Summary
CVS Health Corporation reported total revenues of $372.8 billion 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 billion, 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.
Financial Highlights
55 data points| Revenue | $372.81B |
| Cost of Revenue | $206.29B |
| Gross Profit | $166.52B |
| Operating Expenses | $364.29B |
| Operating Income | $8.52B |
| Net Income | $4.61B |
| EPS (Basic) | $3.67 |
| EPS (Diluted) | $3.66 |
| Shares Outstanding (Basic) | 1.26B |
| Shares Outstanding (Diluted) | 1.26B |
Key Highlights
- 1Total revenues increased by 4.2% to $372.8 billion, driven by growth in Health Care Benefits and Pharmacy & Consumer Wellness segments.
- 2Health Care Benefits segment revenue surged by 23.7% due to strong performance in Medicare Advantage and individual exchange products.
- 3Operating income declined significantly by 38.0% to $8.5 billion, primarily due to increased utilization in Health Care Benefits and higher restructuring charges.
- 4The Health Services segment's revenue decreased by 7.1%, largely due to the loss of a major client.
- 5Pharmacy & Consumer Wellness segment revenue grew by 6.6%, supported by pharmacy drug mix and increased prescription volume, including vaccinations.
- 6The company ended the year with $8.6 billion in cash and cash equivalents.
- 7CVS Health Corporation continued its share repurchase program, repurchasing shares valued at $3.0 billion during 2024.