WOONSOCKET, R.I., August 2, 2023 — CVS Health Corporation® (NYSE: CVS) today announced operating results for the three months ended June 30, 2023.
CVS Health reports second quarter results
Key financial data
| Three Months Ended June 30, | |||
|---|---|---|---|
| In millions, except per share amounts | 2023 | 2022 | Change |
| Total revenues | $88,921 | $80,636 | $8,285 |
| Operating income | 3,234 | 4,669 | (1,435) |
| Adjusted operating income(1) | 4,481 | 5,002 | (521) |
| Diluted earnings per share | $1.48 | $2.29 | $(0.81) |
| Adjusted EPS(2) | $2.21 | $2.53 | $(0.32) |
Second quarter highlights
- Total revenues increased to $88.9 billion, up 10.3% compared to prior year
- GAAP diluted EPS of $1.48 and Adjusted EPS of $2.21
Year-to-date highlights
- Total revenues increased to $174.2 billion, up 10.6% compared to prior year
- GAAP diluted EPS of $3.13 and Adjusted EPS of $4.41
- Generated cash flow from operations of $13.3 billion
Note: Financial information for the three and six months ended June 30, 2022 presented above and throughout the full press release which is linked below has been revised to conform with certain current period financial statement changes as described on page 16.
2023 Full-year guidance
- Revised GAAP diluted EPS guidance range to $6.53 to $6.75 from $6.90 to $7.12
- Confirmed Adjusted EPS guidance range of $8.50 to $8.70
- Confirmed cash flow from operations guidance range of $12.5 billion to $13.5 billion
CEO commentary
“Our diversified business model delivered strong results this quarter. We continue to execute on our strategy to expand access to health services across our care delivery channels and strengthen our engagement with consumers to improve their health and well-being.”
— Karen S. Lynch, CVS Health President and CEO
In the spotlight
On May 2, 2023, completed the acquisition of Oak Street Health, a leading multi-payor, value-based primary care company with approximately 600 primary care providers and more than 170 medical centers across 21 states.
In July 2023, announced the launch of Caremark® Cost SaverTM to help lower pharmacy out-of-pocket drug costs for CVS Caremark clients’ members. Through the new program, eligible members will have automatic access to GoodRx’s prescription pricing to allow them to pay lower prices, when available, on generic medications in a seamless experience at the pharmacy counter.
Returned $795 million to shareholders through dividends during the three months ended June 30, 2023.
The information presented above includes both GAAP and non-GAAP financial measures to assist in the comparison of the Company’s past financial performance with its current financial performance. See “Non-GAAP Financial Information” in the full press release, which is linked below, for explanations of the non-GAAP financial measures presented above and reconciliations of each non-GAAP financial measure to the most directly comparable GAAP financial measure.
Please review the entire press release for the quarterly period, which provides important additional information related to our financial results. The full press release can be downloaded here (PDF).
(1) The Company defines adjusted operating income as operating income (GAAP measure) excluding the impact of amortization of intangible assets, net realized capital gains or losses and other items, if any, that neither relate to the ordinary course of the Company’s business nor reflect the Company’s underlying business performance, such as acquisition-related transaction and integration costs, restructuring charges, office real estate optimization charges, losses on assets held for sale, gains/losses on divestitures and opioid litigation charges. The Company uses adjusted operating income as its principal measure of segment performance as it enhances the Company’s ability to compare past financial performance with current performance and analyze underlying business performance and trends. The consolidated measure is not determined in accordance with GAAP and should not be considered a substitute for, or superior to, the most directly comparable GAAP measure, consolidated operating income. See “Non-GAAP Financial Information” in the full press release linked above for additional information regarding the items excluded from consolidated operating income in determining consolidated adjusted operating income.
(2) Adjusted EPS is calculated by dividing adjusted income attributable to CVS Health by the Company’s weighted average diluted shares outstanding. The Company defines adjusted income attributable to CVS Health as net income attributable to CVS Health (GAAP measure) excluding the impact of amortization of intangible assets, net realized capital gains or losses and other items, if any, that neither relate to the ordinary course of the Company’s business nor reflect the Company’s underlying business performance, such as acquisition-related transaction and integration costs, restructuring charges, office real estate optimization charges, losses on assets held for sale, gains/losses on divestitures, opioid litigation charges, as well as the corresponding income tax benefit or expense related to the items excluded from adjusted income attributable to CVS Health and certain discrete tax items. See “Non-GAAP Financial Information” in the full press release linked above for additional information regarding the items excluded from net income attributable to CVS Health in determining adjusted income attributable to CVS Health.
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