CVS Health Corp raised its full-year adjusted profit forecast on Wednesday after stronger pharmacy revenues helped offset a massive $5.73 billion writedown tied to its healthcare divisions, including MinuteClinics, Oak Street Health, and Signify Health.
The company, which runs one of the largest U.S. pharmacy chains alongside Aetna insurance and Caremark PBM (Pharmacy Benefit Manager), reported a net loss of $3.13 per share for the third quarter ended September 30, 2025, as the impairment weighed heavily on results.
Writedown and restructuring details
The $5.73 billion charge primarily reflects a restructuring of Oak Street Health, a primary care network, and the diminished value of Signify Health, which provides home-based healthcare services. Both businesses focus on the Medicare segment, which has faced mounting pressure due to higher medical costs and reimbursement changes from the U.S. government.
CVS also booked an $83 million charge for the closure of 16 Oak Street clinics and announced plans to scale back new clinic openings in 2026 and beyond.
CEO David Joyner said the decision reflected a pragmatic shift in the company’s growth approach.
“We are taking a cautious and prudent look in terms of where healthcare trends have been and where we expect them to continue to be elevated as we head into 2026,” he said.
Joyner added that the company’s outlook benefited from new customers gained through its acquisition of Rite Aid’s assets and growth in the Caremark PBM business.
Earnings performance and guidance
Despite the heavy writedown, CVS delivered its fourth straight quarterly earnings beat, reinforcing the turnaround strategy initiated last year. The company credited improved pharmacy performance, disciplined cost management, and integration of its healthcare acquisitions for the resilient results.
Joyner emphasized that CVS remains focused on long-term growth while carefully managing risks in its health insurance and healthcare delivery segments.
“Our thesis for that business was that we were going to grow, and then we were going to be driving the patient growth inside the business. The markets changed,” he noted.
Industry context
CVS’s challenges mirror those of peers like UnitedHealth Group, as rising medical service costs and policy shifts reshape the Medicare landscape. However, its diversified portfolio — spanning retail pharmacies, insurance, and pharmacy benefit management — continues to provide revenue stability.
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