The pharmacy giant CVS Health sent Wall Street into a frenzy on May 1, 2025, as its stock surged nearly 9% in pre-market trading. The reason? A first-quarter performance that didn’t just meet analyst forecasts—it obliterated them. Investors, accustomed to the healthcare sector’s ups and downs, scrambled to buy in, pushing shares toward their highest opening since April 2024.
CVS reported adjusted earnings per share of $2.25 for the quarter ending March 31, 2025, blowing past the consensus estimate of $1.64. Revenue hit $94.6 billion, a 7% jump from the same period last year, and comfortably topped the $93 billion Wall Street had penciled in. The company’s Health Care Benefits segment, anchored by its Aetna insurance arm, showed particular strength, with improved Medicare metrics driving much of the upside. Cost-cutting measures and robust pharmacy sales also fueled the recovery, a stark contrast to last year’s sluggish performance in insurance and retail.
In a bold move, CVS raised its full-year adjusted earnings guidance to a range of $6.00 to $6.20 per share, up from its prior forecast of $5.75 to $6.00. But it wasn’t all rosy—management trimmed its GAAP earnings outlook to $4.23 to $4.43 per share, down from $4.58 to $4.83, citing one-time costs and restructuring charges. The company also announced it would exit the individual exchange business starting in 2026, a strategic pivot to refocus on core operations.
The earnings report, filed with the Securities and Exchange Commission on May 1, 2025, painted a picture of a company regaining its footing. Pharmacy same-store sales grew, driven by higher prescription volumes, while Aetna’s bundled prior authorization programs streamlined costs. These moves come as CVS navigates a tricky landscape—rising healthcare costs, regulatory scrutiny, and competition from online pharmacies like Amazon. Yet, for now, the market’s verdict is clear: CVS is delivering.
By the close of trading on May 1, 2025, shares were poised to settle around $71.50, a 7.2% gain from the previous day’s close. The company’s market cap, hovering near $90 billion, reflects renewed investor confidence. CVS employs approximately 300,000 people across its 9,000-plus retail locations and serves millions through its insurance and pharmacy benefit management arms.