CVS Health’s shares jumped 10% in premarket trading after the company reported a fourth-quarter revenue of $97.71 billion, a 4.2% increase from the previous year. This growth was driven by its pharmacy business and insurance unit. Despite this, CVS faced challenges with its insurance business, Aetna, which saw a 23% revenue increase to $32.96 billion but reported an adjusted operating loss of $439 million due to higher medical costs and lower Medicare Advantage star ratings. The medical benefit ratio for the insurance unit rose to 94.8% from 88.5%, indicating higher medical expenses relative to premiums collected. CVS’s health services segment, including Caremark, generated $47.02 billion in revenue, down over 4% from last year, processing 499.4 million pharmacy claims. The pharmacy and consumer wellness division saw a 7% sales increase to $33.51 billion, driven by higher prescription volumes. Despite these challenges, CVS’s overall performance exceeded Wall Street’s expectations.
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