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CVS triples net income thanks to booming health plan profitability
['Rebecca Pifer Parduhn', 'Emily Olsen', 'Senior Reporter']
Healthcare Dive - Latest News
“There’s not much more to say for CVS’ 2Q other than... wow,” Leerink analyst Michael Cherny wrote in a Wednesday note.
CVS is the latest insurer to post a beat-and-raise in the second quarter as insurers make progress on margin recovery, following UnitedHealth Elevance, Centene, Molina and Cigna.
CVS’ other two reporting divisions — health services, which includes major pharmacy benefit manager Caremark; and pharmacy and consumer wellness, which includes CVS’ retail stores — also performed well in the second quarter.
Health services posted operating income of $1.6 billion, up 45% year over year, on revenue of $51.8 billion, up 11% year over year.
However, GLP-1s have driven substantial revenue gains for PBMs like Caremark and been a financial boon for CVS pharmacies.