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Key takeaways
- Shares of CVS Health rose Tuesday after the health group raised its full-year outlook.
- The company also announced plans to create a platform with AI features as part of its engagement strategy.
CVS wants investors to know that it sees greater profits in the future, and has new plans for artificial intelligence.
Shares of CVS Health ( CVS ) rose nearly 2% on Tuesday after the health group raised its full-year outlook and outlined an artificial intelligence strategy to increase engagement.
The parent company of CVS Pharmacy and benefits manager CVS Caremark and Aetna Insurance said it now sees full-year adjusted earnings per share of $6.60 to $6.70, up from a previous forecast of $6.55 to $6.65. It expects revenues of no less than $400 billion, compared to previous expectations of no less than $397.3 billion. For fiscal 2026, CVS expects adjusted EPS of $5.94 to $6.14 on revenue of at least $400 billion.
The company cited strong earnings growth at Aetna and new customers for its pharmacy benefits business for a stronger outlook, among other things.
“We are closing out 2025 with great momentum across our business and expect another year of strong earnings growth in 2026,” said CFO Brian Newman.
Why is this important to investors?
A stronger outlook from CVS could help boost confidence in the chain’s turnaround efforts under new CEO David Joyner, who took over in October after a difficult tenure marked by concerns about rising medical costs, declining store traffic and competition.
During its Investor Day event on Tuesday, CVS also outlined a new engagement plan, which includes building a platform with artificial intelligence capabilities. CVS said the move “will bring together the various components of healthcare into one easy-to-use platform, installed in one app.”
With Tuesday’s gains, CVS Health shares have added about three-quarters of their value this year, although they are still far from their 2022 highs.
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