Core Viewpoint - CVS Health reported better-than-expected Q2 profits and revenue, raising its full-year adjusted profit guidance, primarily driven by strong performance in its retail pharmacy and improved insurance business [1][2] Financial Performance - Q2 revenue reached $98.92 billion, a year-over-year increase of 8.4%, surpassing market expectations of $94.5 billion, supported by growth across all three business segments [1] - Net profit was $1.02 billion (or $0.80 per share), down from $1.77 billion (or $1.41 per share) in the same period last year, but adjusted EPS was $1.81, exceeding the market expectation of $1.46 [1] - The company raised its FY2025 adjusted EPS guidance to $6.30 to $6.40, up from the previous range of $6.00 to $6.20 [1] Business Segments - The insurance segment faced pressure, with a medical loss ratio increasing from 89.6% to 89.9%, indicating that medical costs are rising faster than premium income [7] - The pharmacy and health consumer segment reported sales of $33.58 billion, a year-over-year increase of over 12%, driven by increased foot traffic in retail pharmacies [8] - The health services segment, including one of the largest pharmacy benefit managers, Caremark, generated revenue of $46.45 billion, up over 10% year-over-year, exceeding market expectations [8] Strategic Initiatives - CVS Health plans to cut costs by $2 billion over the next few years, which may involve closing some stores while optimizing regional layouts [6] - The CEO highlighted the success of the retail pharmacy business, attributing it to innovative technology and human resource investments [5] - The company is focusing on increasing vaccination rates, particularly for COVID-19 vaccines, as this is typically a high-margin business [8]