'The Walmart of health and pharmacy needs.'

• Retail Pharmacy Services: Dispensing prescription drugs and selling over-the-counter medications, health and wellness products, and general merchandise through CVS Pharmacy stores.
• Pharmacy Benefit Management (PBM): Administering prescription drug plans for employers, health plans, and government entities, including formulary management, claims processing, and mail-order pharmacy.
• Health Insurance Products: Providing a variety of health insurance plans, including medical, dental, pharmacy, and behavioral health, primarily through Aetna.
• MinuteClinic Services: Offering basic healthcare services, vaccinations, and health screenings through walk-in clinics located within CVS Pharmacy stores.

Major Customers of CVS Health (CVS)

CVS Health serves a broad spectrum of customers across its integrated healthcare services. While the company has significant business-to-business relationships (e.g., with employers, health plans, and government entities), a substantial portion of its revenue and services ultimately flows to and directly impacts individual consumers. Therefore, CVS Health primarily serves individuals, and its major customer categories include:

1. Retail Pharmacy Patients and Consumers: These are individuals who visit CVS Pharmacy stores to fill prescriptions, purchase over-the-counter medications, health and wellness products, and other general merchandise. This category represents the most direct interaction between CVS and individual consumers.

2. Health Plan Members (Aetna): This category encompasses individuals who are enrolled in health insurance plans administered by Aetna, a CVS Health company. This includes individuals covered by employer-sponsored group plans, those who purchase individual health plans, and beneficiaries of government programs such as Medicare Advantage or Medicaid managed care plans. While the contractual relationship for group plans is often with employers or government entities, these individuals are the ultimate users and beneficiaries of the health benefits.

3. Individuals Utilizing Pharmacy Benefit Management (PBM) Services (Caremark): These are individuals whose prescription drug benefits are managed by CVS Caremark, CVS Health's Pharmacy Benefit Manager. These individuals are typically members of various health plans (e.g., employer-sponsored, government programs, or other insurers) that contract with Caremark to administer their prescription drug programs. They interact with Caremark through prescription fulfillment, mail-order pharmacy services, and specialty pharmacy services.

• AmerisourceBergen Corporation (ABC)
• Cardinal Health, Inc. (CAH)
• McKesson Corporation (MCK)

David Joyner, President & Chief Executive Officer

David Joyner leads CVS Health as its President and Chief Executive Officer, a role he assumed in October 2024, succeeding Karen S. Lynch. He is responsible for driving the company's overall strategy, integrating its retail, digital, and insurance assets to provide continuous care for consumers. Joyner oversees a workforce of 300,000 colleagues serving 185 million consumers across 9,000 community locations and manages the pharmacy-benefit division for 110 million members, focusing on cost-effectiveness and patient outcomes.

Brian Newman, Executive Vice President & Chief Financial Officer

Brian Newman was appointed Executive Vice President and Chief Financial Officer of CVS Health, effective April 21, 2025, taking over from Tom Cowhey. Prior to joining CVS Health, Newman served as Executive Vice President and CFO at United Parcel Service (UPS). His career also includes over two decades in executive financial positions at PepsiCo. He began his professional journey as an investment banker at PaineWebber.

Heidi Capozzi, Executive Vice President & Chief People Officer

Heidi Capozzi is the Executive Vice President and Chief People Officer at CVS Health. In this role, she is responsible for the company's human engine, overseeing recruitment, cultivating company culture, and developing capabilities for its 300,000 colleagues. Capozzi brings extensive experience in human resources and organizational leadership to her position, contributing to the effectiveness and adaptability of the CVS Health leadership team.

Sree Chaguturu, MD, Executive Vice President & President, Health Care Delivery

Dr. Sree Chaguturu serves as Executive Vice President and President of Health Care Delivery at CVS Health. He is responsible for engineering the company's value-based care ecosystem, directing healthcare delivery across its 1,200 MinuteClinic sites and various virtual platforms. Dr. Chaguturu previously held the role of Chief Medical Officer for CVS Health and Chief Medical Officer for CVS Caremark. Before joining CVS Health, he was the Chief Population Health Officer at Mass General Brigham, Massachusetts' largest healthcare system, where he led its accountable care organization and numerous clinical care delivery and innovation programs. He is also a practicing internal medicine physician at Massachusetts General Hospital.

Amy Compton-Phillips, MD, Executive Vice President & Chief Medical Officer

Dr. Amy Compton-Phillips became Executive Vice President and Chief Medical Officer of CVS Health, effective May 19, 2025. She is responsible for setting clinical strategy and leading medical affairs for the company. Prior to her role at CVS Health, Dr. Compton-Phillips was the Chief Physician Executive at Press Ganey, a healthcare performance improvement company. She also served as President and Chief Clinical Officer at Providence Health & Services, where she oversaw clinical operations and care across 51 hospitals and 1,000 clinics. Her extensive background includes holding positions of increasing responsibility at Kaiser Permanente from 1985 to 2007. She is a board-certified internist.

• Amazon's aggressive entry and expansion in pharmacy services, including Amazon Pharmacy (PillPack acquisition and RxPass for Prime members), directly competes with CVS's retail pharmacy and mail-order services, and its integrated PBM functions could challenge Caremark.
• Increasing regulatory scrutiny and potential legislative overhaul of the Pharmacy Benefit Manager (PBM) industry. Federal and state investigations, including by the FTC and Congress, are examining PBM practices like spread pricing and formulary management, which could fundamentally alter the business model and profitability of Caremark.
• Emergence of direct-to-consumer, transparent drug pricing models, such as Mark Cuban's Cost Plus Drug Company, which bypass traditional PBMs and offer drugs at significantly lower, transparent prices, challenging the existing drug supply chain and potentially diverting consumers and employer groups.

CVS Health (CVS) operates in several large addressable markets within the U.S. healthcare sector:

• Pharmacy Services (Retail Pharmacy): The U.S. pharmacy market size reached an estimated USD 643.4 billion in 2024 and is projected to grow to USD 905.8 billion by 2033, exhibiting a compound annual growth rate (CAGR) of 3.87% from 2025 to 2033. Other estimates place the U.S. pharmacy market at USD 588.7 billion in 2024, expected to reach USD 609.6 billion in 2025.
• Pharmacy Benefit Management (PBM): The U.S. Pharmacy Benefit Management market was valued at approximately USD 555 billion in 2024. Another estimate valued the U.S. pharmacy benefit management market at USD 491.88 billion in 2023, with an expected growth at a CAGR of 5.56% from 2023 to 2029.
• Health Insurance (Aetna): The United States health insurance market is valued at approximately USD 1.6 trillion. Separately, the U.S. health and medical insurance market reached USD 1.57 trillion in 2025 and is projected to advance to USD 2.1 trillion by 2030, reflecting a 5.98% CAGR. The U.S. group health insurance market alone was estimated at USD 1.41 trillion in 2024.
• MinuteClinic (Retail Clinics): The U.S. retail clinics market size was valued at USD 2.59 billion in 2023 and is projected to grow from USD 2.85 billion in 2024 to USD 7.38 billion by 2032, exhibiting a CAGR of 12.6%. CVS Health's MinuteClinic held 63% of the market share in 2023.
• Specialty Pharmacy (CVS Specialty): In 2024, pharmacies in the U.S. collectively dispensed an estimated USD 265 billion in specialty medications. The broader Specialty Pharma Market in the U.S. was valued at USD 328.6 billion in 2024 and is expected to reach USD 547.2 billion by 2031, growing at a CAGR of 7.6% during 2025-2031.

CVS Health (symbol: CVS) is expected to drive future revenue growth over the next 2-3 years through several key strategic initiatives and market dynamics:

1. Growth and Margin Recovery in the Aetna Healthcare Benefits Segment: CVS Health anticipates continued improvement and expansion within its Aetna healthcare benefits business, particularly in Medicare Advantage. This growth is expected to be fueled by disciplined plan design, a focus on more profitable areas after exiting the Affordable Care Act (ACA) individual exchanges in 2026, and repricing opportunities in its group business. The company reported improved performance in its Aetna insurance unit and expects further margin expansion.
2. Transformation of the Pharmacy Benefit Management (PBM) Business: The company is transitioning its PBM segment to new, more transparent pricing models, including CVS CostVantage for its retail pharmacy business and CVS Caremark TrueCost for its PBM clients. This strategic shift aims to align reimbursement more closely with actual costs plus service fees, enhancing transparency and supporting sustainable, long-term growth for the PBM segment, despite potential near-term headwinds from renegotiating legacy contracts.
3. Expansion of Health Services and Value-Based Care: CVS Health continues to focus on its Health Services segment, which includes its acquisitions of Oak Street Health and Signify Health. While the company has tempered the planned growth of new Oak Street Health clinics, value-based care remains a critical component of its Medicare strategy, and increased volumes at Signify are expected to contribute to revenue. The broader strategy involves enhancing its healthcare delivery capabilities and expanding services.
4. Growth in the Pharmacy & Consumer Wellness Segment: This segment is expected to contribute to revenue growth through factors such as favorable pharmacy drug mix, increased prescription volumes, and robust performance in retail front-store sales and immunization activity. The company's strong execution and omnichannel capabilities in its retail pharmacy operations support this continued growth.

Share Repurchases

• CVS Health's Board of Directors authorized a $10 billion share repurchase program in November 2022, with this amount remaining available as of September 30, 2024. An earlier 2021 program had $1.5 billion remaining as of the same date.
• In 2024, the company repurchased approximately 40 million shares for about $3.0 billion, which included a $3.0 billion accelerated share repurchase (ASR) transaction.
• In 2023, CVS Health repurchased approximately 22.8 million shares for around $2.0 billion, including a $2.0 billion ASR.

Share Issuance

• CVS Health had a net common equity issuance of $549 million in 2021 and $264 million in 2020.
• Proceeds from the exercise of stock options amounted to $191 million for the six months ended June 30, 2025, and $228 million for the six months ended June 30, 2024.

Outbound Investments

• CVS Health acquired Oak Street Health, a value-based primary care company, for approximately $10.6 billion. The deal was announced in February 2023 and completed in May 2023.
• The company completed the acquisition of Signify Health, a technology and services company focused on provider enablement and in-home health, for roughly $8 billion in 2023, following an agreement announced in September 2022.
• CVS Health plans to invest $20 billion over the next decade (starting around 2025) to develop an open, interoperable digital health platform aimed at enhancing the U.S. healthcare system.

Capital Expenditures

• CVS Health's capital expenditures were $2.781 billion in 2024, $3.031 billion in 2023, and $2.727 billion in 2022.
• Expected capital expenditures are projected to be $2.951 billion for 2025 and $3.099 billion for 2026.
• A primary focus of these expenditures includes investing in digital enhancements and technology to improve the consumer experience, such as the all-in-one CVS Health app, and improving operations at Oak Street Health.