CVS Health: Can Its New PBM Strategy Finally Cut America’s Drug Costs?

CVS Health Corporation’s financial performance for the third quarter of 2025 reflects a blend of success and challenges across its diversified business segments. The company reported solid results, with an adjusted operating income of $3.5 billion and adjusted earnings per share (EPS) of $1.60, surpassing expectations for the third consecutive quarter. The full-year adjusted EPS guidance was increased to a range of $6.55 to $6.65, indicating confidence in their ongoing strategies. Revenue for the third quarter reached a record high of nearly $103 billion, representing an 8% year-over-year increase. This growth was driven by gains across all segments, but particularly notable was the Health Care Benefits segment, which saw a 9% increase in revenue due to improvements in the government business, and the Pharmacy Services segment, which achieved $49 billion in revenue despite facing challenges in client pricing.