CVS Health reported Q3 2025 revenue of $93.8 billion, up 3.4% YoY, exceeding analyst expectations. However, adjusted EPS of $2.16 slightly missed the $2.21 consensus as higher medical costs in its Aetna insurance arm offset pharmacy and retail growth. The company maintained its full-year guidance but acknowledged that medical-cost ratios rose to 88.4%, reflecting heavier claims volumes tied to elective surgeries and GLP-1 prescriptions. Meanwhile, pharmacy sales rose 7%, supported by demand for weight-loss drugs like Ozempic and Wegovy, plus rising vaccination traffic in its retail clinics.

CVS also announced a cost-optimization initiative to cut $800 million in overhead by 2026 while investing in digital care and in-store health services. The strategic goal: transition from a traditional drugstore to a vertically integrated healthcare provider that connects insurance, retail, and primary care. Investors viewed the quarter as mixed but resilient stable revenues, challenged margins, and a clear pivot toward efficiency amid industry cost inflation. Shares inched up 1.5% post-earnings, reflecting cautious optimism.