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CVS Health (CVS) is relatively flat after reporting its Q3 results, reaching a new 52-wk high earlier today. The company comfortably beat expectations on both the top-and-bottom line, with revenue increasing 7.8% to a record $102.87 bln. Notably, the company raised EPS guidance yet again to $6.55-6.65, marking the third consecutive upward revision.

• Health Care Benefits revenue increased 9% to $35.9 bln as Aetna's results improved and the segment returned to profitability with better Medicare Advantage execution and pricing resets.
• Health Services revenue increased 12% to $49.27 bln driven by strong specialty pharmacy and growth at Signify while Oak Street remained challenged, leading to slower clinic expansion and some closures.
• Pharmacy & Consumer Wellness revenue increased 12% to $36.21 bln with same-store pharmacy sales up nearly 17% and prescription volume up 9%, supporting further share gains even as reimbursement pressure persists.
• Medical costs remain elevated across the industry, though CVS said trends were modestly better than expected and its MBR improved yr/yr to 92.8%.
• Management highlighted solid momentum into year-end and a better setup for FY26 as insurance continues to recover, PBM contracts reprice, and care delivery profitability improves.

Briefing.com Analyst Insight

This was another quarter of improvement for CVS, with insurance performance a clear positive. There's still work to do with elevated costs and care delivery challenges, but Aetna's progress and solid retail execution are encouraging. Three straight EPS beat-and-raises have helped boost investor sentiment around the turnaround story, but the market still wants to see durability, keeping the reaction more muted for now.