CVS Health Corporation (CVS) Q4 2025 Financial Results Summary
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CVS Health Corporation (CVS) Q4 2025 Financial Results Summary
Release Date: February 10, 2026
CVS Health Corporation (NYSE: CVS) reported its financial results for the fourth quarter and full year ended December 31, 2025. Here is a summary of the key metrics and highlights from the report:
Fourth Quarter Highlights:
- Total Revenues: $105.7 billion, an increase of 8.2% compared to $97.7 billion in Q4 2024.
- GAAP Diluted EPS: $2.30, up 76.9% from $1.30 in Q4 2024.
- Adjusted EPS: $1.09, a decrease of 8.4% from $1.19 in Q4 2024.
Full-Year Highlights:
- Total Revenues: Reached a record high of $402.1 billion, up 7.8% from $372.8 billion in 2024.
- GAAP Diluted EPS: $1.39, down 62.0% from $3.66 in 2024.
- Adjusted EPS: $6.75, an increase of 24.6% compared to $5.42 in 2024.
- Generated cash flow from operations: $10.6 billion.
Operational Highlights:
- Completed transition to cost-based reimbursement for CVS Pharmacy® across various businesses.
- Aetna® improved efficiency, approving more than 95% of eligible prior authorizations within 24 hours.
- Caremark® experienced strong customer retention and wins, positioning for momentum into 2026.
2026 Full-Year Guidance:
- GAAP Diluted EPS: Guidance range of $5.94 to $6.14.
- Adjusted EPS: Guidance range of $7.00 to $7.20.
- Cash flow from operations: Guidance updated to at least $9.0 billion (previously at least $10.0 billion).
Detailed Financial Performance:
Three Months Ended December 31, 2025 vs. 2024:
- Total Revenues: Increased 8.2%: $105.7 billion vs. $97.7 billion.
- Operating Income: Decreased 10.8%, from $2.4 billion in Q4 2024 to $2.1 billion in Q4 2025.
- Adjusted Operating Income: Decreased 4.8%, from $2.7 billion in Q4 2024 to $2.6 billion in Q4 2025.
- Net Income: Increased 80.1%, from $1.6 billion in Q4 2024 to $2.9 billion in Q4 2025.
Year Ended December 31, 2025 vs. 2024:
- Total Revenues: Increased 7.8%: $402.1 billion vs. $372.8 billion.
- Operating Income: Decreased 45.3%, from $8.5 billion in 2024 to $4.7 billion in 2025, primarily due to a $5.7 billion goodwill impairment and $1.2 billion in litigation charges.
- Adjusted Operating Income: Increased 20.6%: $14.4 billion vs. $12.0 billion.
Segment Performance:
- Health Care Benefits Segment:
- Total Revenues: Increased 10.1% in Q4 and 9.7% for the year.
- Adjusted Operating Loss: Increased by $237 million, primarily due to seasonal changes in Medicare Part D.
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Medical Benefit Ratio (MBR): Remained stable at 94.8% in Q4.
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Health Services Segment:
- Total Revenues: Increased 9.0% in Q4 and 9.7% for the year.
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Adjusted Operating Income: Increased 9.2% in Q4 but decreased 1.3% for the year reflecting cost pressures.
-
Pharmacy & Consumer Wellness Segment:
- Total Revenues: Increased 12.4% in Q4 and 11.9% for the year.
- Prescriptions Filled: Increased 6.3% in Q4 and 5.4% for the year.
Financial Returns:
- CVS Health declared dividends of $3.397 billion for the year.
- The report noted a significant increase in interest expenses, with a year-over-year rise of 5.4%.
This summary provides insight into CVS Health’s operational performance, segment growth, and future guidance, affirming its position within the healthcare sector.
| In millions, except per share amounts | 2025 | 2024 | 2025 | 2024 |
|---|---|---|---|---|
| Revenues: | ||||
| Products | 67,042 | 61,911 | 249,908 | 231,521 |
| Premiums | 34,017 | 30,913 | 134,751 | 122,896 |
| Services | 4,040 | 4,131 | 15,175 | 16,239 |
| Net investment income | 594 | 755 | 2,233 | 2,153 |
| Total revenues | 105,693 | 97,710 | 402,067 | 372,809 |
| Operating costs: | ||||
| Cost of products sold | 59,060 | 55,268 | 221,167 | 206,287 |
| Health care costs | 33,066 | 29,543 | 125,538 | 115,121 |
| Operating expenses | 11,455 | 10,521 | 44,977 | 41,706 |
| Goodwill impairment | — | — | 5,725 | — |
| Restructuring charges | — | 10 | — | 1,179 |
| Total operating costs | 103,581 | 95,342 | 397,407 | 364,293 |
| Operating income | 2,112 | 2,368 | 4,660 | 8,516 |
| Interest expense | -787 | -758 | -3,119 | -2,958 |
| Gain on early extinguishment of debt | — | 491 | — | 491 |
| Gain on deconsolidation of subsidiary | — | — | 483 | — |
| Other income | 29 | 25 | 112 | 99 |
| Income before income tax provision | 1,354 | 2,126 | 2,136 | 6,148 |
| Income tax provision (benefit) | -1,569 | 503 | 408 | 1,562 |
| Net income | 2,923 | 1,623 | 1,728 | 4,586 |
| Net loss attributable to noncontrolling interests | 20 | 21 | 40 | 28 |
| Net income attributable to CVS Health | 2,943 | 1,644 | 1,768 | 4,614 |
| Net income per share attributable to CVS Health: | ||||
| Basic | 2.32 | 1.31 | 1.40 | 3.67 |
| Diluted | 2.30 | 1.30 | 1.39 | 3.66 |
| Weighted average shares outstanding: | ||||
| Basic | 1,270 | 1,259 | 1,267 | 1,259 |
| Diluted | 1,277 | 1,261 | 1,271 | 1,262 |
| In millions | At December 31, 2025 | At December 31, 2024 |
|---|---|---|
| Cash and cash equivalents | 8,453 | 8,586 |
| Investments | 2,145 | 2,407 |
| Accounts receivable, net | 39,779 | 36,469 |
| Inventories | 19,246 | 18,107 |
| Other current assets | 5,091 | 3,076 |
| Total current assets | 74,714 | 68,645 |
| Long-term investments | 32,669 | 28,934 |
| Property and equipment, net | 13,083 | 12,993 |
| Operating lease right-of-use assets | 14,973 | 15,944 |
| Goodwill | 85,478 | 91,272 |
| Intangible assets, net | 25,508 | 27,323 |
| Separate accounts assets | 1,994 | 3,311 |
| Other assets | 5,119 | 4,793 |
| Total assets | 253,538 | 253,215 |
| Liabilities: | ||
| Accounts payable | 17,641 | 15,892 |
| Pharmacy claims and discounts payable | 26,344 | 24,166 |
| Health care costs payable | 15,399 | 15,064 |
| Accrued expenses and other current liabilities | 22,387 | 20,810 |
| Other insurance liabilities | 1,116 | 1,183 |
| Current portion of operating lease liabilities | 1,737 | 1,751 |
| Short-term debt | — | 2,119 |
| Current portion of long-term debt | 4,068 | 3,624 |
| Total current liabilities | 88,692 | 84,609 |
| Long-term operating lease liabilities | 13,643 | 14,899 |
| Long-term debt | 60,502 | 60,527 |
| Deferred income taxes | 3,832 | 3,806 |
| Separate accounts liabilities | 1,994 | 3,311 |
| Other long-term insurance liabilities | 4,716 | 4,902 |
| Other long-term liabilities | 4,777 | 5,431 |
| Total liabilities | 178,156 | 177,485 |
| Shareholders’ equity: | ||
| Preferred stock | — | — |
| Common stock and capital surplus | 50,402 | 49,661 |
| Treasury stock | -36,790 | -36,818 |
| Retained earnings | 61,196 | 62,837 |
| Accumulated other comprehensive income (loss) | 406 | -120 |
| Total CVS Health shareholders’ equity | 75,214 | 75,560 |
| Noncontrolling interests | 168 | 170 |
| Total shareholders’ equity | 75,382 | 75,730 |
| Total liabilities and shareholders’ equity | 253,538 | 253,215 |