CVS Health (CVS) Q4 2025 Earnings Call Transcript

Motley Fool Transcribing, The Motley Fool

Wed, February 11, 2026 astatine 8:27 AM CST 48 min read

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Wednesday, February 11, 2026 astatine 8:00 a.m. ET

• Chief Executive Officer — David Joyner

• Chief Financial Officer — Brian Newman

• President, Aetna — Steve Nelson

• President, Pharmacy and Consumer Wellness — Len Shankman

• President, Pharmacy Services — Ed DeVaney

• Chief Pharmacy Officer — Prem Shah

• President, Health Care Delivery — Dr. Sri

David Joyner: Thank you, Larry, and bully morning, everyone. I privation to commencement contiguous by recognizing that 2025 was a meaningful twelvemonth of advancement for CVS Health. As I adjacent retired my archetypal afloat twelvemonth arsenic CEO, I'm encouraged by our ongoing enactment to simplify the wellness attraction acquisition and marque wellness attraction much affordable and accessible for American families. However, the wellness attraction acquisition is inactive not wherever it needs to be. Our enactment squad and our 300,000 colleagues enactment hard each time to marque it amended and to recognize our ambition of becoming America's astir trusted wellness attraction company. I'm besides arrogant of our advancement successful strengthening our operations and driving improved fiscal performance.

This morning, we are pleased to erstwhile again study different 4th of beardown results. In the 4th quarter, we delivered adjusted operating income of $2.6 cardinal and adjusted net per stock of $1.09. We're besides reaffirming our full-year 2026 adjusted EPS guidance scope of $7 to $7.20 that we shared astatine our Investor Day successful December. For the afloat twelvemonth 2025, we delivered adjusted net per stock of $6.75 and operating currency travel of $10.6 billion, exceeding our archetypal expectations coming into the twelvemonth for adjusted EPS by astir 15% and meaningfully outperforming our expectations connected currency flow.

We inactive person an unthinkable magnitude of net powerfulness to unlock crossed our diversified business, but our advancement to day has been impressive. In our Aetna business, we dramatically improved our fiscal results, delivering a year-over-year adjusted operating income betterment of implicit $2.6 billion. We refreshed our enactment team, improved our culture, and strengthened our cardinal points of distinction, including the capabilities that enabled our starring stars presumption among nationalist payers. We entered 2026 with important momentum and expect this twelvemonth to beryllium different beardown measurement guardant connected our way to people margins. Our efforts are being recognized successful the market. Recently, Aetna received the inaugural Presque Any Health Plan of the Year Award.

This grant acknowledged america for our high-quality offerings, technological innovation, and the best-in-class experiences we present to our members, partners, and providers. This designation validates the disciplined execution and relentless committedness of our colleagues and is simply a almighty impervious constituent that we are making advancement driving favoritism and improving simplicity successful wellness care. Before I item immoderate of the successes successful our pharmacy businesses, I privation to walk a infinitesimal connected the 2027 Medicare Advantage precocious complaint notice. The projected complaint simply does not lucifer the level of aesculapian outgo inclination successful the industry.