: $1.19; adjusted operating income: $2.73B (down from $4.23B YoY).

• Q4 revenues: $97.7B, up from $93.8B in Q4 2023.

• Full-year 2024 revenue: $372.8B; adjusted operating income: $11.98B.

• Returned $3.3B to shareholders via dividends in 2024.

• Ended Q4 with $3.8B in cash and a leverage ratio of 4.7x.

Outlook and guidance

• 2025 adjusted EPS guidance: $5.75–$6.00; GAAP EPS: $4.58–$4.83.

• 2025 total revenue guidance: at least $385.9B.

• 2025 cash flow from operations expected at ~$6.5B.

• 2025 capital expenditures: $2.8–$3.0B.

• 2025 adjusted effective tax rate: ~25.5%.