CVS Health Hikes Its Outlook, and Says It Plans to Roll Out AI Platform

Core Insights - CVS Health has raised its full-year earnings forecast and introduced an AI strategy to enhance engagement [1][6] Financial Outlook - CVS now expects full-year adjusted earnings per share (EPS) of $6.60 to $6.70, an increase from the previous forecast of $6.55 to $6.65 [2] - The company anticipates revenue of at least $400 billion, up from the earlier outlook of at least $397.3 billion [2] - For fiscal year 2026, CVS projects adjusted EPS of $5.94 to $6.14 on revenue of at least $400 billion [2] Business Performance - Strong earnings growth at Aetna and an increase in new customers for its pharmacy-benefits business contributed to the improved outlook [3] - CVS CFO Brian Newman indicated that the company is closing out 2025 with significant momentum and expects continued strong earnings growth in 2026 [3] Strategic Initiatives - CVS has outlined a new engagement plan that includes developing a platform with AI capabilities to integrate various healthcare components into a single app [5] - The company's shares have increased by approximately 75% this year, although they remain below their highs from 2022 [5] Investor Confidence - The improved outlook may enhance investor confidence in CVS's turnaround efforts under new CEO David Joyner, who took over in October amid challenges such as rising medical costs and reduced store foot traffic [4]