CVS Health(US:CVS) CNBC·2025-10-29 10:31Core Viewpoint - CVS Health reported strong third-quarter earnings and revenue, exceeding estimates, and raised its adjusted profit outlook due to strength in its insurance unit and retail pharmacy business [1][3]. Financial Performance - The company expects fiscal 2025 adjusted earnings of $6.55 to $6.65 per share, an increase from the previous guidance of $6.30 to $6.40 per share, marking three consecutive quarters of raised outlooks [3]. - CVS reported a net loss of $3.99 billion, or $3.13 per share, for the third quarter, compared to a net income of $71 million, or 7 cents per share, for the same period last year [5]. - Adjusted earnings were $1.60 per share for the quarter, exceeding the expected $1.37 [9]. Revenue Growth - CVS achieved sales of $102.87 billion for the third quarter, a 7.8% increase from the same period last year, with all three business segments contributing to growth [8]. Strategic Changes - The company is implementing management changes and strategic adjustments in its health care delivery segment, including a reduction in the number of primary care clinics planned for 2026 and beyond [6][7]. - CVS plans to close 16 locations of primary care provider Oak Street Health, while maintaining its commitment to value-based care [7]. Business Unit Performance - Recovery in Aetna, CVS's insurance unit, is highlighted as a key factor in the positive outlook, despite challenges from higher-than-expected medical costs [4]. - A strong sales season for its pharmacy benefit manager, Caremark, contributed to the overall revenue growth [5].