Aetna’s Strong 1Q Performance Helps CVS Increase Earnings Guidance
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May 02, 2025
CVS Health Corp. beat analysts’ expectations during the first quarter thanks in large part to the Aetna health insurance subsidiary, which has performed better this year compared with a year ago when the company had high utilization and mispriced many of its Medicare Advantage plans. While Aetna has continued to struggle in the Affordable Care Act exchange business and plans to exit the segment in 2026, it has modestly improved in the other lines of business.
As such, CVS increased its adjusted earnings per share (EPS) guidance to $6.00 to $6.25 this year, up from its previous guidance of $5.75 to $6.00 and higher than last year’s $5.42. Thomas Cowhey, CVS’s chief financial officer, said during the company’s first quarter earnings call on May 1 that the updated guidance “incorporates our first quarter performance while maintaining a respectful view on medical cost trend and a prudent outlook on various macro factors for the remainder of the year.”
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