Core Insights - CVS Health's Pharmacy and Consumer Wellness segment has experienced an 11.1% year-over-year revenue growth in Q1 2025, driven by high vaccine demand and an extended flu season, raising questions about sustaining this momentum throughout fiscal 2025 [1][9] Group 1: Business Performance - The favorable pharmacy drug mix, particularly the rising demand for high-cost branded GLP-1 medications, is expected to benefit CVS [2] - CVS Pharmacy's inclusion in Novo Nordisk's NovoCare pharmacy network allows for expanded access to Wegovy at over 9,000 community health locations [2] - The implementation of the CostVantage pharmacy reimbursement model is anticipated to enhance future results by reducing market cross-subsidization [2] Group 2: Sales and Market Trends - Rising same-store sales and prescription volumes are projected to boost adjusted operating income for CVS Health's PCW business [3] - Retail pharmacy remains crucial, supported by demographic trends and increasing prescription drug usage [3] Group 3: Strategic Developments - CVS completed a three-year plan to close 900 stores, achieving a retail pharmacy script share of 27.6% in Q1 2025, an increase of nearly 70 basis points year over year [4] - The company's consistent execution and commitment to pharmacy access are expected to maintain its market position despite a smaller footprint [4] Group 4: Competitive Landscape - Walmart reported strong health and wellness sales growth in fiscal 2026, with a 91% year-over-year increase in deliveries under three hours [6] - Walgreens Boots Alliance achieved 7.8% year-over-year sales growth in its U.S. Retail Pharmacy segment, focusing on a retail-pharmacy-led turnaround strategy [7] Group 5: Financial Metrics - CVS shares have increased by 18.9% over the past year, outperforming the industry's 14.6% decline [8] - The stock is trading at a forward 12-month earnings multiple of 10.18X, lower than the industry average of 14.07X, and carries a Value Score of A [10]

First Quarter 2025 May 1, 2025 Earnings Conference Call J. David Joyner President and Chief Executive Officer Thomas F. Cowhey Executive Vice President and Chief Financial Officer 1 ©2025 CVS Health and/or one of its affiliates. Confidential and proprietary. Cautionary Statement concerning forward-looking statements This presentation includes forward-looking statements. The Private Securities Litigation Reform Act of 1995 provides a safe harbor for forward-looking statements made by or on behalf of CVS Heal ...