NEW YORK, Oct 29 (Reuters) - CVS Health ( CVS ) raised

its annual adjusted profit forecast on Wednesday, aided by

improved pharmacy revenues, but also announced a $5.73 billion

writedown of healthcare businesses including its in-pharmacy

MinuteClinics.

The company, which operates one of the largest U.S. pharmacy

chains, Aetna insurance and the CVS Caremark pharmacy benefit

manager, reported a net loss of $3.13 per share for the third

quarter.

The $5.73 billion writedown also reflects a restructuring of

Oak Street Health, a primary care provider, and diminished value

of Signify Health that offers home-based services.

Both businesses focus on Medicare, the U.S. government

program for older adults and people with disabilities.

Like others in the industry, including those run by

UnitedHealth Group ( UNH ), these Medicare businesses have been

pressured by higher medical services spending and changes in

government reimbursement.

The company raised its forecast for adjusted full-year

earnings growth, a move CEO David Joyner said reflected new

customers acquired from its purchase of the now-shuttered chain

drugstore Rite Aid, and in its Caremark pharmacy benefit

business.

Joyner said in an interview with Reuters that the company

was conservatively managing its risks around its health

insurance and healthcare delivery units.

"We are taking a cautious and prudent look in terms of where

healthcare trends have been and where we expect them to continue

to be elevated as we head into 2026," he said.

Separately, CVS took an $83 million charge to cover the

closure of 16 Oak Street clinics and said it planned to "reduce

the number of new primary care clinics it would open in 2026 and

thereafter".

"Our thesis for that business (was) that we were going to

grow, and then we were going to be driving the patient growth

inside the business," Joyner said. "The markets changed."

BOOKING ANOTHER QUARTERLY BEAT

The earnings performance makes it the fourth consecutive

quarter of CVS beating earnings estimates, solidifying a

turnaround it promised last year after repeatedly falling short

of expectations weighed by medical costs in its insurance

business.

CVS reported an adjusted quarterly profit of $1.60 per

share, above analysts' average estimate of $1.37 per share,

according to data compiled by LSEG.

For full-year 2025, the healthcare conglomerate raised its

adjusted profit outlook to between $6.55 and $6.65 per share,

from $6.30 to $6.40 per share forecast previously.

Analysts were expecting annual adjusted profit of $6.38 per

share.

CVS Health's ( CVS ) Aetna insurance business reported a medical

loss ratio - or the percentage of premiums spent on medical

services - of 92.8%, on par with analysts' estimate of 92.83%.

The company reported a medical loss ratio of 89.9% in the

last quarter.

CVS finalized a deal this year to buy Rite Aid's pharmacies

and acquired 9 million customers, a May regulatory filing

showed. The company was able to fill more prescriptions and

dispense more expensive drugs, driving revenue 11.7% higher to

$36.2 billion for that category.

Total revenue for the quarter rose 7.8% to $102.9 billion,

beating an expectation of $98.85 billion.