"CVS Health reported third-quarter results this morning that beat adjusted earnings expectations but delivered a mixed message on operations and cash flow. Adjusted EPS came in at $1.60, well above the $1.37 consensus estimate. Revenue reached $102.87 billion, topping the $98.85 billion expectation and books sales grew 7.8% year over year as all three of its business segments grew. Yet the stock barely moved in after-hours trading, settling near $82.40."
"The company took a $5.7 billion goodwill impairment charge in Health Care Delivery, which pushed GAAP earnings to a loss of $3.13 per share. This non-cash charge reflects management's reassessment of the value of certain health care delivery assets. While the impairment doesn't affect adjusted earnings, it signals that some of CVS's past acquisitions or investments in that segment have underperformed expectations. The charge is a reminder that integration challenges persist within parts of the portfolio."
CVS reported adjusted EPS of $1.60 versus a $1.37 consensus and revenue of $102.87 billion, with sales up 7.8% year over year and all three segments growing. Adjusted operating income increased 35.8% year over year, reflecting operational leverage and improved cost management. The company recorded a $5.7 billion goodwill impairment in Health Care Delivery that produced a GAAP loss of $3.13 per share without affecting adjusted earnings. CVS raised full-year 2025 adjusted EPS guidance to $6.55–$6.65 but revised operating cash flow guidance down to $7.0 billion from at least $7.5 billion. The stock showed a muted after-hours reaction.
Read at 24/7 Wall St.
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