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CVS Health boosts Aetna turnaround, nearly triples quarterly net income
CVS said Aetna's medical benefit ratio fell to 87.4% from 89.9% a year earlier, helping it lift full-year 2026 guidance for revenue and adjusted EPS.
CVS Health reported second-quarter 2026 net income of $2.995 billion, nearly three times the $1.013 billion it posted in the year-ago quarter, as its Aetna health insurance business continued to recover from medical cost pressures that hurt results in 2024 and 2025, according to Insurance Business. Total revenues rose 7.3% to $106.1 billion for the three months ended June 30, 2026. Diluted earnings per share increased to $2.31 from $0.80, with the Health Care Benefits segment, which includes Aetna, driving much of the improvement. The company said the medical benefit ratio for that segment fell to 87.4% from 89.9% a year earlier, after topping 95% in the third quarter of 2024 when Aetna saw higher costs among Medicare Advantage members. CVS also reported segment revenues of $37.5 billion, up 3.5%, and said adjusted operating income more than doubled to $2.426 billion in the segment. It raised its full-year 2026 outlook, projecting total revenues of at least $414 billion, up from at least $405 billion previously, and lifting adjusted EPS guidance to $7.90 to $8.10 from $7.30 to $7.50. Beyond Aetna, CVS said its Health Services segment revenue, including pharmacy benefit manager Caremark, rose 11.5% to $51.8 billion, while its Pharmacy and Consumer Wellness segment revenue increased to $33.8 billion. The company also highlighted use of artificial intelligence in claims processing, saying its Aetna second-generation Claims Assist Manager platform cut processing time by more than 20% for complex claims requiring manual review. It noted that its own exit from the individual ACA exchange business reflects a broader industry retreat, with seven carriers planning to exit ACA marketplaces for 2027 as total ACA enrollment declined 5% to 23.1 million in 2026.