UPDATE: CVS Health has just reported a staggering $3.99 billion net loss for the third quarter of 2025, despite revenue soaring to $102.87 billion, significantly exceeding analyst expectations. This urgent news comes as CVS grapples with a $5.7 billion goodwill impairment charge tied to its health care services segment, leading to a sharp decline in premarket shares by over 3%.
The latest earnings reveal a complex picture for CVS, which is navigating a turbulent financial landscape under new CEO David Joyner. Joyner, who took the helm following a challenging year under previous CEO Karen Lynch, is implementing aggressive strategies to revitalize the struggling drugstore chain. His efforts seem to be yielding results, with CVS shares rising more than 85% year-to-date.
In his first full year leading CVS, Joyner has announced an adjustment to the company’s fiscal 2025 earnings outlook, now expecting adjusted earnings per share to range between $6.55 and $6.65, a significant increase from previous estimates of $6.30 to $6.40. Joyner expressed optimism in an interview, stating, “I couldn’t be more happy about the fact that this is three quarters where we’ve had a beat and raise.”
Despite the upbeat revenue figures, CVS’s reported loss reflects ongoing challenges, particularly within its health care delivery reporting unit. The company has made strategic changes, including a decision to slow the growth of primary care clinics and close 16 locations of the primary care provider Oak Street Health. Joyner emphasized that this adjustment does not alter CVS’s commitment to value-based care.
The insurance division, which struggled last year, has shown improvement. The medical benefit ratio—a key profitability measure—decreased to 92.8% from 95.2%, indicating a better balance between premiums collected and medical expenses paid. This segment generated $35.99 billion in revenue for the quarter, exceeding expectations of $34.48 billion.
CVS’s pharmacy and consumer wellness division also thrived, reporting $36.21 billion in sales, up 11.7% year-over-year, aided by increased prescription volume, including acquisitions from Rite Aid. The health services segment, which encompasses Caremark, achieved $49.27 billion in revenue, up 11.6% from the previous year.
With these results, CVS is poised to close out the year with a renewed sense of direction, but the road ahead remains fraught with challenges. Analysts will closely monitor the company’s next moves and its ability to sustain this momentum in a competitive market.
As CVS Health continues to navigate these turbulent waters, industry observers are watching intently for further developments. The next quarter will be critical as the company works to stabilize and enhance its performance amid fluctuating health care costs and evolving market conditions.
