CVS Health Corp

Adjusted Earnings and Guidance: CVS Health reported Q4 2024 adjusted earnings per share of $1.19 and adjusted operating income of $2.7 billion. For full year 2025, the initial guidance is set between $5.75 and $6.00 per share, representing a growth of approximately 10% at the low end compared to 2024, which had favorable reserve developments contributing about $0.18 to EPS.

Aetna Business Recovery: The company is focusing on recovering its Aetna segment, particularly Medicare Advantage, which has faced operational challenges. A planned high single-digit percentage decline in Medicare Advantage membership is expected in 2025 as part of measures to improve profitability and restore target margins of 3%-5%.

Healthcare Cost Pressures: Rising healthcare costs primarily driven by increased utilization, higher provider costs, labor shortages, and steep pharmaceutical price hikes remain a significant concern. The adjusted medical benefit ratio increased to 94.8%, reflecting pressures particularly within the Aetna segment.