10:11 AM EDT, 05/01/2025 (MT Newswires) -- CVS Health ( CVS ) on Thursday raised its full-year earnings outlook as the healthcare company reported stronger-than-expected results for the first quarter.

The company now expects adjusted per-share earnings of $6 to $6.20, up from the prior guidance of $5.75 to $6. The consensus on FactSet is for non-GAAP EPS to rise to $5.92 from last year's $5.42.

CVS' stock was up 7.5% intraday, taking its year-to-date gains to about 60%.

"This update incorporates our first-quarter performance while maintaining a respectful view on medical cost trend and a prudent outlook on various macro factors for the remainder of the year," Chief Financial Officer Thomas Cowhey said during an earnings call, according to a FactSet transcript.

For the three months through March 31, adjusted EPS jumped to $2.25 from $1.31 a year earlier, well above analysts' $1.70 estimate. Revenue climbed 7% year on year to $94.59 billion, topping the $93.66 billion consensus view.

Revenue in the pharmacy and consumer wellness segment advanced 11% to $31.91 billion, underpinned by pharmacy drug mix and increased prescription volume. The health services segment rose 7.9% to $43.46 billion amid growth in specialty pharmacy and brand inflation.

The health care benefits division grew 8% to $34.81 billion, buoyed by gains in the Medicare product line. The segment's medical benefit ratio, which measures medical costs as a percentage of premium revenue, moved to 87.3% in the quarter from 90.4% a year earlier.

"Outperformance on the medical benefit ratio remains one of the largest potential factors that could drive us higher in our adjusted EPs guidance range," Cowhey told analysts.

The company remains cautious for the rest of the year. "We are closely monitoring the potential for a softening consumer environment and the implications of tariffs, as well as potential changes in consumer sentiment towards vaccines that may impact market demand," Cowhey said.

Last month, US President Donald Trump announced sweeping new tariffs on imports, including from China. Trump later declared a 90-day pause on certain duties for non-retaliating countries, though Washington and Beijing have since been in a deadlock.

Price: 71.96, Change: +5.25, Percent Change: +7.87