CVS Health shares surged 5.33% in pre-market trading after the company reported quarterly results that significantly exceeded analyst expectations and lifted its full-year outlook.
The healthcare giant posted second-quarter revenue of $106.1 billion, handily beating the consensus estimate of $100.1 billion. Adjusted earnings per share came in at $2.58, far above the $1.85 Wall Street had projected. The company's medical benefit ratio improved to 87.4%, notably better than the 90.03% estimate, indicating stronger cost management.
CVS also raised its full-year adjusted EPS guidance to a range of $7.90 to $8.10, surpassing the $7.45 consensus. Investors welcomed the upgraded forecast alongside strategic announcements, including a collaboration with Eli Lilly to provide transparent pricing for Zepbound and Foundayo patients, and an expansion of its direct-to-consumer weight management offerings with $29 MinuteClinic virtual visits for GLP-1 medications. These moves reinforced confidence in the company's growth trajectory and competitive positioning in the healthcare services market.