CVS Health Corp ( CVS ). on Tuesday reported fourth-quarter fiscal 2025 results.

The company reported sales of $105.69 billion, beating the consensus of $103.59 billion. Total revenues increased 8.2% year-over-year, driven by revenue growth across all segments.

Adjusted earnings of $1.09 per share also beat the analyst estimate of 99 cents, decreased from $1.19 in the prior year, primarily due to a decline in adjusted operating income in the Health Care Benefits segment, reflecting changes in the seasonality of the Medicare Part D program due to the impact of the Inflation Reduction Act (IRA).

Adjusted operating income decreased 4.8% to $2.59 billion.

Segment Performance

Revenues in the Health Care Benefits segment increased 10.1% to $36.29 billion, primarily driven by increases in the Government business, largely due to the impact of the IRA on the Medicare Part D program.

Health Services segment (offering pharmacy benefit management) sales increased 9% to $51.24 billion, primarily driven by pharmacy drug mix and brand inflation, partially offset by continued pharmacy client price improvements.

The Pharmacy & Consumer Wellness segment’s sales increased 12.4% to $37.66 billion, driven by pharmacy drug mix and increased prescription volume, including incremental volume resulting from the company’s Rite Aid prescription file acquisitions, partially offset by continued pharmacy reimbursement pressure and the impact of recent generic drug introductions.

Metrics

The Medical benefit ratio of 94.8% in the fourth quarter 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 program due to the impact of the IRA.

Medical membership of 26.59 million decreased by 504,000 members year over year, reflecting declines in the individual exchange and Government product lines, partially offset by an increase in Commercial ASC membership.

Prescriptions filled increased by 6.3% to 473.8 million, primarily driven by increased utilization and incremental volume resulting from the company’s Rite Aid prescription file acquisitions.

Guidance

CVS Health ( CVS ) reaffirmed its fiscal 2026 adjusted earnings guidance of $7.00-$7.20 per share versus the Street consensus of $7.17. The company said the guidance highlights our strong position for 2026.

The company updated its cash flow from operations guidance to at least $9.0 billion from at least $10.0 billion.

CVS sees fiscal 2026 revenue of at least $400 billion versus the consensus of $409.77 billion, with adjusted operating income of between $15.07–$15.41 billion.

CVS Price Action: CVS Health ( CVS ) shares were down 0.32% at $75.53 at the time of publication on Tuesday, according to Benzinga Pro data.