CVS Health Stock Soars 9.15% on Strong Q2 Earnings

CVS Health's stock surged 9.15% in pre-market trading on July 31, 2025, driven by strong second-quarter performance and an upward revision of its full-year forecast.

CVS Health exceeded second-quarter expectations and raised its full-year forecast for the second time this year. The company now anticipates fiscal 2025 adjusted earnings of $6.30 to $6.40 per share, up from the previous guidance of $6.00 to $6.20 per share. This revision reflects the company's robust performance in its Health Care Delivery business, which has been a significant driver of top-line growth.

The Health Care Delivery unit, part of the Health Services segment, saw revenues grow by 27% in the March 2025 quarter, excluding the impact of the company's exit from certain programs and the sale of specific businesses. This growth is largely attributed to the contributions of Signify Health and Oak Street Health, both acquired in 2023, which have enhanced CVS' value-based strategy by adding primary care, home-based care, and provider enablement capabilities.

Signify Health completed over 3 million in-home health evaluations in 2024, while Oak Street Health reported a 37% growth in at-risk members. However, the financial performance of this business remains closely tied to Medicare Advantage medical cost trends and regulations, which CVS is monitoring closely.