CVS HEALTH Corp SEC 10-Q Report

CVS Health Corp, a leading diversified health services company, has released its Form 10-Q report for the third quarter of 2023. The report provides a comprehensive overview of the company's financial performance and key business activities, reflecting both the challenges and strategic shifts faced by the company.

Financial Highlights

CVS Health Corp reported the following key financial metrics for the third quarter of 2023:

• Total Revenues: $102,871 million, reflecting an increase from $95,428 million in the prior year period, driven by higher product sales and premiums.
• Operating Income (Loss): $(3,207) million, compared to $832 million in the prior year period, primarily due to a goodwill impairment charge.
• Net Income (Loss): $(3,990) million, compared to $71 million in the prior year period, impacted by the goodwill impairment and restructuring charges.
• Net Income (Loss) Attributable to CVS Health: $(3,975) million, compared to $87 million in the prior year period.
• Basic Net Income (Loss) Per Share Attributable to CVS Health: $(3.13), compared to $0.07 in the prior year period.
• Diluted Net Income (Loss) Per Share Attributable to CVS Health: $(3.13), compared to $0.07 in the prior year period.

Business Highlights

CVS Health Corp's business performance for the third quarter of 2023 includes the following key highlights:

• Health Care Benefits Segment: Operates as a leading diversified health care benefits provider through its Aetna operations, offering a broad range of traditional, voluntary, and consumer-directed health insurance products and related services. This includes medical, pharmacy, dental, and behavioral health plans, as well as Medicare Advantage and Medicare Supplement plans. The segment primarily serves employer groups, government-sponsored plans, and individual consumers.
• Health Services Segment: Provides a full range of pharmacy benefit management solutions through CVS Caremark operations and delivers health care services in medical clinics, virtually, and in the home. This includes plan design offerings, formulary management, retail pharmacy network management services, and specialty and mail order pharmacy services. The segment also includes health care delivery assets like Signify Health and Oak Street Health.
• Pharmacy & Consumer Wellness Segment: Dispenses prescriptions through CVS Pharmacy retail locations and infusion operations, provides ancillary pharmacy services, and sells a wide assortment of health and wellness products. It supports the Health Services segment's specialty and mail order pharmacy offerings and operates approximately 9,000 retail locations.
• Corporate/Other Segment: Includes management and administrative expenses to support the company's overall operations, such as executive management, legal, compliance, human resources, and finance departments. It also includes products for which the company no longer solicits or accepts new customers, such as large case pensions and long-term care insurance products.
• Omnicare Bankruptcy: Omnicare, a wholly-owned indirect subsidiary, initiated Chapter 11 proceedings, leading to its deconsolidation. The financial results of Omnicare were not material and were included in the Pharmacy & Consumer Wellness segment.
• Rite Aid Asset Acquisition: CVS Health acquired prescription files and certain Rite Aid stores in Idaho, Oregon, and Washington, enhancing its retail presence in these regions.
• ACO REACH and MSSP Exit: The company exited the ACO REACH program and divested its MSSP operations, incurring costs related to these actions. This strategic move reflects a shift in focus within the Health Services segment.
• Goodwill Impairment: The Health Care Delivery reporting unit experienced a $5.7 billion goodwill impairment due to strategic changes and lower financial projections, impacting the Health Services segment.
• Future Outlook: The company plans to exit the states in which Aetna operates on the individual public health insurance exchanges effective January 2026, indicating a strategic shift in its Health Care Benefits segment.

SEC Filing: CVS HEALTH Corp [ CVS ] - 10-Q - Oct. 29, 2025