CVS Health Q2 2025 Earnings Report

CVS Health EPS Results

• Actual EPS: $1.81
• Consensus EPS: $1.46
• Beat/Miss: Beat by +$0.35
• One Year Ago EPS: $1.83

CVS Health Revenue Results

• Actual Revenue: $98.92 billion
• Expected Revenue: $94.87 billion
• Beat/Miss: Beat by +$4.05 billion
• YoY Revenue Growth: +8.40%

CVS Health Announcement Details

• Quarter: Q2 2025
• Date: 7/31/2025
• Time: Before Market Opens
• Conference Call Date: Thursday, July 31, 2025
• Conference Call Time: 8:00AM ET

CVS Health (NYSE:CVS) provides health solutions in the United States. It operates through Health Care Benefits, Health Services, and Pharmacy & Consumer Wellness segments. The Health Care Benefits segment offers traditional, voluntary, and consumer-directed health insurance products and related services. It serves employer groups, individuals, college students, part-time and hourly workers, health plans, health care providers, governmental units, government-sponsored plans, labor groups, and expatriates. The Health Services segment offers pharmacy benefit management solutions, including plan design and administration, formulary management, retail pharmacy network management, specialty and mail order pharmacy, clinical, disease management, and medical spend management services. It serves employers, insurance companies, unions, government employee groups, health plans, prescription drug plans, Medicaid managed care plans, CMS, plans offered on public health insurance, and other sponsors of health benefit plans. The Pharmacy & Consumer Wellness segment sells prescription and over-the-counter drugs, consumer health and beauty products, and personal care products. This segment also distributes prescription drugs; and provides related pharmacy consulting and other ancillary services to care facilities and other care settings. It operates online retail pharmacy websites, LTC pharmacies and on-site pharmacies, retail specialty pharmacy stores, compounding pharmacies and branches for infusion and enteral nutrition services. The company was formerly known as CVS Caremark Corporation and changed its name to CVS Health Corporation in September 2014. CVS Health Corporation was incorporated in 1996 and is headquartered in Woonsocket, Rhode Island.

CVS Health Q2 2025 Earnings Call Transcript

Key Takeaways

• Positive Sentiment: In Q2 CVS Health delivered $3.8 billion in adjusted operating income and $1.81 adjusted EPS, and raised full-year 2025 EPS guidance to $6.30–$6.40.
• Positive Sentiment: The Aetna segment saw meaningful progress on its margin recovery plan through organizational realignment and technology automation, improving member service and cost management.
• Negative Sentiment: The health care delivery business at Oak Street faced elevated medical benefit ratios due to higher utilization and richer supplemental benefits, weighing on segment results.
• Positive Sentiment: Caremark’s PBM unit drove client and consumer savings—over 95% adoption of a preferred GLP-1 formulary—and its weight management program delivered double-digit average weight loss.
• Positive Sentiment: Retail pharmacy achieved 12% revenue growth with script share up to 27.8% and is on track converting commercial scripts to the CVS CostVantage reimbursement model.

Presentation

[Operator]

Hello, and welcome to CVS Health's Second Quarter twenty twenty five Earnings Call. Would now like to pass

[Larry McGrath, EVP, Chief Strategy Officer & Chief Strategic Advisor to the CEO at CVS Health]

morning, and welcome to the CVS Health second quarter twenty twenty five earnings call and webcast. I'm Larry McGrath, chief strategy officer. I'm joined this morning by David Joyner, president and chief executive officer, and Brian Newman, chief financial officer. Following our prepared remarks, we'll host a question and answer session that will include additional members of the leadership team. Our press release and slide presentation have been posted to our website along with our Form 10 Q filed this morning with the SEC.

[Larry McGrath, EVP, Chief Strategy Officer & Chief Strategic Advisor to the CEO at CVS Health]

Today's call is also being broadcast on our website where it will be archived for one year. During this call, we'll make certain forward looking statements. Our forward looking statements are subject to significant risks and uncertainties that could cause actual results to differ materially from currently projected results. We strongly encourage you to review the reports we file with the SEC regarding these risks and uncertainties, in particular, those that are described in the cautionary statement concerning forward looking statements and risk factors in our most recent annual report on Form 10 ks, our quarterly report on Form 10 Q filed this morning, and our recent filings on Form eight k, including this morning's earnings press release. During this call, we'll use non GAAP measures when talking about the company's financial performance and financial condition, and you can find a reconciliation of these non GAAP measures in this morning's press release and in the reconciliation document posted to the investor relations portion of our website.

[Larry McGrath, EVP, Chief Strategy Officer & Chief Strategic Advisor to the CEO at CVS Health]

With that, I'd like to turn the call over to David. David?

[David Joyner, Director, President & CEO at CVS Health]

Thank you, Larry, and good morning, everyone. This morning, we are pleased to report another consecutive quarter of solid results as we execute against our ambition of becoming America's most trusted health care company. In the second quarter, we delivered adjusted operating income of $3,800,000,000 and adjusted earnings per share of a dollar 81. We again increased our full year 2025 adjusted EPS guidance to a range of $6.30 to $6.4 up from our previous range of $6 to $6.2 Our strong results and updated expectations reflect the power of our diversified business. We are seeing the impact of our intense focus on the execution within our Aetna and pharmacy businesses while managing incremental pressure in health care delivery.

[David Joyner, Director, President & CEO at CVS Health]

We are encouraged by our enterprise performance and revised outlook, especially in this very dynamic environment. At the same time, we continue to maintain a prudent and respectful outlook for the remainder of the year with clear opportunities for outperformance. Ryan will provide specifics later in the call. As we focus on delivering against our financial commitments to you, we are also taking on the largest challenges in health care, affordability, access, and inconsistent care coordination. The breadth of these problems means that they can't be addressed with a fragmented piecemeal approach.

[David Joyner, Director, President & CEO at CVS Health]

Instead, it requires holistic solutions implemented by companies with the necessary reach, capabilities, and focus to execute on them. CVS holds a unique position in health care with our diverse and scaled businesses, our national footprint of community health destinations, and the deep connections we have with more than 185,000,000 consumers. We have unmatched reach and powerful insights that drive our innovation and differentiated solutions. Tackling these challenges requires that each of our businesses be best in class. I'm pleased to report that we are making meaningful progress in the Aetna business.

[David Joyner, Director, President & CEO at CVS Health]

Our recovery has been a top priority. We realigned the organization and strengthened our talent with a clear focus on creating distinction in the marketplace. We enhanced our operations using technology to automate and streamline processes that improve service and reduce friction for our members and health care professionals. We're starting to see the results of these efforts, delivering better experiences while also allowing us to better navigate this elevated utilization environment. But our work is not done.

[David Joyner, Director, President & CEO at CVS Health]

As we look ahead, we will maintain this intense focus, continuing to diligently execute against our margin recovery plan. While we are pleased with the improvements we are seeing at Aetna, we continue to see pressure in our health care delivery business driven by higher medical benefit ratios at Oak Street. This is partially offset by continued positive performance at Signify Health. Value based care remains a critical component of our Medicare Advantage strategy as we know that it delivers better clinical outcomes, better patient experiences, and a lower total cost of care. We are working with urgency to further strengthen this business and ensure seniors can benefit from this industry leading model.

[David Joyner, Director, President & CEO at CVS Health]

This includes improving operations through investments in technology, enhancing leadership with talent from across CVS Health, and improving our partnerships with our payer clients. We know that Oak Street capabilities are best in class and are taking the right actions to improve performance. Let me turn now to our pharmacy businesses. At Caremark, we are delivering on our commitments to clients and members by doing what PBMs do best, adapting to client needs, driving down drug costs, and helping to deliver better access and outcomes. Managing trend remains the most important focus for our customers as they try to balance the benefit of new drug innovations and their higher cost.

[David Joyner, Director, President & CEO at CVS Health]

Our PBM is saving consumers and clients billions of dollars a year on drug costs, but we must continue to innovate and drive more savings. For example, our clients needed a solution as they experienced the impact of the rapid growth and the use of GLP ones. Spend in this category for our employer clients has nearly doubled over the last two years and now represent 15% of their pharmacy costs. On July 1, we took a significant step to create competition among manufacturers to lower cost in this drug category. We used our unique capabilities to minimize friction, resulting in over ninety five percent of the eligible members adopting a preferred formulary weight loss product.

[David Joyner, Director, President & CEO at CVS Health]

However, we know drug therapy alone is not enough to achieve the best outcomes. To address this, we offer a powerful weight management program that empowers patients to achieve greater weight loss than drug therapy alone. Importantly, our program participants on average achieved double digit percent weight loss at twelve months regardless of the drug they use. Our innovation, reach, and clinical capabilities differentiate us in the PBM marketplace. We're having a strong start to the 2026 selling season with retention expected to be in the high nineties.

[David Joyner, Director, President & CEO at CVS Health]

Our approach and commitment to lowering cost is also leading to new wins with the most sophisticated clients. For example, in our new business win with CalPERS, they specifically highlighted our commitment to delivering more affordable drug benefits and our performance based model that emphasizes managing pharmacy cost and ensuring clinical quality. In our retail pharmacy business, we are working tirelessly to be the source of stability as we ensure the communities we serve across America maintain access to their medications. PCW delivered another strong quarter despite persistent reimbursement pressures. Our performance is a direct result of our ability to anticipate market dynamics and take the right actions to lead the industry.

[David Joyner, Director, President & CEO at CVS Health]

We've made deliberate investments in technology and our colleagues to strengthen our operations, deliver best in class service, and ensure we are the employer of choice in the pharmacy market. Our front store business continues to improve as we grow our customer base and gain retail share. We continue to have best in class generic drug purchasing through Red Oak, and we share those savings with our payer partners through our CVS cost advantage model. Under this new model, we are fairly reimbursed for every script we dispense and the value we provide to our customers. We are encouraged by the transition of our commercial scripts to CVS CostVantage, which continues to be in line with our expectations.

[David Joyner, Director, President & CEO at CVS Health]

We're making good progress on the next stage of evolving the pharmacy reimbursement model as we transition our government business to cost based pricing models for 2026. This quarter, we made a number of important announcements as we strive towards our goal of improving the health care experience in America. Last month, we announced our pledge with CMS to streamline, simplify, and reduce unnecessary complexities in health care. We've taken a leading role in the industry's initiative to improve prior authorization and deliver a better experience for providers and patients. But we're not stopping there.

[David Joyner, Director, President & CEO at CVS Health]

We've taken steps to make the prior authorization process simpler for patients undergoing cancer care. We are bundling multiple requests into one upfront approval, eliminating unnecessary complexity. Response to this initiative has been encouraging, and we're working hard to expand the program to additional therapeutic areas. We also recently announced that over the next decade, we committed $20,000,000,000 to support our transformation of health care. We will deliver a better health care experience with reduced friction, greater visibility, and a stronger partnership with doctors and hospitals.

[David Joyner, Director, President & CEO at CVS Health]

By delivering on these ambitions, we'll enable providers to focus on patient care instead of administrative tasks. Members will benefit from the clearer communication and simpler health care journeys. We will develop new ways to connect the health care landscape so it works better for people. We will use emerging technologies to innovate and drive the transformation of the health care experience of today, making it unrecognizable in ten years. Our investments will allow us to drive change at scale and will empower consumers with the right information to engage on their terms.

[David Joyner, Director, President & CEO at CVS Health]

We look forward to sharing additional updates and innovations in the near future. We are building momentum as we navigate what continues to be dynamic and evolving environment. We're strengthening our position as we execute against our strategic priorities and deliver solid results. We remain focused on building trust and are setting expectations that are appropriate and achievable and continue to focus on areas where we can drive outperformance. With that, I'd like to hand the call over to Brian. Brian?

[Brian Newman, EVP & CFO at CVS Health]

Thank you, David, and good morning. I wanna start off by saying how excited I am to be part of CVS Health and this leadership team. I joined CVS Health because I truly believe in the meaningful impact we can have on improving health care in this country. Our scale and deep consumer touch points uniquely position us to deliver a differentiated experience. After my first couple of months, my belief in our enterprise mission has been consistently reaffirmed.

[Brian Newman, EVP & CFO at CVS Health]

I am looking forward to meeting many of you over the course of the next few months and sharing updates about our progress. In my prepared remarks this morning, I will cover three primary areas. First, I will provide an update on our second quarter results. Next, I'll discuss cash flow and the balance sheet. And finally, I'll wrap up with our financial outlook for the remainder of the year.

[Brian Newman, EVP & CFO at CVS Health]

CVS Health successfully navigated another dynamic quarter driven by the strength of our execution. Let me provide some highlights on our enterprise performance. Second quarter revenues of nearly $99,000,000,000 increased approximately 8% over the prior year quarter driven by revenue growth across all segments. We delivered adjusted operating income of approximately $3,800,000,000 during the quarter, an increase of nearly 2% from the prior year quarter driven by increases in our health care benefits and pharmacy and consumer wellness segments, partially offset by a decline in our health services segment. Second quarter adjusted EPS of a dollar 81 was relatively consistent with the prior year quarter.

[Brian Newman, EVP & CFO at CVS Health]

Finally, we generated year to date cash flow from operations of approximately $6,500,000,000. Turning now to each of our segments. In health care benefits, we generated over $36,000,000,000 of revenue in the quarter, an increase of over 11% from the prior year, primarily driven by increases in our government businesses, largely related to the impact of the inflation reduction act on the Medicare Part D program. Medical membership of approximately 26,700,000 as of the end of the quarter decreased by approximately 350,000 members sequentially, primarily driven by the previously discussed declines in our individual exchange product early in the second quarter. Adjusted operating income in the quarter was approximately $1,300,000,000 an increase of nearly 40% from the prior year quarter, driven by the favorable year over year impact of changes to our individual exchange risk adjustment estimates, improved underlying performance in our government businesses, and higher favorable prior period development.

[Brian Newman, EVP & CFO at CVS Health]

These increases were partially offset by a premium deficiency reserve in our group Medicare Advantage business of approximately $470,000,000. Trends in our group MA business remained elevated during the quarter and were modestly higher than our expectations. This resulted in a revision of our estimate for trends for the remainder of the 2025 plan year, triggering a PDR. As we previously discussed, group MA contracts tend to be multiyear agreements and reprice less frequently than our individual MA business. We expect to make progress on margin recovery in our group MA book over the next few years as contracts come due for renewal, including the opportunity to reprice approximately half of our group MA revenue in 2026.

[Brian Newman, EVP & CFO at CVS Health]

Our medical benefit ratio during the quarter was 89.9%, an increase of 30 basis points from the prior year. This increase primarily reflects a 140 basis point impact from the group MAPDR, largely offset by the favorable year over year impact of changes in our individual exchange risk adjustment and estimates. During the quarter, we received final 2024 risk adjustment data for our individual exchange business. As a result, we decreased our risk adjustment payable for the 2024 plan year by approximately $300,000,000. We experienced favorable development across all lines of business during the quarter, predominantly related to fourth quarter twenty twenty four and first quarter twenty twenty five dates of service.

[Brian Newman, EVP & CFO at CVS Health]

When the favorable prior year development is combined with the favorable risk adjustment, it largely offsets the impact of the group MA PDR within the quarter. In our Medicare business, while trends remained elevated, performance in the quarter was modestly ahead of expectations. This outperformance was again primarily in our individual Medicare Advantage business driven by favorability within our supplemental benefit offerings and Part d. We continue to remain cautious on the outlook for Part d until we have additional experience given the substantial changes in plan liability in 2025. Across our other Aetna lines of business, results were broadly in line with our expectations.

[Brian Newman, EVP & CFO at CVS Health]

There were no changes to the expectations embedded in the PDR we recorded last quarter related to our individual exchange business, although we continue to closely monitor emerging cost trends in this book. Days claim payable at the end of the quarter was approximately forty point nine days, down approximately two days sequentially, primarily driven by a higher mix of pharmacy costs, partially offset by the impact of the group MA premium deficiency reserve recorded in the quarter. We remain confident in the adequacy of our reserves. Shifting now to our health services segment. During the quarter, we generated revenues of over $46,000,000,000, an increase of over 10% year over year.

[Brian Newman, EVP & CFO at CVS Health]

This increase was primarily driven by pharmacy drug mix and brand inflation, partially offset by continued pharmacy client price improvements. Adjusted operating income in the quarter of approximately $1,600,000,000 decreased approximately 18 from the prior year quarter, primarily driven by continued pharmacy client price improvements and the impact of a higher medical benefit ratio within our health care delivery business, partially offset by improved purchasing economics and pharmacy drug mix. As we discussed last quarter, results in our pharmacy services business can see material fluctuations throughout the year. In 2024, we we saw a strong performance in the second quarter following a slow start to the year, which impacts the prior year comparison. In our health care delivery business, total revenues in the quarter grew approximately 19% compared to the same quarter last year, excluding the impact of our exit from the ACO REACH program and the sale of our MSSP business earlier this year.

[Brian Newman, EVP & CFO at CVS Health]

This increase was primarily driven by patient growth at Oak Street and increased volumes at Signify. During the quarter, we continued to expand the number of patients served at Oak Street and ended the quarter with total at risk membership up 31% from the same period last year. Results in our health care delivery business were pressured during the quarter primarily due to a higher medical benefit ratio at Oak Street Health. These pressures were partially offset by another quarter of solid performance in Signify, driven by continued strong volumes. Our pharmacy and consumer wellness segment delivered another strong quarter as our focus on operational excellence and technological enhancements continues to enable us to deliver superior experiences for our customers.

[Brian Newman, EVP & CFO at CVS Health]

During the quarter, we generated revenues of over $33,000,000,000, an increase of over 12% versus the prior year quarter and over 15% on a same store basis. These increases were primarily driven by pharmacy drug mix and increased prescription and front store volume, including some early impact from the acquisition of a portion of Rite Aid scripts, partially offset by continued pharmacy reimbursement pressure. Retail pharmacy script share in the quarter grew to approximately 27.8%, an increase of approximately 60 basis points from the same period last year. Same store pharmacy sales in the quarter grew over 18% compared to the prior year, and same store prescription volumes increased over 6%. Same store front store sales increased over 3% versus the prior year quarter, primarily driven by higher volumes as well as the timing of the Easter holiday, which contributed roughly one percentage point.

[Brian Newman, EVP & CFO at CVS Health]

Adjusted operating income increased nearly 8% from the prior year to over $1,300,000,000, primarily driven by increased prescription and front store volume, partially offset by continued pharmacy reimbursement pressure. Turning now to cash flow and the balance sheet. We generated cash flows from operations of approximately $6,500,000,000 in the first half of the year. We have distributed approximately $1,700,000,000 in dividends to our shareholders year to date, and we ended the quarter with approximately $2,400,000,000 of cash at the parent and unrestricted subsidiaries. While our leverage ratio remains above our long term targets, it has improved meaningfully since year end twenty twenty four, and we remain pleased by our progress.

[Brian Newman, EVP & CFO at CVS Health]

We continue to expect our leverage ratio to return to more normalized levels as we maintain disciplined financial policies and make progress on margin recovery in the Aetna business. CVS Health's strong cash flow generation has been an important strength for the enterprise, which I will look to build upon by seeking opportunities to drive greater efficiency in working capital. As I step into this role, I will ensure that we maintain a disciplined and balanced approach to capital deployment. This is critical as we continue to strengthen our balance sheet and make progress towards our leverage target. Shifting now to our revised outlook for 2025.

[Brian Newman, EVP & CFO at CVS Health]

We are increasing our full year 2025 guidance for adjusted EPS to a range of $6.30 to $6.40. This update incorporates our second quarter performance while maintaining a prudent outlook on medical cost trends and macro factors for the remainder of the year. We now expect full year total revenues of at least $391,500,000,000, an increase of approximately $9,000,000,000 driven by increases across all segments. In our health care benefits segment, we now expect full year adjusted operating income of approximately $2,420,000,000 at the low end of our guidance range. This reflects an increase of approximately $500,000,000 primarily driven by the final 2024 risk adjustment update for our individual exchange business and the favorable impact of the prior year reserve development that we experienced in the second quarter.

[Brian Newman, EVP & CFO at CVS Health]

We now project our full year 2025 medical benefit ratio at the low end of our health care benefits adjusted operating income guidance range to be approximately 91%. This guidance continues to reflect the deliberate actions we took to improve our operations in the Aetna business. While medical cost trends remain elevated versus historical periods, in aggregate, they are generally in line to slightly better than our expectations so far this year. Given this elevated trend environment, we are maintaining a prudent view on medical cost trends through the remainder of the year. The high end of our health care benefits guidance reflects a 50 basis point improvement in medical cost trend over the remainder of the year, which is worth approximately 10¢ in enterprise adjusted EPS.

[Brian Newman, EVP & CFO at CVS Health]

Our medical membership guidance remains unchanged. In our health services segment, we now expect full year adjusted operating income of at least $7,340,000,000, a decrease of approximately $200,000,000,000 from our prior guidance. This update is entirely driven by our health care delivery business as a result of a higher medical benefit ratio at Oak Street. Our clients continue to see the tremendous value proposition of our pharmacy services businesses, including Caremark. The outlook for our pharmacy services business within our health services segment remains unchanged.

[Brian Newman, EVP & CFO at CVS Health]

Finally, in our pharmacy and consumer wellness segment, we now expect full year adjusted operating income of at least $5,680,000,000, an increase of approximately $200,000,000,000 from our prior guidance. This increase reflects our strong first half performance while continuing to maintain our prudent outlook for potential changes in vaccine market demand and the consumer environment. We are pleased with our transition to CVS CostVantage, which continues to track in line with our expectations. Altogether, we now expect full year enterprise adjusted operating income to be in a range of $13,770,000,000 to $13,940,000,000. We're also revising our expectations for full year cash flow from operations to at least 7,500,000,000.

[Brian Newman, EVP & CFO at CVS Health]

You can find additional details on the components of our 2025 guidance on our investor relations website. Overall, we are encouraged by our performance. For another consecutive quarter, we're delivering on our commitments and continue to demonstrate clear progress on our path to achieving the embedded earnings power of CVS Health. I'm confident we will continue building on our momentum as we will aspire to become America's most trusted health care company while simultaneously generating value for you, our shareholders. With that, we will now open the call to your questions. Operator?

[Operator]

Thank you. At this time, if you would like to ask a question, please click on the raise hand button, which can be found on the black bar at the bottom of your screen. When it is your turn, you will receive a message on your screen, and then you will hear your name called. Please accept, unmute your audio, and ask your question. We ask that you please limit yourself to one question this morning.

[Operator]

We will wait one moment to allow the queue to form. Our first question will come from Lisa Gill with JPMorgan. You may now unmute your audio and ask your question.

[Lisa Gill, Managing Director at JP Morgan]

Great. Good morning, and congratulations on the results. And welcome, Brian. I look forward to to meeting you. Obviously, q two strong performance and HCB up 40%, $600,000,000 beat on the core side by our numbers.

[Lisa Gill, Managing Director at JP Morgan]

Underlying assumptions and visibility, you know, when we think about how that looks post the quarter and the guidance that you've given, there's a lot of moving parts here. Can you maybe just talk about the level of visibility you have, with some of the underlying assumptions are, your level of conviction moving into to the back half of the year?

[David Joyner, Director, President & CEO at CVS Health]

Yeah. Thanks. Thanks, Lisa, and I appreciate the appreciate the the question. Before I turn it over to Brian, let me just make a couple of high level comments about the Aetna business. One is we know this has been one of the top priorities of the enterprise.

[David Joyner, Director, President & CEO at CVS Health]

It's been an enterprise focus on the multiyear recovery, and I'm really pleased with the progress to date, and we'll share some color on the on the back half of the year as well. One of the things I think is equally as important is the innovation that Aetna is driving. So while they're focusing on the recovery, they're equally focused on driving innovation, simplifying health care. You've seen this in the work we've done with the prior authorizations, with the bundled PA process, as well as the new care path and technology that we're rolling out. So I'm really bullish on on the progress that Aetna is making.

[David Joyner, Director, President & CEO at CVS Health]

And so I'll turn it over to Brian to give some of the financial details, then I'm going to have Steve provide some color more broadly on the Aetna business.

[Brian Newman, EVP & CFO at CVS Health]

Brian? Thanks, David, and good morning, Lisa. Thanks for the question. In terms of HCB, it was the second consecutive quarter of strong results. We saw our earnings grow by $370,000,000 year over year, so a good quarter.

[Brian Newman, EVP & CFO at CVS Health]

As David mentioned, encouraged by the performance across our HCB businesses. The notable exception, Lisa, is our group Medicare Advantage business, which continued to be pressured. The medical cost trends, I would say, across all all lines of business remained elevated, but they were modestly favorable in aggregate. The there there were some impact in the quarter, though, from onetimers that I'd call out for you. One, there was a favorable risk adjustment of about $300,000,000 related to 2024 plan year.

[Brian Newman, EVP & CFO at CVS Health]

Additionally, we had some favorable net PYD. Those two were largely offset or largely offset the impact of our group MAPDR, which came in at $470,000,000 And if you strip out those underlying items, the HEB business beat by about $05,000,000,000 in the quarter, which is a strong performance. The beat itself was primarily driven by Medicare, particularly from individual Medicare, and the two components were Part D and supplementals. And then I would just remind you, as we're thinking about the back end of the year, Part D continues to track modestly ahead of expectations, but we're maintaining a cautious outlook until we have more experience given the changes in the plan liability from the IRA. So Steve, maybe I'll turn it over to you for some more color.

[Steve Nelson, EVP & President - Aetna at CVS Health]

Sure. Thanks, Brian. And Lisa, thanks for your question. So I'll provide maybe a few high level comments about Aetna overall and then get into some specifics relative to the line of business, each line of business. Look, our priorities, as Brian stated, David said in his prepared remarks, remain absolutely unchanged.

[Steve Nelson, EVP & President - Aetna at CVS Health]

We're focused on returning Aetna to its target margins and, frankly, a leadership position in the industry. Really encouraged by the strong progress in the quarter, in the first half of the year in totality. And while it's it's early, it's a multiyear journey here. And all respect to the environment that we're in, very, very encouraged how how the quarter is playing out. There's many drivers of that progress, and maybe I'll highlight just a few.

[Steve Nelson, EVP & President - Aetna at CVS Health]

One is the Medicare business, which I'll come I'll come back to, as Brian mentioned. But, also, we've significantly strengthened our our operations and our fundamental capabilities, which allows us to have better insight into our trends and then actually be able to take take action against those trends. So very happy with how we've improved the operations and just our fundamental capabilities. And then we have increased management rigor overall. We remain incredibly disciplined whether it comes to pricing or, you know, just how we think about the business overall relative to our our clear priority.

[Steve Nelson, EVP & President - Aetna at CVS Health]

And we've developed a culture of relentless execution and focus. And so that's all playing out nicely and really encouraged by those results. I I also, yeah, am very proud of the the management team and our colleagues. We've added. We've strengthened our management team, and I really appreciate how the leadership and and our colleagues have come together and just really pouring everything they have into serving our members, partnering with our providers in increasingly innovative and distinctive ways as as David mentioned.

[Steve Nelson, EVP & President - Aetna at CVS Health]

Relative to Medicare specifically, there's several key points I'd like to make that have contributed to the progress of that business and the year to year improvement. One is we have really strong STARS for payment year 2025, and that's a result of returning to a leadership position in in STARS as as our enterprise has focused on STARS and brought the unique and diverse set of capabilities to to impact STARS. And so that that has contributed nicely to the year over year improvement and progress. Also, the moves that we made, not only in the biz, but during AEP to rationalize the products and geographies. So we had an optimal mix of membership, and that is playing out again nicely as we as we think about the moves we've made during AEP.

[Steve Nelson, EVP & President - Aetna at CVS Health]

And then lastly, we've I'm really pleased with the execution and the insights around trend, understanding it, and then mitigating it honestly to the extent that we can where we have opportunities to do that. So and the PDP product, as as Brian mentioned, is is performing well as in addition to that. So individual Medicare business has has shown a lot of progress and and very encouraged by that. The group business, as Brian mentioned, we we did we have seen pressure there. But as we approach 2026, the good news is half that business is up for renewal, and we're taking very disciplined approach to renewing that business.

[Steve Nelson, EVP & President - Aetna at CVS Health]

And we're getting some traction there. And and, really, I I see the entire Medicare business coming together and and and con continuing the momentum through the back half of the year and into 2026 as we think about returning that business to target margin. In terms of Medicaid, that business is also in line with our expectations. Despite the higher trend we see, it is in line with our expectations. And and then, frankly, the execution around our rate advocacy has been, you know, really strong.

[Steve Nelson, EVP & President - Aetna at CVS Health]

We've seen good engagement with our state partners, and that's, again, tracking to our expectations, including the higher higher acuity that we've seen. IFP, we've talked about, took a PDR earlier in the year, elevated trends, but that's incorporated in our outlook. But I just wanna give you a quick update on the exit. So as we wind down that that business, that's that's going really well. We've had very positive conversations with our states.

[Steve Nelson, EVP & President - Aetna at CVS Health]

We've notified all our members. We continue to provide coverage for them, and and we'll we'll focus on that. But we're we're exiting that business, and and that wind down is is going really well. And last, I'll just finish by saying our commercial business is strong. We've seen some really nice wins in our self insured across public and labor, national accounts, and our maritime business.

[Steve Nelson, EVP & President - Aetna at CVS Health]

Fully insured, we do see elevated trends. We saw that early. We took a disciplined pricing approach to that in 2025, which has pressured membership, but we're gonna stay disciplined in our pricing approach to fully insured. But overall, commercial business strong, and it is a platform for innovation. And that's resonating really well with our with our very sophisticated and demanding clients.

[Steve Nelson, EVP & President - Aetna at CVS Health]

So really, really pleased with that. So, look, overall, it's early. A lot of respects for the environment that we're in, but very encouraged about the progress, not just for the quarter, but the foundation that we're laying as we think about the back half of '25 and also heading into '26 and beyond.

[Operator]

Our next question will come from Justin Lake with Wolfe Research. You may now unmute your audio and ask your question.

[Justin Lake, Analyst - Healthcare Services at Wolfe Research, LLC]

Thanks. Good morning. Wanted to get your early view on 2026 headwinds and tailwinds, specifically your thoughts on expectations for continued improvement in MA margins post your putting in your 2026 bids, your thoughts on the sustainability of outperformance and share gains in the pharmacy business versus your long term expectation of mid single digit OI declines? And then lastly, potential for improvement in the value based care business versus current losses. Thanks.

[David Joyner, Director, President & CEO at CVS Health]

Yes. Justin, thanks for the question. I think we're early yet in terms of forecasting or or giving guidance on on '26. So at this time, you know, I I think there's obviously strength in '25. We feel good about the progress that we're making, and the plan is is to, by end of year, give you more perspectives and insights in terms of how we're how we're looking at at '26.

[Operator]

Our next question will come from Steven Baxter with Wells Fargo. You may now unmute your audio and ask your question.

[Stephen Baxter, Senior Equity Research Analyst at Wells Fargo]

Hi. Thanks. Just wanted to to check-in on the group MA margins. I was wondering where this PDR places margins for the business in 2025. And then appreciating the commentary on repricing, just can you remind us when you're repricing Group MA, are you expecting to get all the way back to target margins for that 50% cohort in a single cycle?

[Stephen Baxter, Senior Equity Research Analyst at Wells Fargo]

Or does it take longer than that due to the magnitude of dislocation? Thank you.

[David Joyner, Director, President & CEO at CVS Health]

So, Steve, I'll let you take that.

[Steve Nelson, EVP & President - Aetna at CVS Health]

Okay.

[Steve Nelson, EVP & President - Aetna at CVS Health]

Good morning, Steven. Steve Nelson. I I think that specifically regard to your question around group MA and the renewal process and, you know, how that plays out, there are these contracts are typically three to five year contracts. And so we are taking a very disciplined approach to renewing the business also as we consider new business, and we are contemplating the elevated trends as we go through that process with them. So it typically as with any of these businesses, you the the absolute objective is to write the business so it achieves target margin.

[Steve Nelson, EVP & President - Aetna at CVS Health]

Sometimes it takes, you know, more than one cycle to get there. So that's how we think about it. And, actually, very optimistic, I would say, about, you know, that business. It plays an important role in our enterprise, the commercial business synergy across with our with our Caremark business. So it's an important piece of business, and we take it serious, and it it serves our these really important clients in an important unique way.

[Steve Nelson, EVP & President - Aetna at CVS Health]

So but it's it needs to perform at target margins, so we certainly take that into account as we think about it.

[Operator]

Our next question will come from George Hill with Deutsche Bank. You may now unmute your audio and ask your question. George, if you would like to unmute your audio and ask your question.

[George Hill, MD & Equity Research Analyst at Deutsche Bank]

Can you hear me now? I apologize. New to the format here. And, Brian, welcome to the call. My question was about the outlook Good to have you.

[George Hill, MD & Equity Research Analyst at Deutsche Bank]

My outlook was about the pharmacy segment outlook for the back half of the year. Maybe could you break out if there's any changes in the vaccine outlook, Talk about the impact of reimbursement stabilization and maybe the impact of the Rite Aid file buys, and are there any other moving pieces we should consider? And kinda should we think about this performance as sustainable? Thanks.

[Brian Newman, EVP & CFO at CVS Health]

So so from a a guide perspective, Prem, do you wanna talk about the business, and I'll talk about the numbers?

[Prem Shah, EVP & Group President at CVS Health]

Yeah. Sure. So thanks for the question. So first off, really strong performance in our PCW business, and we continue to be focused on the strategy we laid out at Investor Day a few years ago. And so if you think about what we've done, we focused on strong service levels in our business, and we continue to be American's leading pharmacy and community destination for pharmacy because of that strong execution and the consumer trust we've we've been able to gain with our 200,000 plus colleagues that we have.

[Prem Shah, EVP & Group President at CVS Health]

Our results reflect our strength. If you think about our top line growth of 12.5% and AOI increased about 7.6% in the quarter. It's reflective of where we've been focused. On the pharmacy side of that business, you know, we saw a strong script comp growth of around 6.5%, and that's primarily driven by a few factors. One is the innovation and, you know, our continued strong service levels, but also from the market disruption we've seen from other pharmacies closing.

[Prem Shah, EVP & Group President at CVS Health]

And lastly, you know, CVS cost advantage, we're proud to say, as we've said on prior calls, that we've delivered it into the commercial marketplace. All of our contracts are on cost advantage, and they're performing in line with our expectations. And then, you know, as as we've said before or as we've seen in this quarter in front store, we continue to improve as we grow our customer base from market disruption as well as our retail share gain. So, you know, this is all really, you know, of part of our long term strategy. But lastly, all of this is powered by our technology advancements and our strong operating model we have underlying this business to really focus on consumers and driving their needs in the 9,000 plus local community destinations we have.

[Brian Newman, EVP & CFO at CVS Health]

So maybe I'll just comment on on the guide as a follow-up to Prem's comments. As he mentioned, the strong volumes, impressive with the strong script growth, 6.5, and the strong front front store sales of 3.5%, albeit some of the front store sales, as we look at the modeling, 1% of that was due to the Easter holiday. But net net, very encouraged to see it it flowing through. We started the year with a guide of of down five. We're now at about down 1.6.

[Brian Newman, EVP & CFO at CVS Health]

Keep in mind that the business has been pressured for for some time, well over a decade if you pull out the COVID. So I would say from a guide perspective, taking a cautious stance on the consumer dynamics and spending piece, and then we'll continue to watch immunizations as they remain dynamic and think about the potential for lower market demand in that business.

[David Joyner, Director, President & CEO at CVS Health]

And and maybe just one addition over the top here. This has been a multiyear effort, so the results is not by accident. We've we've focused, as Prem said, on building out the technology to make the pharmacies more efficient and work better for our colleagues and work better for the members that that we're serving. So I couldn't be happier with the innovation and the progress that we're making and feel really excited about welcoming the the new Rite Aid customers that you know, in the back half of the year.

[Operator]

Our next question will come from Elizabeth Anderson with Evercore. You may now unmute your audio and ask your question.

[Elizabeth Anderson, Senior MD at Evercore]

Hi, guys. Good morning. Welcome, Brian. Thanks so much for the question. You know, maybe following up on that a little bit, as we think about what you said in terms of moving CostVantage into the government business next year, I mean, maybe there's potentially some three forty p impact.

[Elizabeth Anderson, Senior MD at Evercore]

How do we think about the sort of reimbursement landscape, like, as it stands now for 2026? Do you think you can sort of see generally flat reimbursement, like, all else equal, or sort of other puts or takes to think about, as we're at this point, which obviously is is still on the early side.

[David Joyner, Director, President & CEO at CVS Health]

Prem?

[Prem Shah, EVP & Group President at CVS Health]

Yeah. Thanks, Elizabeth, for the question. And, you know, just a little bit background on CVS cost management, just to remind folks again, you know, we we started this process to really solve a few things. One is we wanted to get a sustainable, durable pharmacy model that shifted reimbursement to align more closely with the underlying cost of the business and the underlying cost of the drug. And, you know, one of the challenges this industry has faced over the last decade is the cross subsidization that existed across Scripps.

[Prem Shah, EVP & Group President at CVS Health]

So what cost advantage does is it brings a more stable environment, gives more predictability to payers, allows them to get greater transparency, and provides that value to them sooner in a much more transparent way. And so, you know, to answer your question, where are we today? In 2025, as you said, it was a transition year. We were deliberate. We worked very closely with all the payers to transition the commercial business onto our cost manage program.

[Prem Shah, EVP & Group President at CVS Health]

As you look out to next year, you know, we'll continue to focus on our government programs and to move them as well into these cost based models as we go forward. We feel good about where we are as it relates to that that transition. And as we said prior, over time, we expect that the reimbursement erosion, which was one of the primary headwinds that we faced in the retail pharmacy business, will equal the cost of goods improvement to drive a more sustainable and durable marketplace. So we continue to make progress against that. You know, we're midyear.

[Prem Shah, EVP & Group President at CVS Health]

We do these contract negotiations throughout the year for payers, and we'll update you at a later time. But we feel good about where we are with CostManage, and, you know, we feel good about the value that we're delivering to the payers across the country to create a more predictable model that can lower cost for them and their clients.

[David Joyner, Director, President & CEO at CVS Health]

Yeah. And, Elizabeth, maybe just one other thing in terms of the innovation that we're driving around the pricing model. So this is not just being executed and delivered in the in the retail setting. The PBM, Caremark, is also driving new price models to remove the cross subsidies and some of what I think is the the inefficiencies in the in the pricing of the the products today. So I think if you have parallel paths and you and the market begins to move, you'll begin to see a more rational pricing structure across the market.

[Operator]

Our next question will come from Andrew Muck with Barclays. You may now unmute your audio and ask your question.

[Andrew Mok, Director at Barclays]

Hi. Good morning. Can you help reconcile your favorable Medicare results in the HCP segment with the unfavorable results, you're seeing at Oak Street? Is the pressure coming more from internal or external MA members, and are there any benefits or cost categories you would call out as driving the elevated pressure in Oak Street? Thanks.

[David Joyner, Director, President & CEO at CVS Health]

Yeah. Thanks, Andrew. I I think the the first first point is that they're they're different books. So the the acuity and or the the mix of members are very different across Aetna's larger book versus the concentrated more higher risk population inside of inside of Oak Street. So let me maybe let Brian speak a little bit to, you know, to the to the nuances between the two, and if I could have Prem speak more broadly to the Oak Street.

[Brian Newman, EVP & CFO at CVS Health]

Yeah. Thanks, David. The the elevated we're we're seeing elevated trends across MA broadly, and and I don't think there's a direct comparison between Aetna and the the Oak Street book for for a few reasons. One, as David started to mention, there's different populations. Aetna's large, more diverse from a member base.

[Brian Newman, EVP & CFO at CVS Health]

Oak Street is smaller, skews higher acuity. We also need to remember that Aetna members, they represent an increasing but but still a minority of total patients at Oak. And so not all health plans have pulled back on benefits in '25 to the same extent that that that Steve and the Aetna team have done. So as David mentioned, value based care, it remains a critical component to our strategy, providing better experiences, better outcomes, lower cost. And and I think, Prem, you can talk to Oak Street's care model being best in class.

[Prem Shah, EVP & Group President at CVS Health]

Yeah. Absolutely. So, you know, as as Brian and David said, you know, we saw some pressure inside of our, health care delivery business. That was driven by, you know, what I'd say, in Oak Street, persistent elevated medical cost, the member mix that we had, and then the more robust benefit or supplemental benefit offerings that that plans provided to their members. And this was partially offset by strong performances signified driven by in home assessment volumes.

[Prem Shah, EVP & Group President at CVS Health]

If you look at Oaktree specifically, you know, we're focused on addressing the market dynamics while strengthening the business and improving the financial performance over the short and long term. And, you know, what what I'd say is there's four areas that we're really focused on. One is we've put in place a strong leadership team with new leaders that have deep rooted experience in value based care and population health management. Two, we continue to look at the technology stack and the operations to provide, you know, the leading clinical solution from a technology perspective for our business. And we focus you know, that that has to drive to better medical cost management.

[Prem Shah, EVP & Group President at CVS Health]

Oak Street was one of the best large scale clinical programs out there for value based care. We continue to look at how we're gonna leverage our tech stack to drive that even further. And then lastly, we're going to take a thoughtful approach to center expansion while prioritizing patient growth inside of those centers. And so from my perspective, we remain committed to value based care. It's an important part of our health care system, and we've been really intentional in our strategy to focus on assets with a proven track record like Oaktree in delivering improved quality and experience while managing cost.

[Operator]

Our next question will come from Eric Percher with Nephron Research. You may now unmute your audio and ask your question.

[Eric Percher, Research Analyst - Pharma Supply Chain & Digital Health at Nephron Research LLC]

Thank you. I'll stick with health services. And, Brian, a similar visibility question as you addressed on HCB earlier. It's proven harder to draw a line in the sand on delivery HBR. Can you speak to visibility at this point of the year and maybe how much of the $200,000,000 headwind was first half versus expectation for any improvement in the second half?

[Eric Percher, Research Analyst - Pharma Supply Chain & Digital Health at Nephron Research LLC]

And then for the team, I know there's no change in pharmacy services, but could you speak to the customer price improvements? And are you seeing more cost to retain this high nineties retention level?

[Brian Newman, EVP & CFO at CVS Health]

Sure, Eric. Thanks very much for the the question. I as I mentioned in the prepared remarks, we we are seeing pressure in in HCD, specifically, and and I think it's driven by the higher medical benefit ratio, that's attributed to elevated medical costs, member mix, more robust benefit offerings. As we think about and some of that was offset by the solid performance of Signify, as Prem had mentioned a few minutes ago. But as we think about the guidance reduction in the segment, it's all coming out of HCD.

[Brian Newman, EVP & CFO at CVS Health]

And as we think about the revised expectations for the second half of the year, we think we've captured a trend. And as I sit here today, I would say HSS earnings distribution, as you look at the back half versus this versus the front half, two h is roughly evenly split between the two quarters from a from a cadence perspective, probably with a slight tilt towards four q from a profit perspective. Prem, did you wanna

[David Joyner, Director, President & CEO at CVS Health]

Yeah. So maybe, Prem, if you can speak a little bit to the selling season and and how the PBM is performing.

[Prem Shah, EVP & Group President at CVS Health]

Yeah. Thanks, Eric, for for the question. So we're really pleased with the strong start to the 2026 PBM selling season. You know, Caremark continues to be well positioned as the leader in the PBM in the marketplace. And, you know, what I'd say is we're continue continue to be focused on driving our what our clients value the most, which is making prescriptions and pharmacy costs more affordable and lowering the cost by increasing competition.

[Prem Shah, EVP & Group President at CVS Health]

And, you know, on the kind of retention side, we're on track with where we normally are with our historical upper 90% retention rate. And, you know, the PBM industry has always been competitive. We remain to have the same discipline we've always had in our pricing and in the marketplace. But what I'd say is, you know, as we talk to our customers and as we're out in the marketplace, what's really resonating is our approach, our transparency, and in the way in which we are continuing to create the competition. And, you know, some of those great examples are over the course of the last couple of years with, for example, we we led the way in Cordat with Cordavis in the biosimilar marketplace, and we're leading the way this year on 07/01 with the competition we've increased in the indication of weight loss on GLP-one.

[Prem Shah, EVP & Group President at CVS Health]

So we continue to focus on what our clients need most, which is lowering the cost and making prescriptions more affordable in the country. And, you know, from our perspective, it's resonating in the selling season. It's resonating in our retention rates.

[Operator]

Our next question will come from Erin Wright with Morgan Stanley. You may now unmute your audio and ask your question.

[Erin Wright, Senior Equity Research Analyst - Healthcare at Morgan Stanley]

Great. Thanks. I'm curious that your thoughts on the Part D space and and how that's playing out kind of relative to plan, how you think about kind of the demo and the c CMS announcement more recently on that front and how you're thinking about that into next year. And maybe we don't have enough visibility yet on that, but but wanna see how that's playing out in terms of behaviors, in terms of utilization trends, and what you're seeing across Part D.

[David Joyner, Director, President & CEO at CVS Health]

Alright. Steve, would you take that, please?

[Steve Nelson, EVP & President - Aetna at CVS Health]

Sure. Thanks. Good morning, Aaron. So our as I mentioned earlier, our Part d plans are performing really well year to date, and that's a result of some deliberate actions and decisions we we made to position the product for the long term. So we we deliberately wanted to derisk this with the with the shifts in the in the IRA and some of the policy things as put more risk and more cost to the health plan.

[Steve Nelson, EVP & President - Aetna at CVS Health]

So we reduced our plan offerings, eliminated the enhanced plans, so we just have one standard plan. And that has changed through the the mix, and then we also made some design changes. So overall, in '25, the business is is performing well. But as expected, that that did have some membership implications. So, know, you we can we think that'll continue to play out a bit, but not as not as much as as we lost in the first half of the year.

[Steve Nelson, EVP & President - Aetna at CVS Health]

But this is all with the eye towards returning our business to target margins and creating a sustainable product. And so as we've contemplated 2026, we took that same approach, and our bids focused on ensuring the sustainable product for 2026 and beyond. Now we just got the the guidance from CMS earlier this week. We're still digesting that, and we really won't have more insight into that until we kinda get through our process. And, obviously, the entire competitive landscape impacts how we think about it as well.

[Steve Nelson, EVP & President - Aetna at CVS Health]

So more to come there. But, again, you know, our that that that, those products, Part D, are performing well for us, and we're gonna continue to make sure that we, make decisions and, to to create that and continue that sustainability.

[Operator]

Our next question will come from John Ransom with Raymond James and Associates. You may now unmute your audio and ask your question.

[John Ransom, MD & Director - Healthcare Research at Raymond James Financial]

Hey. Good morning. I'm I'm proud of myself for this understanding this new process. My my question is, and and I know this is a small part of the business, but, yeah, the front end, part of the drug retail business has been a struggle for the industry for probably as long as I've been covering it, which is forever. I I just wonder as you kinda look through your, you know, your business strategies, what what are we doing differently?

[John Ransom, MD & Director - Healthcare Research at Raymond James Financial]

And I am intrigued that you're back in the business of even buying drugstores. But what's what's the long term strategy to to address sort of the competitive pressures and the competitive position of the front end? Thanks.

[Prem Shah, EVP & Group President at CVS Health]

Yeah. John, thanks for the question. And and look, we we have a very solid front end business, and we've been focused on it with a very strong management team and been deliberate with how we're thinking about that business. So as you saw in this quarter, we saw our trip comp increase about 2.7% from LY, and we continue to see, you know, retail share gains, which is new for this part of the business, you know, if you look at it over a longer duration of period. So the strategy we have in place is, one, how do we create more value for consumers in the offerings that we have, how do we continue to work with our vendors to help reduce the cost so we can provide that value upfront.

[Prem Shah, EVP & Group President at CVS Health]

And then secondly or I'd say thirdly is how do we get more consumers and foot traffic into our stores and be there. And so we're benefiting from some of the, what I'd say, is adjacency to pharmacy as it relates to that, meaning that we'll as we get more and more pharmacy patients, they utilize our front store services. Second, we've been focused on our consumer, what I'd say, marketing efforts and other ways in which we're bringing those customers into our stores and continue to drive that value, the value price equation. So I'm really impressed with the progress we're making on our front store. We continue to gain traction.

[Prem Shah, EVP & Group President at CVS Health]

The leadership team has been focused about this. And you're right, John. We don't spend enough time on these calls on that, but it is an important part of our business and something we're really focused on. We've been very deliberate on how we turn that around over the over the you know, into the future.

[Operator]

Our last question will come from Brian Tanquilut with Jefferies. Please now unmute your audio and ask your question. Brian, you may now unmute your audio and ask your question. If you can press 9 to unmute yourself.

[David Joyner, Director, President & CEO at CVS Health]

Okay. So, operator, it looks like we're we're challenged with the last question. So I think we're we're at close. And as I think about before I end this call, I I just wanna thank the 300,000 dedicated colleagues for the work that they do every day. It's because of you, I'm confident in our future and our ability to become America's most trusted health care company.

[David Joyner, Director, President & CEO at CVS Health]

Also wanna thank everyone for joining this call today, and we're extremely excited about the progress and look forward to providing you additional updates. And I also wanna make an announcement that our plan is to have an Investor Day on December 9 and more details to follow. So thank you for the call today.

[Operator]

Thank you for joining CVS Health's second quarter twenty twenty five earnings call. This concludes today's conference call. You may now disconnect.

Participants

Executives

• Larry McGrath, EVP, Chief Strategy Officer & Chief Strategic Advisor to the CEO
• David Joyner, Director, President & CEO
• Brian Newman, EVP & CFO
• Steve Nelson, EVP & President - Aetna
• Prem Shah, EVP & Group President

Analysts

• Lisa Gill, Managing Director at JP Morgan
• Justin Lake, Analyst - Healthcare Services at Wolfe Research, LLC
• Stephen Baxter, Senior Equity Research Analyst at Wells Fargo
• George Hill, MD & Equity Research Analyst at Deutsche Bank
• Elizabeth Anderson, Senior MD at Evercore
• Andrew Mok, Director at Barclays
• Eric Percher, Research Analyst - Pharma Supply Chain & Digital Health at Nephron Research LLC
• Erin Wright, Senior Equity Research Analyst - Healthcare at Morgan Stanley
• John Ransom, MD & Director - Healthcare Research at Raymond James Financial