CVS Health Corporation (CVS) Q4 2025 (USD): EPS 1.09 (exp. 1.00), Revenue 105.7bln (exp. 103.67bln)

• Adj. EPS of 1.09 decreased from 1.19 Y/Y, primarily due to a decline in adj. operating income in the Health Care Benefits segment, reflecting changes in the seasonality of the Medicare Part D programme due to the impact of the Inflation Reduction Act.
• Q4 MBR 94.8%, remained consistent with the prior year, as improved underlying performance in the Government business was offset by changes in the seasonality of the Medicare Part D programme
• MBR decreased to 91.2% in FY (vs 92.5% Y/Y), primarily driven by improved underlying performance in the Government business and higher favourable prior year development.
• Medical membership 26.6mln (decreased 112,000 members vs Q3) reflecting declines in the individual exchange product line, partially offset by an increase in Commercial ASC membership.
• FY medical membership decreased 504,000 Y/Y reflecting declines in the individual exchange and Government product lines, partially offset by an increase in Commercial ASC membership.

• FY EPS view 7.00-7.20 (exp. 7.18)

CVS Health's Q4 earnings report beat expectations on both EPS and revenue, indicating a solid performance despite a year-over-year drop in adjusted EPS driven by the Medicare Part D adjustments related to the Inflation Reduction Act. While the short-term metrics, such as medical membership, show some decline, the FY guidance suggests stability, as the outlook aligns closely with market expectations. Investors will likely focus on how these headwinds in the health benefits segment play into broader trends and potential implications for future earnings growth.