CVS Health Stock Rises After Company Beats Estimates
- January 26, 2025

Key Takeaways
- CVS Health reported better-than-expected quarterly results, and the new CEO made executive changes. The news lifted the stock Wednesday.
- Revenue was lifted by jumps in sales at the firm’s Pharmacy & Wellness and Health Care Benefits segments.
- CVS also shook up its executive lineup, adding former UnitedHealth Group executive Steve Nelson to run the Aetna insurance division.
CVS Health ( CVS ) shares surged after the pharmacy chain and healthcare company posted better-than-expected results and new CEO David Joyner made leadership changes as he moves to shake up the struggling firm.
On Wednesday, CVS reported third quarter earnings per share (EPS) of $1.09, with revenue rising 6.3% to $95.4 billion. Both revenue and EPS exceeded estimates.
Despite today’s gains of about 10%, shares of CVS Health have lost about a fifth of their value this year.
Revenue was boosted by the Pharmacy & Wellness division, which saw sales up 12% to $32.4 billion, aided by higher prescription volume, Sales at the Health Care Benefits segment advanced some 25% to $33 billion on growth in Medicare and commercial product lines.
The company said Health Services unit revenue dropped 5.9%, chiefly because of the loss of a large client and continued pharmacy client price improvements. Reuters in January reported that Tyson Foods ( TSN ) replaced CVS Health with Rightway to manage employee drug benefits.
Joyner took over as CEO last month . CVS in a separate statement said former UnitedHealth Group ( UNH ) executive Steve Nelson will become head of its Aetna insurance arm, and Prem Shah, the current chief pharmacy officer and president of the Pharmacy & Consumer Wellness division, will become group president.
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