CVS Health Stock Rallies After Second-Quarter Earnings Beat

CVS Health shares jumped more than 5% in pre-market trading on Monday following the release of second-quarter results that showed adjusted earnings well above analyst expectations. The company reported GAAP diluted EPS of $0.80, pressured by one-off litigation charges, but delivered adjusted EPS of $1.81, surpassing forecasts of $1.46.

CVS attributed the strong performance to ongoing cost-cutting measures and investments in automation and AI. The firm’s $2 billion annual savings initiative, including workforce reductions and robotics deployments, helped offset regulatory headwinds and drove margin improvements in its high-margin healthcare services.

Analysts responded positively, with several firms upgrading their ratings. Leerink Partners reiterated a “Buy” rating, while the consensus among 15 analysts shifted to a “Strong Buy,” reflecting an average price target of $83.60-approximately 14 percent above current levels.

Looking ahead, CVS raised its full-year revenue guidance to at least $391.5 billion and projected $7.5 billion in cash flow from operations for 2025, underscoring management’s confidence in normalized earnings growth and long-term resilience.