CVS stock rallies as health giant signals stronger-than-expected results in 2025

By Jaimy Lee The health-insurance and retail giant now expects $400 billion in revenue this year CVS Health has put out new guidance for 2025, saying it now expects higher revenue than previously outlined. CVS Health's stock was up about 4% at the market open on Tuesday after the company boosted its revenue and profit guidance for the year and detailed its full-year expectations for 2026. The healthcare giant, which operates a network of retail pharmacies as well as primary-care groups like Oak Street Health and the health insurer Aetna, issued the update ahead of its annual investor day. CVS (CVS) now expects $400 billion in revenue in 2025, up from previous guidance of $397.3 billion that it outlined in October and higher than the FactSet estimate of $398.5 billion. It also raised its guidance for adjusted earnings per share to a range of $6.60 to $6.70, up from a range of $6.55 to $6.65. That's against a FactSet consensus of $6.63. The company attributed the year's performance to Aetna returning to "target margins," to "winning and retaining" new business in its pharmacy-benefit business, and to "sustained" earnings for its pharmacies. The company also detailed its guidance for 2026, saying it expects to have revenue of $400 billion and adjusted EPS between $7 and $7.20. The FactSet consensus is for revenue of $420.4 billion and adjusted EPS of $7.17. CVS has had a strong year, with its stock gaining about 78% since Jan. 1. In October, when the company reported its third-quarter results, Mizuho Securities analyst Ann Hynes described the "solid performance" in both its benefits and retail businesses. CVS updated its 2025 guidance at that time, as well. Its stock has far outperformed the other leading health insurers this year. Elevance Health shares (ELV) are down 9% this year, while UnitedHealth Group's stock (UNH) has tumbled 36% and Cigna shares (CI) have fallen about 3%. -Jaimy Lee This content was created by MarketWatch, which is operated by Dow Jones & Co. MarketWatch is published independently from Dow Jones Newswires and The Wall Street Journal. (END) Dow Jones Newswires 12-09-25 1023ET