CVS Health Corporation is a leading health solutions company that operates across four main segments: Health Care Benefits, Health Services, Pharmacy & Consumer Wellness, and Corporate/Other . The company offers a wide range of health insurance products and services, pharmacy benefit management solutions, and retail pharmacy operations . CVS Health leverages its integrated model to enhance care delivery, improve health outcomes, and reduce health care costs .
- Pharmacy & Consumer Wellness - Operates retail pharmacy services, long-term care pharmacy services, specialty and mail order pharmacy offerings, and front store sales, which include health and wellness products and general merchandise .
- Health Care Benefits - Offers health insurance products and services, including medical, pharmacy, dental, and behavioral health plans, as well as Medicare Advantage and Medicaid management services .
- Health Services - Provides pharmacy benefit management solutions and health care services through medical clinics, virtual platforms, and home-based care, supported by acquisitions like Signify Health and Oak Street Health .
- Corporate/Other - Includes management and administrative expenses and products for which the company no longer solicits new customers .
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| Name | Position | External Roles | Short Bio | |
|---|---|---|---|---|
Karen S. Lynch ExecutiveBoard | President and CEO | None | Karen Lynch has been CEO since February 2021, leading CVS's transformation into a consumer-centric healthcare company. | |
J. David Joyner Executive | President and CEO | Advisory Council Member, Rawls College of Business, Texas Tech University | Appointed CEO in October 2024; previously EVP and President of Pharmacy Services. | |
Prem S. Shah Executive | EVP and Group President | None | Oversees CVS Caremark, CVS Pharmacy, and healthcare delivery businesses; joined CVS in 2013. | |
Samrat S. Khichi Executive | EVP, Chief Policy Officer, and General Counsel | None | Joined CVS in February 2023; oversees public policy, compliance, and legal functions, and supported major acquisitions. | |
Steve Nelson Executive | EVP and President of Aetna | None | Former CEO of UnitedHealthcare; leads Aetna's operations and strategy. | |
Thomas F. Cowhey Executive | EVP and CFO | None | Appointed CFO in January 2024 after serving as interim CFO; oversees financial strategy and operations. | |
Tilak Mandadi Executive | EVP, Chief Digital, Data, Analytics, and Technology Officer | None | Leads CVS's digital transformation, driving innovation and customer engagement; joined in July 2022. | |
Alecia A. DeCoudreaux Board | Director | Lead Independent Trustee, Parnassus Funds | Former President of Mills College; brings pharmaceutical and corporate governance expertise. | |
Anne M. Finucane Board | Director | Chair, Rubicon Carbon; Senior Advisor, TPG Climate Rise Fund; Director, Williams Sonoma | Former Vice Chair at Bank of America; recognized for ESG leadership and corporate strategy expertise. | |
C. David Brown II Board | Director | Partner, Nelson Mullins Riley & Scarborough LLP | Legal expert with extensive healthcare governance experience; joined CVS Board in 2007. | |
Doug Shulman Board | Director | Chairman and CEO, OneMain Holdings; Board Member, Carnegie Foundation for the Advancement of Teaching | Former IRS Commissioner; brings financial and regulatory expertise. | |
Fernando Aguirre Board | Director | Director, Barry Callebaut AG; Director, Synchrony Financial | Former CEO of Chiquita Brands; brings global business and brand management expertise. | |
Guy Sansone Board | Director | Chairman and CEO, H2 Health; Lead Independent Director, Pediatrix Medical Group; Board Member, ChenMed | Healthcare advisor and investor with over 30 years of experience in strategy and operations. | |
J. Scott Kirby Board | Director | CEO, United Airlines; Chairman, Star Alliance Chief Executive Board | CEO of United Airlines; brings expertise in marketing, sales, and network planning. | |
Jean-Pierre Millon Board | Director | None | Former CEO of PCS Health Systems; brings pharmacy benefit management and pharmaceutical expertise. | |
Jeffrey R. Balser Board | Director | President and CEO, Vanderbilt University Medical Center; Dean, Vanderbilt University School of Medicine | Brings expertise in healthcare delivery, personalized medicine, and financial oversight. | |
Larry Robbins Board | Director | CEO, Glenview Capital Management; Lead Independent Director, Butterfly Network | Founder of Glenview Capital; brings extensive healthcare investment expertise. | |
Leslie Norwalk Board | Director | Board Member, Arvinas, ModivCare, Neurocrine Biosciences, Globus Medical | Former Acting Administrator of CMS; brings healthcare policy and regulatory expertise. | |
Mary L. Schapiro Board | Director | Director, Morgan Stanley; Vice Chair, Bloomberg L.P. | Former SEC Chair; brings expertise in legal, regulatory compliance, and corporate governance. | |
Michael F. Mahoney Board | Director | Chairman, President, and CEO, Boston Scientific Corporation | CEO of Boston Scientific; brings healthcare innovation and operational expertise. | |
Nancy-Ann M. DeParle Board | Director | Managing Partner, Consonance Capital Partners; Director, HCA Healthcare; Trustee, Duke University | Former White House healthcare policy leader; brings over 25 years of healthcare sector experience. | |
Roger N. Farah Board | Executive Chair of the Board | Director, The Progressive Corporation | Former Chair of the Board; brings over 40 years of retail industry experience. |
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Given that your Health Care Benefits segment may show operating losses in 2024 after generating over $5.5 billion in adjusted operating income in 2023 , what are the primary factors driving this significant decline, and what specific measures are you implementing to return this business to profitability?
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You acknowledged miscalculations during the 2023 bid process for Medicare Advantage and individual exchange products, which significantly burdened Aetna's current results . How are you adjusting your bid and pricing strategies to prevent similar issues in future cycles, and what oversight mechanisms are being implemented to ensure accuracy?
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With the anticipated Medicare Advantage membership disenrollment of 5% to 10% due to benefit design changes and reduced supplemental benefits , how do you plan to maintain market competitiveness and member satisfaction while aiming for margin improvement?
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The individual exchange business is facing higher utilization and may result in negative margins approaching double digits . What are the underlying factors contributing to this underperformance, and what corrective actions are you taking to stabilize and improve this business line?
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Given that Aetna has been more acutely impacted by industry pressures than others , what structural or operational deficiencies have you identified, and how will the recent leadership changes and operational enhancements address these issues effectively?
Research analysts who have asked questions during CVS HEALTH earnings calls.
Andrew Mok
Barclays
4 questions for CVS
Elizabeth Anderson
Evercore ISI
4 questions for CVS
Justin Lake
Wolfe Research, LLC
4 questions for CVS
Lisa Gill
JPMorgan Chase & Co.
4 questions for CVS
Stephen Baxter
Wells Fargo & Company
3 questions for CVS
Ann Hynes
Mizuho Financial Group
2 questions for CVS
John Ransom
Raymond James
2 questions for CVS
Michael Cherny
Leerink Partners
2 questions for CVS
Brian Tanquilut
Jefferies
1 question for CVS
Charles Rhyee
TD Cowen
1 question for CVS
Eric Percher
Nephron Research
1 question for CVS
Erin Wilson Wright
Morgan Stanley
1 question for CVS
Erin Wright
Morgan Stanley
1 question for CVS
George Hill
Deutsche Bank
1 question for CVS
Joshua Raskin
Nephron Research
1 question for CVS
Stephen Baxter
Wells Fargo
1 question for CVS
Competitors mentioned in the company's latest 10K filing.
| Company | Description |
|---|---|
The retail pharmacy business is highly competitive, and the company competes with other drugstore chains, including this competitor, in the areas it serves. The competition is based on store location and convenience, customer service and satisfaction, product selection and variety, and price. | |
Rite Aid | The retail pharmacy business is highly competitive, and the company competes with other drugstore chains, including this competitor, in the areas it serves. The competition is based on store location and convenience, customer service and satisfaction, product selection and variety, and price. |
The company competes with discount retailers, including this competitor, in the areas it serves. The competition is based on store location and convenience, customer service and satisfaction, product selection and variety, and price. | |
The company competes with online retailers, including this competitor, in the areas it serves. The competition is based on store location and convenience, customer service and satisfaction, product selection and variety, and price. | |
PharMerica | The company's largest LTC pharmacy competitor nationally is this competitor. The company also competes with numerous local and regional institutional pharmacies, pharmacies owned by long-term care facilities, and local retail pharmacies. |
Prime Therapeutics | The Health Services segment has a significant number of competitors offering PBM services, including large, national PBM companies such as this competitor. |
MedImpact | The Health Services segment has a significant number of competitors offering PBM services, including large, national PBM companies such as this competitor. |
Express Scripts | The Health Services segment competes with PBMs owned by large national health plans, including the business of this competitor. |
OptumRx | The Health Services segment competes with PBMs owned by large national health plans, including the business of this competitor. |
Aledade | The company's primary care operations compete with large and medium-sized local and national providers of primary care services, such as this competitor. |
Centerwell | The company's primary care operations compete with large and medium-sized local and national providers of primary care services, such as this competitor. |
Collaborative Health Systems | The company's ACO operations compete with healthcare risk management providers, including this competitor, which operates nationally. |
The company's ACO operations compete with healthcare risk management providers, including this competitor, which operates nationally. | |
Vytalize Health | The company's ACO operations compete with healthcare risk management providers, including this competitor, which operates nationally. |
Stellar Health | The company's ACO operations compete with healthcare risk management providers, including this competitor, which operates nationally. |
Equality Health | The company's ACO operations compete with healthcare risk management providers, including this competitor, which is more geographically focused. |
Physicians of Southwest Washington | The company's ACO operations compete with healthcare risk management providers, including this competitor, which is more geographically focused. |
Matrix Medical Network | The company's IHE and related services operations compete with a wide variety of local and national providers of in-home, virtual, and in-person diagnostic and evaluative services, including pure-play companies whose principal business is providing health risk assessments and similar services, such as this competitor. |
Notable M&A activity and strategic investments in the past 3 years.
| Company | Year | Details |
|---|---|---|
Oak Street Health, Inc. | 2023 | Acquired by CVS Health on May 2, 2023 for $39.00 per share in cash, financed through $5.0 billion in borrowings and existing cash resources to expand its value-based primary care strategy; final purchase accounting adjustments were completed in Q2 2024. |
Signify Health, Inc. | 2023 | Acquisition completed in 2023; CVS Health acquired the company to leverage its expertise in health risk assessments, value-based care, and provider enablement services, with integration costs recorded in 2024 under the Corporate/Other segment. |
Recent press releases and 8-K filings for CVS.
- CVS Health’s Aetna will offer 2026 Medicare Advantage Prescription Drug plans in 43 states plus Washington, D.C., covering 57 million Medicare-eligible beneficiaries.
- All MA plans feature a $0 monthly premium in every available county and $0 copays for Tier 1 drugs, colonoscopies and mammograms at in-network providers.
- Supplemental benefits include dental, vision and hearing coverage with $0 routine exams, a SilverSneakers fitness membership, and an annual Healthy Home Visit at no cost.
- Special Needs Plans expand with C-SNPs in 18 states (16 new) and D-SNPs in 119 new counties, offering $0 condition-related copays and allowances on an Extra Benefits Card.
- Prescription drug benefits feature a $2,100 annual out-of-pocket maximum, $0 coverage on Tier 1–2 drugs for MAPD members, and an interest-free Medicare Prescription Payment Plan.
- Omnicare, a wholly owned indirect subsidiary of CVS Health, has voluntarily filed for Chapter 11 in the U.S. Bankruptcy Court for the Northern District of Texas to address litigation-related damages and broader industry challenges.
- The company secured $110 million of debtor-in-possession financing, which, together with operating cash flow, is expected to fund ongoing obligations pending court approval.
- Omnicare will continue providing pharmacy and clinical services to long-term care facilities without disruption and plans to maintain uninterrupted payment of employee wages and vendor obligations under normal terms.
- The restructuring process will evaluate both standalone restructuring and potential sale options while remaining focused on customer support and service delivery.
- CVS Health’s Omnicare unit has filed for Chapter 11 bankruptcy in the Northern District of Texas to manage a $949 million legal penalty stemming from alleged fraudulent prescription claims.
- Omnicare listed assets of at least $100 million and liabilities of $1–10 billion, with the $949 million civil judgment as its largest unsecured debt.
- The filing includes $110 million in debtor-in-possession financing to maintain operations and ensure no disruption to services, employees, or vendors.
- CVS Health contends the penalty is “unconstitutional” and continues to dispute the jury’s ruling while exploring restructuring or sale options for Omnicare.
- Omnicare, a CVS Health subsidiary, filed voluntary Chapter 11 in the Northern District of Texas to address recent litigation and broader long-term care pharmacy challenges while maintaining service levels to customers and residents.
- The company secured $110 million in debtor-in-possession financing to ensure sufficient liquidity to meet ongoing obligations during the restructuring process.
- Omnicare plans to evaluate a standalone restructuring or sale strategy as part of its court-supervised process.
- During the proceedings, it will continue uninterrupted payment of employee wages, benefits, and vendor obligations under normal terms.
- Shares are up over 58% YTD, driven by outperformance across all three businesses and a turnaround in managed care.
- The healthcare benefits division saw ~12% revenue growth and ~40% operating income growth YoY, with a medical benefits ratio of 89.9%, 80 bps better than consensus.
- All segments topped expectations, including a $0.35 EPS beat on a $1.46 basis and a $1.5 billion revenue beat from the pharmacy business; health services revenue was up 10.2%.
- Management raised full-year guidance, adding $9 billion to revenue forecasts and boosting earnings outlook by $0.25 at the midpoint.
- Valuation is attractive at 11× the midpoint of 2025 EPS guidance, with a 3.7% dividend yield on an annual payout of $2.66.
- UBS raises CVS Health’s rating from Neutral to Buy and increases its price target to $79 from $67, an 18% hike.
- Analyst projects 14% EPS CAGR through 2028, outpacing the 12% Wall Street consensus, based on strong recent performance.
- CVS shares are up 53% year-to-date, with UBS estimating a further 15% upside potential.
- Upgrade reflects momentum in healthcare benefits, including repricing ~50% of multi-year Medicare Advantage contracts.
- On August 11, 2025, CVS Health entered into an Underwriting Agreement to issue and sell $4.0 billion of senior notes in four tranches, with settlement on August 15, 2025.
- The offerings comprise $750 million of 5.000% Senior Notes due 2032, $1,500 million of 5.450% Senior Notes due 2035, $1,250 million of 6.200% Senior Notes due 2055 and $500 million of 6.250% Senior Notes due 2065.
- Notes priced at approximately 99.6%–99.97% of par, implying yields of 5.051%–6.277% based on respective benchmark Treasuries, with T+4 settlement on August 15, 2025.
- Net proceeds are approximately $3.958 billion after underwriting discounts and estimated offering expenses.
- CVS Health reported Q2 revenues of $99 billion (+8% YoY), adjusted operating income of $3.8 billion (+2%), and adjusted EPS of $1.81 (flat YoY).
- The company raised its full-year 2025 guidance to adjusted EPS of $6.30–$6.40 and now expects revenues of at least $391.5 billion.
- By segment: Health Care Benefits delivered $36 billion revenue (+11%) and $1.3 billion adjusted operating income (+40%) ; Health Services posted $46 billion revenue (+10%) and $1.6 billion adjusted operating income (–18%) ; Pharmacy & Consumer Wellness generated $33 billion revenue (+12%) and $1.3 billion adjusted operating income (+8%).
- Year-to-date cash flow from operations reached $6.5 billion, with $2.4 billion in cash on hand and improving leverage since year-end 2024.
- CVS committed $20 billion over the next decade to transform health care and scheduled an Investor Day for December 9, 2025.
- Aetna introduced Aetna Care Paths in the Aetna Health app, offering personalized benefit information and care recommendations via US patent-pending technology.
- AI-driven clinical solutions will free up 90 minutes per day for nurses, enabling more one-on-one member engagement.
- This launch is part of a $20 billion multi-year digital investment aimed at simplifying healthcare navigation and enhancing member and provider experience.
- Additional app enhancements include vaccine scheduling, claims visualization with a “donut” chart, AI chat support, Smart Compare provider matching, and dark mode accessibility.
- Other new AI-powered features enable provider availability validation via claims data, personalized cost tracking and AI-driven bill matching for streamlined claims submission.
- CVS’s PBM Caremark will prefer Wegovy over Zepbound, shifting coverage to Novo’s product and affecting 200,000 Zepbound patients who must switch or pay out-of-pocket.
- In the GLP-1 obesity market, Zepbound holds 60% market share and accounts for 75% of treatment starts, underscoring strong patient preference despite CVS’s formulary move.
- Waste management equities have sold off, now trading at an 8% EV/EBITDA premium to the S&P 500 versus a 15–20% historical premium, creating a buying opportunity ahead of a looming landfill capacity squeeze (half of US landfills projected to close by 2050).
- Casella Waste Systems is highlighted as the top pick for its pure-play waste and recycling model, expansive M&A runway across 10 states, and forecast double-digit free cash flow growth over the next several years.