CVS Health reported a strong Q2 2025, with adjusted earnings per share of $1.81, surpassing Wall Street estimates of $1.46. Total revenue rose 8.4% to $98.9 billion, exceeding expectations of $94.7 billion. The performance was driven by a significant recovery in its Aetna insurance business, which saw a medical loss ratio of 89.9%, better than the anticipated 91.16%. Strong retention at CVS Caremark and growth in CVS Pharmacy also contributed. The company raised its full-year adjusted EPS guidance to $6.30-$6.40 from $6.00-$6.20 and increased its cash flow from operations forecast to at least $7.5 billion from $7 billion. However, CVS plans to exit the Affordable Care Act individual exchange market in 2026 due to ongoing underperformance.
