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Key Takeaways
- CVS Health shares climbed Tuesday after the health conglomerate raised its full-year outlook.
- The company also announced plans for a platform with AI features as part of its engagement strategy.
CVS wants investors to know it sees bigger profits ahead, and has new AI plans.
Shares of CVS Health (CVS) climbed about 2% Tuesday after the health conglomerate lifted its full-year forecast and outlined an AI strategy to drive higher engagement.
The parent of CVS Pharmacy, benefits manager CVS Caremark, and Aetna insurance said it now sees full-year adjusted earnings per share of $6.60 to $6.70, up from an earlier forecast of $6.55 to $6.65. It anticipates revenue of at least $400 billion compared to the previous outlook of at least $397.3 billion. For fiscal year 2026, CVS projected adjusted EPS of $5.94 to $6.14 on revenue of at least $400 billion.
The company pointed to strong earnings growth at Aetna and new customers of its pharmacy-benefits business for the stronger outlook, among other things.
“We are closing out 2025 with meaningful momentum across our businesses and we expect another year of strong earnings growth in 2026,” said CFO Brian Newman.
Why This Matters for Investors
The stronger outlook from CVS could help boost confidence in the chain’s turnaround efforts under new CEO David Joyner, who assumed the job in October after a tough stretch marked by worries about rising medical costs, reduced foot traffic in stores, and competition.
During its investor day event Tuesday, CVS also outlined a new engagement plan, which includes building a platform with AI capabilities. The move will “bring together the various components of health care into one easy to use platform, anchored in a singular app,” CVS said.
With Tuesday’s gains, shares of CVS Health have added about three-quarters of their value this year, though they remain well off their highs in 2022.
