By Sadiq Al Gobahi 
CVS Health has released its third-quarter 2024 earnings report, revealing mixed results as the company grapples with higher medical costs. The company reported total revenues of $95.4 billion, a 6.3% increase compared to the same period last year2. However, the earnings per share (EPS) saw a significant decline, with GAAP diluted EPS at $0.07 and adjusted EPS at $1.09, compared to $1.75 and $2.21, respectively, in the prior year.
The decline in earnings was primarily due to increased medical costs, particularly in the Health Care Benefits segment. CVS Health recorded premium deficiency reserves of approximately $1.1 billion, reflecting anticipated losses in the Medicare and individual exchange product lines2. Despite these challenges, the company’s pharmacy and insurance units showed growth, contributing to the overall revenue increase.
CEO David Joyner, in his first earnings report since taking the helm, emphasized the company’s commitment to delivering lower-cost care, a simpler experience, and better outcomes for its customers. CVS Health also announced the appointment of Steve Nelson as the new president of its health insurer, Aetna, and expanded the role of longtime executive Prem Shah to oversee the company’s retail pharmacy, pharmacy benefits, and health care delivery businesses1.
The company’s strategic review, which included layoffs, write-downs, and the closure of 271 retail stores, aims to cut $2 billion in expenses over the next several years. CVS Health expects elevated medical costs to continue to pressure its performance this year and has decided not to provide a formal outlook at this time1.
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