01—Abstract
Summary
Summary of the 10-K filed February 12, 2025. Cited figures are marked; the original filing is the authoritative source.
CVS Health Corporation reported total revenues of $372.8 billiona for the fiscal year ended December 31, 2024, a 4.2% increase over the prior year.
This growth was primarily driven by the Health Care Benefits segment, which saw a significant 23.7% increase in total revenues, largely due to expansion in Medicare Advantage and individual exchange product lines. However, the company experienced a substantial 38.0% decrease in operating income, falling to $8.5 billionb, largely attributed to increased utilization in its Health Care Benefits segment and higher restructuring charges. The Health Services segment saw a 7.1% revenue decline primarily due to the loss of a large client, while the Pharmacy & Consumer Wellness segment reported a 6.6% revenue increase, driven by pharmacy drug mix and prescription volume, despite a decrease in front store sales.
02—Key points
Key Highlights
- Total revenues increased by 4.2% to $372.8 billion, driven by growth in Health Care Benefits and Pharmacy & Consumer Wellness segments.
- Health Care Benefits segment revenue surged by 23.7% due to strong performance in Medicare Advantage and individual exchange products.
- Operating income declined significantly by 38.0% to $8.5 billion, primarily due to increased utilization in Health Care Benefits and higher restructuring charges.
- The Health Services segment's revenue decreased by 7.1%, largely due to the loss of a major client.
- Pharmacy & Consumer Wellness segment revenue grew by 6.6%, supported by pharmacy drug mix and increased prescription volume, including vaccinations.
- The company ended the year with $8.6 billion in cash and cash equivalents.
- CVS Health Corporation continued its share repurchase program, repurchasing shares valued at $3.0 billion during 2024.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2024, CVS Health Corp kept $0.01.
- Revenue$372.81B100.0%
- Cost of revenue−$206.29B55.3%
- Gross profit$166.52B44.7%
- Operating costs−$158.01B42.4%
- Operating income$8.52B2.3%
- Interest, other & tax−$3.93B1.1%
- Net income$4.59B1.2%
Where FY2024 revenue went
$372.81B- Cost of revenue: $206.29B, 55% of revenue
- Operating costs: $158.01B, 42% of revenue
- Net income: $4.59B, 1.2% of revenue
- Interest, other & tax: $3.93B, 1.1% of revenue
Kept 1.2% as net incomeNet income $4.59B · 1.2%
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2024filed February 12, 2025Financial Statements
FY2024 against FY2023
| Line item | FY2024FY2023 | Change |
|---|---|---|
| Revenue | $372.81B$357.78B | +4.2% |
| Cost of Revenue | $206.29B$217.10B | −5.0% |
| Gross Profit | $166.52B$140.68B | +18.4% |
| Operating Expenses | $364.29B$344.03B | +5.9% |
| Operating Income | $8.52B$13.74B | −38.0% |
| Net Income | $4.59B$8.37B | −45.2% |
| EPS (Basic) | $3.67$6.49 | −43.5% |
| EPS (Diluted) | $3.66$6.47 | −43.4% |
| Shares Outstanding (Basic) | 1.26B1.28B | −2.0% |
| Shares Outstanding (Diluted) | 1.26B1.29B | −2.2% |
05—Questions
Frequently Asked Questions
What was CVS Health's overall financial performance in the fiscal year ended December 31, 2024?
CVS Health reported total revenues of $372.8 billion for the fiscal year ended December 31, 2024, a 4.2% increase compared to the prior year. However, operating income saw a significant decrease of 38.0% to $8.5 billion, primarily due to increased health care utilization and restructuring charges.
What were the key drivers of revenue growth?
Revenue growth was primarily driven by the Health Care Benefits segment, which experienced a 23.7% increase in total revenues, largely attributed to expansions in its Medicare Advantage and individual exchange product lines. The Pharmacy & Consumer Wellness segment also contributed to revenue growth with a 6.6% increase, driven by pharmacy drug mix and higher prescription volumes, including vaccinations.
What factors negatively impacted the company's profitability?
Profitability was negatively impacted by a substantial 38.0% decrease in operating income. Key factors contributing to this decline included increased utilization within the Health Care Benefits segment, higher restructuring charges related to an enterprise-wide plan, and a decrease in revenue for the Health Services segment, notably due to the loss of a large client.
How has the company's debt and capital structure changed?
The company's long-term debt increased, contributing to a 11.3% rise in interest expense. During 2024, CVS Health issued $5.0 billion in senior notes in May and $3.0 billion in junior subordinated notes in December, with proceeds used for general corporate purposes and to extinguish certain senior notes. Share repurchases also continued, with $3.0 billion in common stock repurchased during the year.
06—Continue