CVS Health hiked its 2025 forecast above Wall Street’s expectations after improving Medicare benefits contributed to a better-than-expected first quarter.
The health care giant said Thursday that it also got a boost from better star ratings for its Medicare Advantage plans, which are privately run versions of the federal government coverage program.
CVS Health and other health insurance providers have been struggling for several quarters now with rising costs from their Medicare Advantage customers. The company’s report Thursday comes a few weeks after rival UnitedHealth slashed its 2025 forecast after dealing with a bigger-than-expected spike in care use.
Overall, CVS Health booked adjusted earnings of $2.25 per share as the company’s profit soared 60% to $1.78 billion in the year’s first quarter. Total revenue climbed 7% to $94.59 billion.
Analysts expect earnings of $1.70 per share on $93.66 billion in revenue for the first quarter, according to the data firm FactSet.
For the full year, CVS Health now expects adjusted earnings to range from $6 to $6.20 per share.
The company forecast in February adjusted earnings of $5.75 to $6 per share. Analysts expect $5.92.
The guidance hike was unexpected so early in the year, Leerink Partners analyst Michael Cherny said in a research note. He added that the company's results showed positive signs across all business segments.
CVS Health Corp., based in Woonsocket, Rhode Island, runs one of the nation’s largest drugstore chains and a huge pharmacy benefit management business that operates prescription drug coverage for employers, insurers and other big clients. It also covers 27 million people through its Aetna insurance arm.
The company also said Thursday that it would leave the Affordable Care Act’s individual marketplaces next year. It currently covers about a million people in that market across 17 states. CEO David Joyner told analysts the company saw no near or long-term path to improving this business after dealing with “continued underperformance.”
Aetna had previously left the ACA’s marketplace in 2017 before eventually returning.
Company shares jumped more 8% to $72.14 at the start of trading Thursday, while broader indexes rose slightly.
The stock has already climbed more than 48% so far in 2025 after sinking over 40% last year. CVS Health’s rough 2024 included several guidance cuts and the resignation of former CEO Karen Lynch.
FILE - The exterior view of a CVS branch is shown on Tuesday, May 16, 2023, in Pasadena, Calif. (AP Photo/Marcio Jose Sanchez)
LAS VEGAS (AP) — With the start of the New Year squarely behind us, it's once again time for the annual CES trade show to shine a spotlight on the latest tech companies plan on offering in 2026.
The multi-day event, organized by the Consumer Technology Association, kicks off this week in Las Vegas, where advances across industries like robotics, healthcare, vehicles, wearables, gaming and more are set to be on display.
Artificial intelligence will be anchored in nearly everything, again, as the tech industry explores offerings consumers will want to buy. AI industry heavyweight Jensen Huang will be taking the stage to showcase Nvidia's latest productivity solutions, and AMD CEO Lisa Su will keynote to “share her vision for delivering future AI solutions.” Expect AI to come up in other keynotes, like from Lenovo's CEO, Yuanqing Yang.
The AI industry is out in full force tackling issues in healthcare, with a particular emphasis on changing individual health habits to treat conditions — such as Beyond Medicine's prescription app focused on a particular jaw disorder — or addressing data shortages in subjects such as breast milk production.
Expect more unveils around domestic robots too. Korean tech giant LG already has announced it will show off a helper bot named “ CLOiD,” which allegedly will handle a range of household tasks. Hyundai also is announcing a major push on robotics and manufacturing advancements. Extended reality, basically a virtual training ground for robots and other physical AI, is also in the buzz around CES.
In 2025, more than 141,000 attendees from over 150 countries, regions, and territories attended the CES. Organizers expect around the same numbers for this year’s show, with more than 3,500 exhibitors across the floor space this week.
The AP spoke with CTA Executive Chair and CEO Gary Shapiro about what to expect for CES 2026. The conversation has been edited for clarity and length.
Well, we have a lot at this year's show.
Obviously, using AI in a way that makes sense for people. We’re seeing a lot in robotics. More robots and humanoid-looking robots than we’ve ever had before.
We also see longevity in health, there’s a lot of focus on that. All sorts of wearable devices for almost every part of the body. Technology is answering healthcare’s gaps very quickly and that’s great for everyone.
Mobility is big with not only self-driving vehicles but also with boats and drones and all sorts of other ways of getting around. That’s very important.
And of course, content creation is always very big.
You are seeing humanoid robots right now. It sometimes works, sometimes doesn’t.
But yes, there are more and more humanoid robots. And when we talk about CES 5, 10, 15, 20 years now, we’re going to see an even larger range of humanoid robots.
Obviously, last year we saw a great interest in them. The number one product of the show was a little robotic dog that seems so life-like and fun, and affectionate for people that need that type of affection.
But of course, the humanoid robots are just one aspect of that industry. There’s a lot of specialization in robot creation, depending on what you want the robot to do. And robots can do many things that humans can’t.
AI is the future of creativity.
Certainly AI itself may be arguably creative, but the human mind is so unique that you definitely get new ideas that way. So I think the future is more of a hybrid approach, where content creators are working with AI to craft variations on a theme or to better monetize what they have to a broader audience.
We’re seeing all sorts of different devices that are implementing AI. But we have a special focus at this show, for the first time, on the disability community. Verizon set this whole stage up where we have all different ways of taking this technology and having it help people with disabilities and older people.
Well, there’s definitely no bubble when it comes to what AI can do. And what AI can do is perform miracles and solve fundamental human problems in food production and clean air and clean water. Obviously in healthcare, it’s gonna be overwhelming.
But this was like the internet itself. There was a lot of talk about a bubble, and there actually was a bubble. The difference is that in late 1990s there were basically were no revenue models. Companies were raising a lot of money with no plans for revenue.
These AI companies have significant revenues today, and companies are investing in it.
What I’m more concerned about, honestly, is not Wall Street and a bubble. Others can be concerned about that. I’m concerned about getting enough energy to process all that AI. And at this show, for the first time, we have a Korean company showing the first ever small-scale nuclear-powered energy creation device. We expect more and more of these people rushing to fill this gap because we need the energy, we need it clean and we need a kind of all-of-the-above solution.
A Coro breastfeeding monitor is pictured at a Coroflo booth during the CES Unveiled tech show Sunday, Jan. 4, 2026, in Las Vegas. (AP Photo/Abbie Parr)
Yonbo X1 robots are pictured at the X-Orgin booth during the CES Unveiled tech show Sunday, Jan. 4, 2026, in Las Vegas. (AP Photo/Abbie Parr)
A Tombot robotic puppy is pictured at a Tombot booth during the CES Unveiled tech show Sunday, Jan. 4, 2026, in Las Vegas. (AP Photo/Abbie Parr)
People arrive at the CES Unveiled tech show Sunday, Jan. 4, 2026, in Las Vegas. (AP Photo/Abbie Parr)
