CVS Well being reported $1 billion in second quarter web revenue as the corporate begins to get a deal with on the well being profit prices which have dogged its Aetna medical insurance enterprise in addition to trade rivals, the corporate mentioned Thursday, July 31, 2025. On this photograph is .CVS Well being Corp. signage on the ground of the New York Inventory Change (NYSE) in New York, US, on Monday, July 28, 2025. Photographer: Michael Nagle/Bloomberg© 2025 Bloomberg Finance LP
CVS Well being Thursday reported $1 billion in second quarter web revenue as the corporate begins to get a deal with on the well being profit prices which have dogged its Aetna medical insurance enterprise in addition to trade rivals.
Although the corporate’s medical profit ratio, which is the share of premium income that goes towards medical prices, continues to be thought of excessive by trade requirements, it rose solely barely within the second quarter to 89.9% in comparison with 89.6% within the yr in the past interval. And for the six-month interval, the medical profit ratio was 88.6% in comparison with 90% for the primary six months of final yr.
“We’re inspired by a second consecutive quarter of stable 2025 outcomes whereas we proceed to navigate a dynamic setting,” mentioned CVS Well being’s chief monetary officer, Brian Newman.
CVS’ web revenue fell to $1.02 billion, or 80 cents a share, in comparison with $1.77 billion, or $1.41 a share, within the second quarter of final yr. CVS web revenue was harm within the quarter by the impression of litigation fees that embrace penalties towards the corporate’s Omnicare long-term care pharmacy over allegations the unit billed the federal government for false claims.
Nonetheless, CVS mentioned adjusted earnings per share of $1.81 “remained comparatively constant” in comparison with the prior yr’s $1.83 adjusted earnings per share. “The corporate’s monetary outcomes mirror improved working efficiency within the Well being Care Advantages and Pharmacy & Shopper Wellness segments, largely offset by a decline within the Well being Companies phase,” CVS mentioned in its earnings report.
CVS, which has greater than 26 million members in its Aetna model medical insurance plans, mentioned whole membership decreased 358,000 since March 31, “reflecting the beforehand introduced membership declines within the particular person trade product line.”
CVS mentioned earlier this yr it will be exiting the person enterprise underneath the Inexpensive Care Act efficient with the 2026 profit yr. CVS has about 1 million individuals in its Aetna model particular person medical insurance plans unfold throughout 17 states.
Complete revenues within the firm’s well being care advantages phase elevated 11.6% to almost $36.3 billion within the second quarter “in comparison with the prior yr primarily pushed by will increase within the Authorities enterprise, largely because of the impression of the Inflation Discount Act on the Medicare Half D program,” CVS mentioned. “Adjusted working revenue elevated 39.4% (to $1.3 billion) for the three months ended June 30, 2025 in comparison with the prior yr primarily pushed by the favorable year-over-year impression of adjustments to the Firm’s particular person trade enterprise threat adjustment estimates, improved underlying efficiency within the Authorities enterprise and better favorable prior interval growth.”
CVS, which additionally operates about 9,000 retail pharmacy areas, greater than 1,000 MinuteClinics in its drugstores and one of many nation’s largest pharmacy profit firms often called Caremark, mentioned whole firm revenues elevated 8.4% to $98.9 billion in comparison with $91.2 billion within the year-ago interval, “pushed by income development throughout all working segments,” CVS mentioned in its earnings report.
“What individuals need most — a related, easier well being care expertise — is what CVS Well being uniquely gives. For the 185 million individuals we serve, we ship higher entry, better affordability and aligned advocacy. Our sturdy efficiency demonstrates the continued focus we’ve got on operational and monetary enchancment throughout our companies, led by a big and sturdy restoration at Aetna, sturdy retention at CVS Caremark and development and momentum at CVS Pharmacy.”
Within the firm’s pharmacy and wellness phase, whole revenues elevated 12.5% to $33.58 billion in comparison with the prior yr “primarily pushed by pharmacy drug combine and elevated prescription and entrance retailer quantity, partially offset by continued pharmacy reimbursement strain,” CVS mentioned. Adjusted working revenue elevated 7.6% to $1.33 billion “in comparison with the prior yr primarily pushed by elevated prescription and entrance retailer quantity, partially offset by continued pharmacy reimbursement strain.”
