CVS Health lifts guidance, shares spark

(Sharecast News) - CVS Health boosted full-year guidance on Tuesday, as it continued to benefit from a wide-ranging turnaround plan. Updating investors, chief financial officer Brian Newman said: "We are closing out 2025 with meaning momentum across our businesses and we expect another year of strong earnings growth in 2026."

The health conglomerate, which owns one of America's largest pharmacy chains, now expects total revenues to be at least $400bn this year, up from previous guidance for $397.3bn.

Operating income forecasts were increased to between $4.37bn and $4.54bn - from between $4.29bn and $4.46bn - and adjusted earnings per share of $6.60 to $6.70. It had previously guided for EPS between $6.55 and $6.65.

Looking ahead to 2026, CVS pencilled in total revenues of $400bn, and EPS between $7 and $7.20.

Wall Street had been hoping for a 2026 full-year revenues estimate closer to $419bn.

However, that did not affect CVS's shares, which by 1330 GMT had risen 2% in pre-market trading. The stock has soared 73% so far this year.

Under chief executive David Joynor, who was appointed in October 2024, CVS has sought to boost sales and earnings by cutting costs, exiting underperforming markets and strengthening management.

It has now lifted its profit forecast for 2025 four times.

Newman said: "We are committed to doing what we say. Our guidance philosophy is centred on providing credible and clear expectations with opportunities for outperformance."

CVS currently has around 9,000 pharmacies and 1,000 walk-in and primary care medical clinics.

It also serves around 37m people through health insurance products and related services, including a Medicare Part D prescription drug plan.