CVS Health (NYSE:CVS) boosted its earnings and revenue expectations for the current fiscal year, even as its initial 2026 sales forecast fell short of Wall Street estimates.
Speaking at its annual investor day, the company raised its adjusted earnings guidance for 2025 for the fourth time, reflecting continued progress in its turnaround strategy.
CVS now anticipates adjusted earnings of $6.60 to $6.70 per share, up from the prior range of $6.55 to $6.65. Analysts surveyed by Bloomberg had expected guidance of about $6.63. The company also lifted its revenue outlook, projecting at least $400 billion in annual sales, compared with its previous floor of $397.3 billion and consensus expectations of $398.85 billion.
CEO David Joyner said in a statement, “We are executing with discipline, strengthening our core businesses and delivering meaningful progress across our enterprise.”
During his first year leading the company, Joyner has pushed for cost reductions, reduced the firm’s presence in weaker-performing markets, and refreshed the leadership team as part of a broader operational overhaul.
He added, “As we look ahead, we are focused on building a simpler, more connected and more affordable health care experience for consumers, health care professionals, and payors, delivering value for all stakeholders.”
CFO Brian Newman said the company’s guidance “highlights the power of our diversified enterprise in a constantly evolving industry.”
Shares of CVS climbed more than 3% in premarket trading on Tuesday.
In addition to its nationwide pharmacy network, CVS operates its Caremark pharmacy benefit management arm and the Aetna insurance business. Like rival UnitedHealth Group (NYSE:UNH), CVS has been navigating increased costs tied to a rise in elective procedures among patients enrolled in government-backed health plans after the pandemic. Still, those expenses have generally remained in line with analyst expectations.
Looking to fiscal 2026, CVS projected total revenue of at least $400 billion, well below the average analyst estimate of $418.32 billion. Adjusted earnings are expected to come in at $7.00 to $7.20 per share, compared with expectations of $7.17.
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