By Kelly Cloonan
CVS expects its turnaround efforts to pay off as it raised its full-year outlook and expects that momentum to carry over into 2026.
The company on Tuesday also said it is offering a new artificial intelligence-driven platform that aims to bring its various services-including its health insurance, pharmacy and healthcare delivery offerings-into one app.
The stock rose 5% to $80.39. Shares are up 79% this year.
The healthcare giant has been working to strengthen its core businesses and is looking to simplify the health care experience it offers going forward, Chief Executive David Joyner said.
Joyner said the company has made a series of tough decisions in recent months, including exiting its Accountable Care Organization business and slowing the growth of its clinics. At the same time, the company was investing for future growth, particularly in its technology, which it sees boosting growth going forward, he said.
"We righted the ship, charted a new path forward, and [we are] now entering parts of the market that either others can't and/or simply are not equipped to be able to compete," Joyner said during the company's investor day.
CVS now expects revenue of at least $400 billion for 2025, up from its prior view of at least $397.3 billion.
The company now expects adjusted earnings per share of $6.60 to $6.70, the midpoint of which is up from a previous range of $6.55 to $6.65.
It now forecasts a loss per share of 22 cents to 32 cents compared with its prior outlook for a loss of 24 cents to 34 cents.
Chief Financial Officer Brian Newman said CVS is closing out the year with meaningful momentum across its business, and expects earnings to grow again in 2026.
For 2026, CVS projected revenue of at least $400 billion, compared with analyst estimates of $420.3 billion, according to FactSet.
The company forecasts adjusted earnings per share of $7 to $7.20, compared with analyst projections of $7.17.
It expects earnings per share of $5.94 to $6.14, ahead of analyst estimates of $5.45.
Longer term, CVS expects adjusted earnings per share to grow at a mid-teens rate on average through 2028.
The company is also offering an AI-driven platform that combines services across its entities and industry partners.
The platform is part of the company's aims to simplify healthcare for consumers, health care professionals and payors, and builds on the existing AI solutions currently offered by Aetna and CVS's Caremark, pharmacy and health care delivery businesses.
Write to Kelly Cloonan at kelly.cloonan@wsj.com
(END) Dow Jones Newswires
December 09, 2025 10:00 ET (15:00 GMT)
Copyright (c) 2025 Dow Jones & Company, Inc.
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