synopsis

The company now expects full-year adjusted EPS in the range of $6.00 to $6.20, up from its previous guidance of $5.75 to $6.00.

Shares of CVS Health Corporation (CVS) traded 10% higher in pre-market on Thursday after the company reported better-than-expected first-quarter (Q1) earnings and raised its full-year profit guidance.

CVS Health reported Q1 total revenue of $94.6 billion, up 7% compared to the prior year, and beating an analyst estimate of $93.35 billion, as per FinChat data.

Adjusted earnings per share (EPS) came in at $2.25, up from $1.31 in the corresponding period of 2024, and above an analyst estimate of $1.67.  

The company also updated its full-year guidance, citing strong performance across its businesses. However, it maintains a cautious view for the remainder of the year, in light of continued elevated cost trends and the potential for macroeconomic headwinds, it said. 

CVS Health now expects full-year adjusted EPS in the range of $6.00 to $6.20, up from its previous guidance of $5.75 to $6.00.

CEO David Joyner highlighted that the firm delivered positive results across Health Care Benefits, Health Services, and Pharmacy & Consumer Wellness segments.

Revenues from the Health Care Benefits segment rose 8% year on year to $34.81 billion. Adjusted operating income increased $1.3 billion to $1.99 billion, driven by improved underlying performance in Medicare, among other factors.

Medical benefits ratio, or the percent of premiums spent on patient care, dropped to 87.3% in the quarter from 90.4% in the corresponding period of 2024.

The company also stated that it has decided to exit the individual exchange business, where its unit, Aetna, independently operated Affordable Care Act (ACA) plans.

Revenue from the Health Services Segment increased 7.9% to $43.46 billion while adjusted operating income increased 17.6% to $1.60 billion.

The Pharmacy & Consumer Wellness segment recorded an 11.1% increase in total revenues to $31.91 billion while adjusted operating income increased 11.6% to $1.31 billion.

On Stocktwits, retail sentiment around CVS fell further within the ‘bearish’ territory over the past 24 hours while message volume increased from ‘extremely low’ to ‘low’ levels.

CVS's Sentiment Meter and Message Volume as of 7:20 a.m. ET on May 1, 2025 | Source: Stocktwits

CVS stock is up approximately 51% this year and over 18% in the past 12 months.

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