- Outlines a strategy to deliver best‑in‑class execution, transform consumer experiences, become the partner of choice, and harness unique enterprise capabilities.
- Updates full‑year 2025 financial guidance and provides full‑year 2026 outlook.
- Commits to a mid‑teens Adjusted EPS compound annual growth rate through 2028.
- Announces a new platform that reimagines health care through improved engagement and simplified experiences.
HARTFORD, Conn., Dec. 9, 2025 /PRNewswire/ — At its 2025 Investor Day, CVS Health® (NYSE: CVS) unveiled a comprehensive growth plan designed to leverage its diversified portfolio—Aetna, CVS Caremark, CVS Pharmacy and Health Care Delivery—to address systemic challenges in the U.S. health‑care ecosystem. With more than 300,000 employees, CVS Health aims to simplify care delivery and improve outcomes at a scale unmatched by any single competitor.
“CVS Health is committed to being the most trusted health‑care company in America,” said President and CEO David Joyner. “We are executing with discipline, strengthening our core businesses and delivering meaningful progress across the enterprise. Our focus is a simpler, more connected, and more affordable experience for consumers, providers, and payers alike.”
CVS Health’s reach is extensive: it serves roughly 185 million consumers through over 9,000 retail pharmacies, a robust omnichannel platform, and a network that places 85 percent of Americans within a 10‑mile radius of a store. The company also maintains 1.5 million provider relationships and more than 60 health‑plan clients, positioning it as a central hub in the health‑care value chain.
Joyner, who has been with the company for nearly four decades, emphasized the long‑term horizon: “Our obligation is to ensure CVS Health is best positioned to do the most good for the most people for the next 40 years.”
Financial Outlook: 2025 Guidance Update and 2026 Outlook
During Investor Day, CVS Health refreshed its 2025 guidance and introduced forward‑looking targets for 2026, alongside a multi‑year earnings growth framework predicated on unlocking value across its four operating segments:
- Accelerated earnings growth as Aetna returns to target margins.
- Margin expansion and customer retention in CVS Caremark.
- Steady earnings contribution from CVS Pharmacy, the consumer “front door” to health care.
- Path to breakeven and eventual profitability in the Health Care Delivery segment.
“We are closing out 2025 with meaningful momentum across our businesses and expect another year of strong earnings growth in 2026,” said Executive Vice President and CFO Brian Newman. “Our guidance philosophy is centered on credible expectations with upside potential, reflecting the power of a diversified enterprise in a rapidly evolving industry.”
2025 Full‑Year Financial Guidance (Updated)
- Total revenues: at least $400.0 billion (up from $397.3 billion).
- GAAP operating income: $4.37 billion to $4.54 billion (up from $4.29 billion‑$4.46 billion).
- Adjusted operating income: $14.22 billion to $14.39 billion (up from $14.14 billion‑$14.31 billion).
- GAAP diluted EPS: $(0.32) to $(0.22) (up from $(0.34) to $(0.24)).
- Adjusted EPS: $6.60 to $6.70 (up from $6.55 to $6.65).
- Cash flow from operations: $7.5 billion to $8.0 billion (confirmed).
2026 Full‑Year Financial Guidance (Initial)
- Total revenues: at least $400.0 billion.
- GAAP operating income: $13.26 billion to $13.60 billion.
- Adjusted operating income: $15.07 billion to $15.41 billion.
- GAAP diluted EPS: $5.94 to $6.14.
- Adjusted EPS: $7.00 to $7.20.
- Cash flow from operations: at least $10.0 billion.
Mid‑Teens Adjusted EPS CAGR Through 2028
CVS Health targets a mid‑teens compound annual growth rate for Adjusted EPS through 2028, driven by continued performance in its core businesses and ongoing investment in technology and innovation.
Technology Play: Open Consumer Engagement Platform
CVS Health announced the launch of an “Engagement as a Service” platform that stitches together consumer experiences across its ecosystem and with external partners. The platform is built as an AI‑native solution, leveraging existing machine‑learning models in Aetna, CVS Caremark, CVS Pharmacy, and Health Care Delivery to enable proactive engagement, personalize product offerings, and reduce administrative costs.
Key benefits for the ecosystem include:
- A unified digital experience anchored in a single consumer app.
- AI‑driven insights that improve care coordination and reduce readmissions.
- New revenue streams from third‑party service integration and data monetization.
Industry analysts see this move as a strategic response to the growing demand for seamless, data‑driven health‑care interactions. By positioning the platform as an open marketplace, CVS Health can attract fintech, telehealth, and pharmacy‑tech partners, expanding its addressable market beyond traditional retail and pharmacy benefit management.
Strategic Implications and Risks
Competitive Landscape. The platform pits CVS Health against emerging digital health entrants (e.g., Oscar Health, Walgreens Boots Alliance’s digital initiatives) as well as established tech giants (Amazon Pharmacy, Apple Health). Success will hinge on CVS’s ability to integrate disparate data silos, protect privacy, and deliver tangible cost savings.
Regulatory Environment. Ongoing litigation—highlighted by recent False Claims Act settlements and opioid‑related charges—continues to pose financial risk. CVS’s disclosed litigation charges of $387 million (Q1 2025) and $542 million (Q2 2025) underscore the importance of robust compliance frameworks. The company’s 2025 and 2026 guidance already incorporates expected impact from such liabilities.
Capital Allocation. The firm’s plan to close underperforming retail locations, optimize office real estate, and streamline its workforce aims to improve operating leverage. The projected breakeven trajectory for Health Care Delivery signals a shift from growth‑at‑all‑costs to sustainable profitability in a capital‑intensive segment.
Technology Investment. AI and data analytics are central to the new engagement platform. CVS Health’s prior AI deployments have generated efficiency gains in claims processing and member outreach. Scaling these capabilities across the consumer‑facing app could unlock cross‑sell opportunities for insurance products, pharmacy services, and telehealth visits.
Guidance Reconciliation (Non‑GAAP Measures)
The company uses Adjusted Operating Income and Adjusted EPS to reflect underlying performance, stripping out items such as intangible‑asset amortization, acquisition integration costs, goodwill impairments, clinic‑closure charges, opioid litigation accruals, real‑estate optimization costs, legacy litigation, losses on accountable‑care assets, restructuring charges, deconsolidation gains, early debt‑extinguishment gains, and related tax effects.
| Year Ending December 31 | ||||||||
| 2026 E | 2025 E | 2024 Actual | ||||||
| Operating income (GAAP) | $13,260 million | $13,600 million | $4,365 million | $4,535 million | $8,516 million | |||
| Adjusted operating income | $15,070 million | $15,410 million | $14,220 million | $14,390 million | $11,976 million | |||
| Adjusted EPS (diluted) | $7.00 | $7.20 | $6.60 | $6.70 | $5.42 | |||
| Weighted average diluted shares (millions) | 1,285 | 1,285 | 1,267 | 1,267 | 1,262 | |||
The table reflects projected adjustments, including a $387 million litigation charge related to False Claims Act findings in Q1 2025 and a $542 million charge in Q2 2025. Additional $291 million litigation expense was recorded in Q2 2025 for pharmacy‑benefit management reporting issues.
Conclusion
CVS Health’s refreshed guidance and AI‑centric engagement platform signal a strategic pivot toward integrated, technology‑enabled health services. By monetizing its extensive consumer footprint and deep data assets, the company aims to sustain mid‑teens EPS growth while navigating regulatory headwinds and intensifying competition. Investors will be watching how quickly the new platform can generate incremental revenue and whether the Health Care Delivery segment can meet its profitability targets.
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