When a “boring” healthcare stock posts a 7% surge intraday, investors take notice. That's exactly what happened when CVS Health delivered its second-quarter 2025 earnings on July 31. The healthcare giant's adjusted earnings of $1.81 per share crushed analyst estimates of $1.45, while revenue climbed 8.4% year-over-year to $98.92 billion.
This impressive beat comes at a time when the S&P 500 Healthcare Index ($SRHC) fell 12% over the past year, significantly trailing the broader S&P 500 Index’s ($SPX) gain of 18.2%. CVS itself endured a particularly volatile 2024, cutting its earnings guidance three times and watching its stock plummet over 40% as medical costs in its Aetna insurance division spiraled higher than expected.
