CVS Health Sees Solid Q2 Results, Raises 2022 Guidance

Revenue increases across all segments bolster company’s performance
Emily Crowe
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CVS Health had a strong second quarter, partially buoyed by its sale of health savings account arm PayFlex Holdings.

Revenue growth among all of its business segments helped CVS Health achieve strong second quarter performance and prompted the company to raise its full-year guidance. For the three months ended June 30, CVS saw total revenues increase to $80.6 billion, up 11% from the second quarter of 2021.

The company’s operating income increased 5.6% for the quarter, primarily due to a pre-tax gain on the sale of its health savings account arm PayFlex Holdings, Inc., which closed June 1. Adjusted operating income was down $77 million compared to the same quarter in 2021 and was largely offset by increases in the company’s health care benefits and pharmacy services segments.

“Despite a challenging economic environment, our differentiated business model helped drive strong results this quarter, with significant revenue growth across all of our business segments,” said CVS Health President and CEO Karen S. Lynch. “The continued success of our foundational businesses accelerated our strategy to expand access to health services and help consumers navigate to the best site of care. We remain a trusted community health destination for millions of individuals with health products and services that engage customers in all aspects of their health wherever and whenever they need it.”

CVS further saw total revenues in its health care benefits segment increase 10.9% for the second quarter, compared to the prior year, driven primarily by growth across all product lines. That business segment offers a range of insured and self-insured medical, pharmacy, dental and behavioral health products and services.

Total revenue for the pharmacy services segment was up 11.7% for the quarter and the retail/TLC segment saw a revenue rise of 6.3%. The company raised its full-year 2022 diluted EPS guidance range to $7.23 to $7.43, up from $6.93 to $7.13. The full-year 2022 adjusted EPS guidance range was also raised to $8.40 to $8.60 from $8.20 to $8.40.

Last month, CVS Health made the decision to leave the National Association of Chain Drug Stores (NACDS). “While we have made the decision to step away from the association, we are fully committed to advancing and supporting the value of pharmacy and the critical role that pharmacists play as healthcare providers in their communities,” CVS spokesperson Matt Blanchette told Progressive Grocer sister publication Drug Store News in a statement.

With its CVS Pharmacy subsidiary operating almost 10,000 locations nationwide, Woonsocket, R.I.-based CVS Health is No. 7 on The PG 100, Progressive Grocer’s 2022 list of the top food and consumables retailers in North America.

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