5 Insightful Analyst Questions From CVS Health's Q1 Earnings Call

CVS Health’s first quarter results reflected steady execution across its core businesses, with management highlighting operational improvements in pharmacy, digital engagement, and a disciplined focus on cost control. CEO David Joyner credited the company’s integrated assets and digital tools for driving improved customer experiences and supporting revenue growth. CVS also addressed ongoing challenges in its health insurance segment, particularly with the individual exchange business, which management described as lacking a viable path to profitability. Leadership acknowledged the need to exit unprofitable markets and streamline prior authorization processes, aiming to further reduce friction for patients and providers.

Is now the time to buy CVS? Find out in our full research report (it’s free).

While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.

Our Top 5 Analyst Questions CVS Health’s Q1 Earnings Call

• Justin Lake (Wolfe Research) asked for details on Medicare Advantage trends and how stabilization compares to high single-digit medical cost assumptions. CEO David Joyner and Steve Nelson described progress in operating stability and early signs of cost trend stabilization, especially in Medicare, while noting ongoing pressure in group business.
• Lisa Gill (JP Morgan) inquired about the economic impact of the Novo Nordisk partnership for Wegovy and its effect on coverage and affordability. President Prem Shah explained that one-third of clients had not covered GLP-1 drugs due to cost, and the new formulary action is expected to expand access and savings, though guidance does not yet reflect these changes.
• Stephen Baxter (Wells Fargo) sought clarification on prior year development and individual exchange losses. CFO Tom Cowhey explained that most favorable development was from Medicare, but emphasized that the exit from individual exchanges would eliminate variable losses, with fixed costs subject to future reallocation.
• Elizabeth Anderson (Evercore ISI) questioned whether the Wegovy announcement or tariffs would impact guidance. CEO David Joyner clarified that Wegovy is not yet factored into guidance and that tariff exposure is currently limited for front-store items, with ongoing monitoring for supply chain impacts.
• Andrew Mok (Barclays) asked about cost pressures at Oak Street Health and operational changes in value-based care delivery. President Prem Shah noted early-year cost trend pressures at Oak Street but said these were offset by other favorable trends in healthcare delivery, with ongoing monitoring planned.

Catalysts in Upcoming Quarters

Looking ahead, the StockStory analyst team will monitor (1) the pace of pharmacy innovation, especially the rollout of bundled prior authorization and access to new weight management drugs, (2) the effects of insurance segment realignment and the exit from individual exchanges on overall margin recovery, and (3) legislative and regulatory developments—such as evolving state laws and tariffs—that could impact CVS Health’s retail and pharmacy businesses. The response to vaccine demand and consumer sentiment will also be important performance drivers.

CVS Health currently trades at $66.33, in line with $66.70 just before the earnings. At this price, is it a buy or sell? The answer lies in our full research report (it’s free).

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