CVS Health reported strong revenue growth for both the fourth quarter and full year 2025, driven by increases across all operating segments. However, profitability faced headwinds, with a significant decrease in GAAP operating income for the full year due to substantial goodwill impairment and litigation charges, alongside a decline in adjusted EPS for the quarter.
Total revenues increased 8.2% in Q4 2025 to $105.7 billion and 7.8% for the full year 2025 to a record $402.1 billion, driven by growth across all operating segments.
positiveHealth Services segment adjusted operating income increased 9.2% in Q4 2025, driven by improved purchasing economics.
positivePharmacy & Consumer Wellness segment adjusted operating income increased 8.7% in Q4 2025, driven by increased prescription volume and favorable drug mix.
positiveAetna® is improving the experience for health care professionals and patients, approving over 95% of eligible prior authorizations within 24 hours.
neutralGAAP operating income decreased 10.8% in Q4 2025 and 45.3% for the full year 2025, primarily due to a $5.7 billion goodwill impairment charge and approximately $1.2 billion of legacy litigation charges in the full year.
negativeAdjusted EPS decreased by $0.10 to $1.09 in Q4 2025 compared to the prior year, primarily due to a decline in adjusted operating income in the Health Care Benefits segment.
negativeHealth Care Benefits segment adjusted operating loss increased by $237 million in Q4 2025, driven by changes in Medicare Part D seasonality due to the IRA and unfavorable premium deficiency reserves.
negativeHealth Services segment adjusted operating income decreased 1.3% for the full year 2025, primarily driven by continued pharmacy client price improvements.
attentionMedical membership as of December 31, 2025, decreased 504,000 members compared with December 31, 2024, reflecting declines in individual exchange and Government product lines.
negativeUpdated cash flow from operations guidance for FY2026 to at least $9.0 billion from at least $10.0 billion.
negativeMargin expansion indicates improving profitability and operational efficiency. Measured in basis points (bps): 100 bps = 1.0%.
| Segment | Current | Prior Yr | YoY | % Total |
|---|---|---|---|---|
Health Care Benefits | N/A | — | — | — |
Health Services | N/A | — | — | — |
Pharmacy & Consumer Wellness | N/A | — | — | — |
| Total Revenue | $0.00M | — | — | 100.0% |
Segment performance shows business unit health and growth drivers.
Forward-looking guidance is subject to change and does not constitute a guarantee. Actual results may differ materially from these estimates.
Special items are non-recurring events that may distort period-over-period comparisons. Analysts typically adjust for these when calculating normalized earnings.
Our fourth quarter and full-year results demonstrate the progress we are making in transforming the health care experience with our unique collection of businesses.
From lowering drug prices, to improving navigation of health care, to being the front door of care across our country, we are well positioned to achieve our ambition to be the most trusted health care company in America.
CVS Pharmacy® successfully completed the transition to cost-based reimbursement across its Commercial, Third-Party Discount, Medicare and Medicaid businesses.
Commentary excerpts from earnings call transcripts provide management's perspective on performance, strategy, and outlook. Always review full transcripts for complete context.
Operational metrics provide insight into business drivers and customer engagement beyond traditional financial measures.