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CVS Health on Thursday reported second-quarter earnings and revenue that topped estimates and raised its adjusted profit outlook, as it sees strength in its retail pharmacy business and some improvement in its insurance unit.
Shares of the retail drugstore chain jumped more than 9% in premarket trading Thursday.
The company now expects fiscal 2025 adjusted earnings of $6.30 to $6.40 per share, up from previous guidance of $6 to $6.20 per share. CVS also cut its GAAP earnings guidance, without disclosing additional details.
In an interview, CVS CEO David Joyner said the quarterly beat and guidance hike is in part “a tribute to the work and the effort underway within Aetna,” the company’s insurer. He was referring to a “multi-year recovery effort” at Aetna, which has been grappling with higher medical costs in privately run Medicare plans like the rest of the insurance industry.
