CVS Health Beats Expectations with Strong Earnings, but Stock Drops on Slashed Outlook

CVS reported third-quarter earnings and revenue that exceeded expectations, driven by strong performance in its health services business. The company's sales reached $89.76 billion, up 11% from the same period last year, with net income of $2.27 billion. CVS lowered its full-year unadjusted earnings forecast but maintained its adjusted earnings guidance. The results come amid a nationwide walkout by pharmacy staff protesting working conditions. CVS has been focusing on transforming into a healthcare company and recently made significant acquisitions in the healthcare sector. The health services segment, including specialty pharmacy services, contributed to the revenue growth, while the pharmacy and consumer wellness division also saw an increase in sales. Same-store sales grew in the pharmacy division but declined in the front of the store due to reduced purchases of over-the-counter Covid tests. CVS's health insurance segment also performed well, with increased revenue and a higher medical benefit ratio.