CVS Health Corp (NYSE:CVS) shares rose about 6% on Wednesday morning after the retail pharmacy chain reported first quarter financial results that topped Wall Street expectations on both earnings and revenue.
The company posted adjusted earnings per share (EPS) of $2.57, compared with analyst estimates of $2.21.
Revenue came in at $100.4 billion, ahead of the expected $95.02 billion and up 6.2% year-over-year.
CVS attributed the stronger performance primarily to improved results in its Aetna health insurance business, which benefited from continued progress on its margin recovery plan.
Adjusted operating income in the Health Care Benefits segment was a key driver of year-over-year growth in profitability.
"CVS Health continues to provide what people want most from health care: a connected, convenient, cost-effective engagement experience across our unique collection of businesses,” CVS Health CEO David Joyner said in a statement.
Reflecting the stronger-than-expected quarter, CVS raised its full-year 2026 guidance. The company now expects adjusted EPS of $7.30 to $7.50, up from a prior range of $7.00 to $7.20. GAAP diluted EPS guidance was also increased to $6.24 to $6.44 from $5.94 to $6.14.
In addition, CVS lifted its cash flow from operations outlook to at least $9.5 billion, up from at least $9 billion previously.
CVS said gains in both its Health Care Benefits and Pharmacy & Consumer Wellness segments supported the upgraded forecast, while ongoing execution of its insurance margin recovery strategy continued to underpin earnings momentum.
Despite the improved outlook, the company noted it is maintaining a cautious view for the remainder of the year, citing continued elevated cost trends and potential macroeconomic headwinds.