On November 1, 2023, CVS Health Corp (CVS, Financial) announced its operating results for the third quarter ended September 30, 2023. The company reported a significant increase in total revenues, which rose by 10.6% to $89.8 billion compared to the same period last year. This growth was driven by strong performance across all segments.
Financial Highlights
CVS Health Corp (CVS, Financial) reported a GAAP diluted EPS of $1.75 and an Adjusted EPS of $2.21 for the third quarter. The company's year-to-date revenues also saw a 10.6% increase, reaching $264.0 billion. The GAAP diluted EPS for the year-to-date period stood at $4.88, with an Adjusted EPS of $6.62. The company generated a cash flow from operations of $16.1 billion.
Performance Across Segments
CVS Health Corp (CVS, Financial) reported growth across all segments. The Health Care Benefits segment saw a 16.9% increase in total revenues for the three months ended September 30, 2023, compared to the prior year. However, the Adjusted operating income for this segment decreased by 6.4% due to increased utilization in Medicare Advantage.
The Health Services segment reported an 8.4% increase in total revenues for the same period, primarily driven by pharmacy drug mix, growth in specialty pharmacy, brand inflation, and the acquisitions of Oak Street Health and Signify Health.
The Pharmacy & Consumer Wellness segment reported a 6.0% increase in total revenues for the three months ended September 30, 2023, primarily driven by pharmacy drug mix, increased prescription volume, and brand inflation.
Full-Year Guidance
For the full year 2023, CVS Health Corp (CVS, Financial) revised its GAAP diluted EPS guidance range to $6.37 to $6.61 from $6.53 to $6.75. The company confirmed its full-year 2023 Adjusted EPS guidance range of $8.50 to $8.70 and its cash flow from operations guidance range of $12.5 billion to $13.5 billion.
CEO Commentary
Our colleagues helped us deliver another quarter of positive results across our business areas. Despite a challenging business environment, we continue adapting to the changing needs of our consumers by connecting our care delivery capabilities in communities across the country, broadening access to care and lowering costs. - Karen S. Lynch, CVS Health President and CEO
CVS Health Corp (CVS, Financial) continues to demonstrate strong financial performance, with significant growth in total revenues and robust performance across all segments. The company's strategic initiatives and focus on meeting the changing needs of consumers are driving this growth.
Explore the complete 8-K earnings release (here) from CVS Health Corp for further details.
