Fourth Quarter Highlights
Full-Year Highlights
2025 Full-Year Guidance
CEO Commentary
“Our integrated model allows us to uniquely deliver a simpler, connected experience that saves time, saves money, and improves health. We have continued to see growth in key areas of our business, including the Pharmacy and Consumer Wellness segment, while we address the industry-wide challenges that have impacted our Health Care Benefits segment. Through the continued dedication of our colleagues, we will be positioned for strong performance in 2025 as we deliver simply better care for consumers while improving outcomes and reducing costs.”
— David Joyner, CVS Health President and CEO
WOONSOCKET, R.I., Feb. 12, 2025 /PRNewswire/ — CVS Health Corporation (NYSE: CVS) today announced operating results for the three months and year ended December 31, 2024.
Three Months Ended
December 31,
In millions, except per share amounts
2024
2023
Change
Total revenues
$ 97,710
$ 93,813
$ 3,897
Operating income
2,368
3,373
(1,005)
Adjusted operating income (1)
2,728
4,227
(1,499)
Diluted earnings per share
$ 1.30
$ 1.58
$ (0.28)
Adjusted EPS (2)
$ 1.19
$ 2.12
$ (0.93)
Fourth quarter GAAP diluted EPS of $1.30 decreased from $1.58 in the prior year and Adjusted EPS of $1.19 decreased from $2.12 in the prior year, primarily due to a decline in the Health Care Benefits segment’s operating results, which reflect continued utilization pressure and the unfavorable impact of the Company’s Medicare Advantage star ratings for the 2024 payment year.
The Company presents both GAAP and non-GAAP financial measures in this press release to assist in the comparison of the Company’s past financial performance with its current financial performance. See “Non-GAAP Financial Information” beginning on page 11 and endnotes beginning on page 23 for explanations of non-GAAP financial measures presented in this press release. See pages 13 through 15 and page 22 for reconciliations of each non-GAAP financial measure used in this release to the most directly comparable GAAP financial measure.
Consolidated fourth quarter and full-year results
Three Months Ended
December 31,
Year Ended
December 31,
In millions, except per share amounts
2024
2023
Change
2024
2023
Change
Total revenues
$ 97,710
$ 93,813
$ 3,897
$ 372,809
$ 357,776
$ 15,033
Operating income
2,368
3,373
(1,005)
8,516
13,743
(5,227)
Adjusted operating income (1)
2,728
4,227
(1,499)
11,976
17,534
(5,558)
Net income
1,623
2,047
(424)
4,586
8,368
(3,782)
Diluted earnings per share
$ 1.30
$ 1.58
$ (0.28)
$ 3.66
$ 6.47
$ (2.81)
Adjusted EPS (2)
$ 1.19
$ 2.12
$ (0.93)
$ 5.42
$ 8.74
$ (3.32)
For the three months and year ended December 31, 2024 compared to the prior year:
Health Care Benefits segment
The Health Care Benefits segment offers a full range of insured and self-insured (“ASC”) medical, pharmacy, dental and behavioral health products and services. The segment results for the three months and years ended December 31, 2024 and 2023 were as follows:
Three Months Ended
December 31,
Year Ended
December 31,
In millions, except percentages
2024
2023
Change
2024
2023
Change
Total revenues
$ 32,958
$ 26,726
$ 6,232
$ 130,665
$ 105,646
$ 25,019
Adjusted operating income (loss) (1)
(439)
676
(1,115)
307
5,577
(5,270)
Medical benefit ratio (“MBR”) (3)
94.8 %
88.5 %
6.3 %
92.5 %
86.2 %
6.3 %
Medical membership (4)
27.1
25.7
1.4
See the supplemental information on page 17 for additional information regarding the performance of the Health Care Benefits segment.
Health Services segment
The Health Services segment provides a full range of pharmacy benefit management solutions, delivers health care services in its medical clinics, virtually, and in the home, and offers provider enablement solutions. The segment results for the three months and years ended December 31, 2024 and 2023 were as follows:
Three Months Ended
December 31,
Year Ended
December 31,
In millions
2024
2023
Change
2024
2023
Change
Total revenues
$ 47,020
$ 49,146
$ (2,126)
$ 173,605
$ 186,843
$ (13,238)
Adjusted operating income (1)
1,761
1,860
(99)
7,243
7,312
(69)
Pharmacy claims processed (5) (6)
499.4
600.8
(101.4)
1,917.6
2,344.3
(426.7)
See the supplemental information on page 18 for additional information regarding the performance of the Health Services segment.
Pharmacy & Consumer Wellness segment
The Pharmacy & Consumer Wellness segment dispenses prescriptions in its retail pharmacies and through its infusion operations, provides ancillary pharmacy services including pharmacy patient care programs, diagnostic testing and vaccination administration, and sells a wide assortment of health and wellness products and general merchandise. The segment also provides pharmacy services to long-term care facilities and pharmacy fulfillment services to support the Health Services segment’s specialty and mail order pharmacy offerings. The segment results for the three months and years ended December 31, 2024 and 2023 were as follows:
Three Months Ended
December 31,
Year Ended
December 31,
In millions
2024
2023
Change
2024
2023
Change
Total revenues
$ 33,514
$ 31,185
$ 2,329
$ 124,500
$ 116,763
$ 7,737
Adjusted operating income (1)
1,758
2,027
(269)
5,774
5,963
(189)
Prescriptions filled (5) (6)
445.9
431.5
14.4
1,715.5
1,649.1
66.4
See the supplemental information on page 19 for additional information regarding the performance of the Pharmacy & Consumer Wellness segment.
2025 Full-year guidance
The Company issued its full-year 2025 GAAP diluted EPS guidance range of $4.58 to $4.83 and its 2025 Adjusted EPS guidance range of $5.75 to $6.00. The Company also issued its full-year 2025 cash flow from operations guidance of approximately $6.5 billion.
The adjustments between full-year 2025 GAAP diluted EPS and Adjusted EPS include amortization of intangible assets, acquisition-related integration costs, office real estate optimization charges and the corresponding income tax benefit or expense related to the items excluded from adjusted income attributable to CVS Health.
Teleconference and webcast
The Company will be holding a conference call today for investors at 8:00 a.m. (Eastern Time) to discuss its fourth quarter and full-year results. An audio webcast of the call will be broadcast simultaneously for all interested parties through the Investor Relations section of the CVS Health website at http://investors.cvshealth.com. This webcast will be archived and available on the website for a one-year period following the conference call.
About CVS Health
CVS Health is a leading health solutions company building a world of health around every consumer, wherever they are. As of December 31, 2024, the Company had more than 9,000 retail pharmacy locations, more than 1,000 walk-in and primary care medical clinics, a leading pharmacy benefits manager with approximately 90 million plan members, and a dedicated senior pharmacy care business serving more than 800,000 patients per year. The Company also serves an estimated more than 36 million people through traditional, voluntary and consumer-directed health insurance products and related services, including highly rated Medicare Advantage offerings and a leading standalone Medicare Part D prescription drug plan. The Company’s integrated model uses personalized, technology driven services to connect people to simply better health, increasing access to quality care, delivering better outcomes, and lowering overall costs.
Cautionary statement concerning 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 Health Corporation. Statements in this press release that are forward-looking include, but are not limited to, the information under the headings “2025 Full-Year Guidance”, “CEO Commentary” and “Financial Results Summary” and the information included in the reconciliations and endnotes. By their nature, all forward-looking statements are not guarantees of future performance or results and are subject to risks and uncertainties that are difficult to predict and/or quantify. Actual results may differ materially from those contemplated by the forward-looking statements due to the risks and uncertainties described in our Securities and Exchange Commission (“SEC”) filings, including those set forth in the Risk Factors section and under the heading “Cautionary Statement Concerning Forward-Looking Statements” in our most recently filed Annual Report on Form 10-K, our Quarterly Reports on Form 10-Q for the quarterly periods ended March 31, 2024, June 30, 2024 and September 30, 2024 and our Current Reports on Form 8-K.
You are cautioned not to place undue reliance on CVS Health’s forward-looking statements. CVS Health’s forward-looking statements are and will be based upon management’s then-current views and assumptions regarding future events and operating performance, and are applicable only as of the dates of such statements. CVS Health does not assume any duty to update or revise forward-looking statements, whether as a result of new information, future events, uncertainties or otherwise.
– Tables Follow –
CVS HEALTH CORPORATION
Condensed Consolidated Statements of Operations
(Unaudited)
Three Months Ended
December 31,
Year Ended
December 31,
In millions, except per share amounts
2024
2023
2024
2023
Revenues:
Products
$ 61,911
$ 65,154
$ 231,521
$ 245,138
Premiums
30,913
25,075
122,896
99,192
Services
4,131
3,316
16,239
12,293
Net investment income
755
268
2,153
1,153
Total revenues
97,710
93,813
372,809
357,776
Operating costs:
Cost of products sold
55,268
57,419
206,287
217,098
Health care costs
29,543
22,518
115,121
86,247
Operating expenses
10,521
10,503
41,606
39,832
Restructuring charges
10
—
1,179
507
Opioid litigation charge
—
—
100
—
Loss on assets held for sale
—
—
