CVS Health lifts full-year earnings guidance

(Sharecast News) - Shares in CVS Health rallied in pre-market trade on Wednesday after the US health insurance provider and pharmacy chain owner lifted its full-year earnings guidance as it posted better-than-expected earnings for the first quarter.

In the three months to the end of March, total revenue rose 6.2% on the same period a year earlier to $100.4bn, with growth across all operating segments.

Adjusted earnings per share came in at $2.57, up from $2.25 and ahead of consensus expectations of $2.20. CVS said this was mainly due to improved adjusted operating income in the health care benefits segment, reflecting continued execution on the health care benefits segment margin recovery plan.

Net income rose to $2.96bn from $1.78 in the first quarter of 2025.

The company said it now expects GAAP diluted EPS for 2026 of between $6.24 and $6.44, up from previous guidance of $5.94 to $6.14. It also lifted its guidance for adjusted EPS, to between $7.30 and $7.50, from $7.00 to $7.20.

Cash flow from operations guidance was upped to at least $9.5bn from at least $9bn.

Chairman David Joyner said: "Our positive performance is driven by strong execution across our enterprise. We will continue to build momentum through delivering on our strategy and a steadfast focus on our purpose - to simplify health care one person, one family and one community at a time."

At 1245 BST, the shares were up 5.4% in pre-market trade at $85.05.