CVS HEALTH CORPORATION REPORTS FOURTH QUARTER AND FULL-YEAR 2025 RESULTS

Core Insights - CVS Health Corporation reported strong financial results for the fourth quarter and full year ended December 31, 2025, with total revenues reaching $105.7 billion for the quarter, an increase of 8.2% year-over-year, and $402.1 billion for the full year, up 7.8% compared to the previous year [3][4][8] - The company aims to transform the healthcare experience and is positioned to become the most trusted healthcare company in America, as stated by CEO David Joyner [1][2] Financial Results Summary - Fourth quarter GAAP diluted EPS was $2.30, up from $1.30 in the prior year, while adjusted EPS decreased to $1.09 from $1.19 [3][4] - Operating income for the fourth quarter was $2.1 billion, down 10.8% year-over-year, primarily due to a decline in adjusted operating income and net realized capital gains [8] - For the full year, operating income decreased 45.3% to $4.66 billion, impacted by a $5.7 billion goodwill impairment charge and approximately $1.2 billion in legacy litigation charges [8] Segment Performance Health Care Benefits Segment - Total revenues for the Health Care Benefits segment increased to $36.3 billion for the fourth quarter, up 10.1% year-over-year, and $143.4 billion for the full year, an increase of 9.7% [7][11] - Adjusted operating loss for the fourth quarter was $676 million, while adjusted operating income for the full year increased by $2.6 billion [7][11] Health Services Segment - The Health Services segment reported total revenues of $51.2 billion for the fourth quarter, a 10.1% increase, and $190.4 billion for the full year, up 9.7% [10][11] - Adjusted operating income for the fourth quarter was $1.9 billion, an increase of 9.2%, while it decreased by 1.3% for the full year [12] Pharmacy & Consumer Wellness Segment - Total revenues for the Pharmacy & Consumer Wellness segment reached $37.7 billion for the fourth quarter, up 12.4%, and $139.4 billion for the full year, an increase of 11.9% [14][19] - Adjusted operating income increased by 8.7% for the fourth quarter and 4.6% for the full year [19] Cash Flow and Guidance - The company generated cash flow from operations of $10.6 billion for the year, with updated guidance for cash flow from operations set to at least $9.0 billion [4][8] - CVS Health confirmed GAAP diluted EPS guidance for 2026 in the range of $5.94 to $6.14 and adjusted EPS guidance of $7.00 to $7.20 [4][8]