CVS HEALTH Corp

CVS Health Corporation operates as a leading health solutions company focused on building a comprehensive health ecosystem around consumers and integrating care delivery. The company manages approximately 9,000 ¹ retail locations and over 1,000 ² walk-in and primary care medical clinics. Additionally, it maintains a significant pharmacy benefits manager (PBM) business, serving approximately 87 million ³ plan members, alongside expanding specialty pharmacy solutions. Through its diverse offerings, CVS Health serves an estimated more than 37 million ⁴ people via traditional, voluntary, and consumer-directed health insurance products and related services, which include Medicare Advantage and a prominent standalone Medicare Part D prescription drug plan. The company's integrated model aims to drive value through personalized, technology-driven care delivery and health services, ultimately enhancing access to quality care, improving health outcomes, and reducing overall healthcare costs.

The company's operations are divided into four ⁵ reportable segments: Health Care Benefits, Health Services, Pharmacy & Consumer Wellness, and Corporate/Other. The Health Care Benefits segment, operating under Aetna® ⁶, is a major diversified health care benefits provider. As of December 31, 2025 ⁷, this segment served an estimated more than 37 million ⁸ individuals, providing resources to help them make informed health care decisions in consultation with professionals.

The Health Care Benefits segment offers a wide array of products and services, categorized as "Insured" (where the company assumes risk for medical and dental costs) and "ASC" (administrative services contracts where the plan sponsor assumes risk). Commercial Medical products include point-of-service (POS), preferred provider organization (PPO), health maintenance organization (HMO), and indemnity benefit plans. These offerings also encompass health savings accounts (HSAs) and consumer-directed health plans. The segment provides medical stop loss insurance, covering large individual or aggregate claims above a pre-set annual threshold for self-insured employers. Supplemental products such as dental plans, behavioral health and employee assistance programs, provider network access, and vision products are also offered. Historically, the company sold Insured plans directly to individual consumers through public health insurance exchanges through the year ended December 31, 2025 ⁹, but exited these operations effective January 2026 ¹⁰.

Government Medical products include Medicare Advantage plans, Medicare Supplement plans, prescription drug coverage for Medicare beneficiaries through Medicare Part D prescription drug plans (PDPs), and Medicaid and Children's Health Insurance Programs (CHIP) health care management services. In 2025 ¹¹, Medicare Advantage HMO and/or PPO products were offered in 44 states ¹² and Washington, D.C. ¹³, with national PPO products available for qualifying employer groups. The company was a national provider of Medicare Part D plans, offering PDP plans in all 50 states ¹⁴ and Washington, D.C. ¹⁵ in 2025 ¹⁶. Medicare Supplement plans were offered in 49 states ¹⁷ and Washington, D.C. ¹⁸ in 2025 ¹⁹. Medicaid and CHIP services were provided in 15 states ²⁰ in 2025 ²¹, either on an Insured or ASC basis. For beneficiaries dually eligible for Medicare and Medicaid ("Duals"), the company coordinates 100% ²² of their care.

Financially, CVS Health reported total revenues of $386,013 million ²³ for the fiscal year 2025 ²⁴, an increase from $360,707 million ²⁵ in 2024 ²⁶ and $341,200 million ²⁷ in 2023 ²⁸. Operating income for 2025 ²⁹ was $14,978 million ³⁰, up from $13,991 million ³¹ in 2024 ³² and $10,517 million ³³ in 2023 ³⁴. Net income stood at $9,963 million ³⁵ for 2025 ³⁶, compared to $8,995 million ³⁷ in 2024 ³⁸ and $4,795 million ³⁹ in 2023 ⁴⁰. Diluted earnings per share (EPS) reached $7.86 ⁴¹ in 2025 ⁴², an increase from $7.09 ⁴³ in 2024 ⁴⁴ and $3.77 ⁴⁵ in 2023 ⁴⁶. Adjusted EPS was $9.82 ⁴⁷ for 2025 ⁴⁸, $9.00 ⁴⁹ for 2024 ⁵⁰, and $8.70 ⁵¹ for 2023 ⁵². Cash flow from operations was strong at $19,000 million ⁵³ in 2025 ⁵⁴, $16,700 million ⁵⁵ in 2024 ⁵⁶, and $16,100 million ⁵⁷ in 2023 ⁵⁸. Net capital expenditures were $5,100 million ⁵⁹ in 2025 ⁶⁰, $4,600 million ⁶¹ in 2024 ⁶², and $4,500 million ⁶³ in 2023 ⁶⁴, while cash available for debt repayment was $13,900 million ⁶⁵ in 2025 ⁶⁶, $12,100 million ⁶⁷ in 2024 ⁶⁸, and $11,600 million ⁶⁹ in 2023 ⁷⁰.

CVS Health has indicated certain strategic changes impacting its future operations, including its exit from individual public health insurance exchanges, effective January 2026 ¹⁰. The company anticipates creating sustainable shareholder value through best-in-class execution, transforming consumer experiences, becoming a partner of choice, and leveraging enterprise capabilities, all supported by innovation and capital stewardship. Forward-looking statements from management indicate future considerations for the company's investment portfolio, operating results, cash flows, financial condition, and corporate strategy. This encompasses various aspects such as future revenue, operating income, adjusted operating income, earnings per share, adjusted earnings per share, and trends within its Health Care Benefits, Health Services, and Pharmacy & Consumer Wellness segments, including medical cost trends, medical membership, and medical benefit ratios. Other forward-looking considerations include incremental investment spending, interest expense, effective tax rate, weighted-average share count, cash flow from operations, net capital expenditures, and cash available for debt repayment. The company also monitors matters related to possible acquisitions, joint ventures, or investments, including the timing and likelihood of regulatory approvals, integration synergies, and associated risks and costs. Furthermore, enterprise modernization, transformation initiatives, leverage ratios, cash available for enhancing shareholder value, inventory management metrics, debt ratings, customer and client retention, store development, new product development, and the impact of industry and regulatory developments are all factors under consideration for future performance. The company’s Series A Junior Subordinated Notes, with a 7% ⁷¹ coupon due March 2055 ⁷², are callable on March 10, 2030 ⁷³. Additionally, the Series B Junior Subordinated Notes, bearing a 6.75% ⁷⁴ coupon due December 2054 ⁷⁵, are callable on December 10, 2034 ⁷⁶.

The company's forward-looking statements acknowledge that actual results could differ materially due to a number of significant risks and uncertainties, many of which are outside its control. A notable customer concentration risk exists with the U.S. Federal Government, which accounted for a substantial portion of total revenues, representing 29.8% ⁷⁷ in 2025 ⁷⁸, 29.3% ⁷⁹ in 2024 ⁸⁰, and 27.9% ⁸¹ in 2023 ⁸². Legal proceedings present ongoing risks, including those related to an opioid litigation settlement framework and the U.S. ex rel. Bassan et al. v. Omnicare Inc. and CVS Health Corp. matter, which Omnicare Inc. ⁸³ settled for $6 million ⁸⁴ with the U.S. Federal Government ⁸⁵ and certain states. Additionally, stockholder class action complaints regarding the acquisition of Aetna and Omnicare, as well as stockholder derivative litigation, contribute to the company's litigation landscape.

Management emphasizes a strategic focus on simplifying health care experiences, improving engagement, lowering costs, and delivering better health outcomes. The company's ambition is to be recognized as America's most trusted health care company, with a core purpose to simplify health care for individuals, families, and communities. This strategic direction is underpinned by values that prioritize care, purposeful innovation, accountability, and a commitment to safety and quality. Management expects to create sustainable shareholder value by achieving best-in-class execution, transforming consumer experiences, establishing itself as the partner of choice, and harnessing its enterprise capabilities through innovation and diligent capital stewardship.