CVS Reports Big Loss On Devalued Oak Street Clinics But Aetna Costs Are Stable

Core Insights - CVS Health reported a significant third-quarter loss of $4 billion, primarily due to the reduced value of its Oak Street Health primary care facilities [2][3] - Despite the loss, CVS raised its adjusted earnings per share guidance to a range of $6.55 to $6.65, up from $6.30 to $6.40, attributed to improved performance in its Aetna health insurance business [4] Financial Performance - The company experienced a net loss of $3.98 billion, or $3.13 per share, due to a $5.7 billion goodwill impairment charge related to the Health Care Delivery reporting unit, which includes Oak Street [6] - CVS's medical benefit ratio improved to 92.8% in the third quarter from 95.2% in the same period last year, indicating better management of health costs [5] - Revenues rose nearly 8% to a record $102.9 billion, driven by growth across all operating segments, with adjusted operating income increasing over 35% to $3.45 billion [10] Strategic Changes - CVS announced plans to close 16 Oak Street Health Centers, representing 7% of its senior-focused primary care locations, following challenges in the business's growth [7][8] - The company is reducing the number of new primary care clinics it will open in 2026 and beyond, reflecting updated financial projections and strategic changes in its health care delivery management team [9]