CVS Health delivered a robust performance for the fourth quarter of 2025, reporting total revenue of $105.7 billion, an 8.2% increase year-over-year. For the full year 2025, revenue reached a record $402.1 billion, up 7.8%. Fourth quarter Adjusted EPS was $1.09, while full-year Adjusted EPS stood at $6.75, an increase from $5.42 in 2024. Growth was driven by strong prescription volume in the Pharmacy and Consumer Wellness segment and higher premiums in the Health Care Benefits unit. However, GAAP results were impacted by a $5.7 billion goodwill impairment charge related to the Health Care Delivery reporting unit and approximately $1.2 billion in legacy litigation charges recorded during the year.
Note: CVS Health's FY'25 ended on December 31, 2025.
CVS Pharmacy successfully completed its transition to a cost-based reimbursement model across its commercial and government businesses in late 2025, aimed at increasing pricing transparency. Additionally, the company launched its "Engagement as a Service" platform at its December 2025 Investor Day. This open consumer engagement platform integrates AI-driven solutions across Aetna, Caremark, and retail pharmacy to drive operational efficiency and personalized member experiences.
Below are key drivers of CVS Health's value that present opportunities for upside or downside to the current Trefis price estimate:
For additional details, select a driver above or a division from the interactive Trefis split for CVS Health at the top of the page.
CVS Health operates as an integrated healthcare giant, combining one of the nation's largest pharmacy benefit managers (CVS Caremark), a massive retail pharmacy footprint, and a leading health insurer (Aetna). The company's strategy focuses on leveraging this ecosystem to lower the total cost of care through personalized engagement, value-based care models, and a diversified revenue stream that spans insurance premiums, pharmacy services, and retail health.
CVS Health's integrated model creates a unique competitive moat by capturing value across the entire patient journey.
CVS connects with approximately 185 million consumers through its various businesses. With nearly 10,000 retail locations, it serves as the "front door" to healthcare for many Americans, providing a physical infrastructure that competitors like pure-play insurers or digital pharmacies cannot easily replicate.
The ownership of Aetna, Caremark, and Oak Street Health allows CVS to align incentives across the payer, provider, and pharmacy. This ecosystem enables "pull-through" volume, where Aetna members utilize CVS pharmacies and clinics, allowing the company to capture multiple margins on a single patient interaction while improving health outcomes through data sharing.
The industry is moving toward greater transparency in drug pricing. CVS is leading this shift with its CostVantage and TrueCost models, which move away from complex rebate-driven pricing toward a simpler, cost-plus structure. This helps stabilize pharmacy margins and mitigates the impact of PBM regulatory scrutiny.
A major macro trend is the tightening of federal reimbursement for Medicare Advantage plans. While near-flat rate increases for 2027 pose a challenge to the insurance sector, CVS's diversified model—incorporating retail and PBM services—provides a buffer against pure insurance volatility compared to peers like Humana.
CVS is aggressively deploying AI-driven solutions to automate prior authorizations and personalize consumer health navigation. By the end of 2026, the company expects over 80% of electronic prior authorizations to be completed in real-time, significantly reducing administrative costs and improving provider satisfaction.
