CVS Health Corporation (CVS) reports earnings

The report was filed on February 12, 2025

We may earn a commission from links on this page.
In This Story

CVS Health Corporation (CVS-2.48%) has submitted its Form 10-K filing for the fiscal year ended December 31, 2024.

The filing reveals total revenues of $372.8 billion, a 4.2% increase from the previous year, driven by growth in the Health Care Benefits and Pharmacy & Consumer Wellness segments.

Operating income decreased by $5.2 billion, or 38.0%, primarily due to increased medical costs and restructuring charges.

Advertisement

The Health Care Benefits segment reported revenues of $130.7 billion, up 23.7%, with a medical benefit ratio of 92.5%, reflecting increased utilization.

Advertisement

The Health Services segment saw a revenue decrease of 7.1% to $173.6 billion, impacted by the loss of a large client and pharmacy client price improvements.

Advertisement

Pharmacy & Consumer Wellness segment revenues increased 6.6% to $124.5 billion, driven by increased prescription volume and pharmacy drug mix.

The Company reported a net income of $4.6 billion, down 44.7% from the prior year, with an effective tax rate of 25.4%.

Advertisement

CVS Health anticipates continued challenges in 2025, including elevated Medicare utilization and Medicaid cost pressures.

The Company maintains a strong liquidity position with $8.6 billion in cash and cash equivalents, and expects to meet its future cash requirements through operating cash flows and available credit facilities.

Advertisement

This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the CVS Health Corporation annual 10-K report dated February 12, 2025. To report an error, please email earnings@qz.com.