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Segment Reporting
 9 Months Ended
Sep. 30, 2025
Segment Reporting [Abstract]  
Segment Reporting Segment Reporting
The Company has four reportable segments: Health Care Benefits, Health Services, Pharmacy & Consumer Wellness and Corporate/Other. The Company’s segments maintain separate financial information, and the CODM, the Company’s Chief Executive Officer, evaluates the segments’ operating results on a regular basis in deciding how to allocate resources among the segments and in assessing segment performance. The CODM evaluates the performance of the Company’s segments based on adjusted operating income. Total assets by segment are not used by the CODM to assess the performance of, or allocate resources to, the Company’s segments, therefore total assets by segment are not disclosed.

Adjusted operating income (loss) is defined as operating income (loss) (GAAP measure) excluding the impact of amortization of intangible assets, net realized capital gains or losses and other items, if any, that neither relate to the ordinary course of the Company’s business nor reflect the Company’s underlying business performance. The CODM uses adjusted operating income as its principal measure of segment performance as it enhances the CODM’s ability to compare past financial performance with current performance and analyze underlying business performance and trends. Non-GAAP financial measures the Company discloses, such as consolidated adjusted operating income, should not be considered a substitute for, or superior to, financial measures determined or calculated in accordance with GAAP.

The following is a reconciliation of financial measures of the Company’s segments to the consolidated totals:
Three Months Ended September 30, 2025
In millionsHealth Care
Benefits
Health
Services (1)
Pharmacy &
Consumer
Wellness		Corporate/
Other
Consolidated
Totals
Revenues from external customers$35,431 $42,354 $24,441 $13 $102,239 
Intersegment revenues49 6,913 11,773 — 18,735 
Net investment income (loss)
513 (1)— 120 632 
Total revenues35,993 49,266 36,214 133 121,606 
Intersegment eliminations (2)
(18,735)
Total consolidated revenues$102,871 
Less: Net realized capital gains (losses)
33 — — (44)
Cost of products sold— 45,230 29,647 — 
Health care costs31,319 1,291 — 47 
Other segment items (3)
4,327 695 5,089 513 
Adjusted operating income (loss)$314 $2,050 $1,478 $(383)$3,459 
Reconciliation of principal measure of segment performance to consolidated operating loss:
Amortization of intangible assets (4)
500 
Net realized capital losses (5)
11 
Acquisition-related integration costs (6)
27 
Goodwill impairment (7)
5,725 
Health Care Delivery clinic closure charge (8)
83 
Opioid litigation charge (9)
320 
Operating loss (GAAP measure)
(3,207)
Gain on deconsolidation of subsidiary (14)
483 
Interest expense(784)
Other income26 
Loss before income tax provision
$(3,482)
Depreciation and amortization$375 $260 $396 $103 $1,134 
Three Months Ended September 30, 2024
In millionsHealth Care
Benefits
Health
Services (1)
Pharmacy &
Consumer
Wellness		Corporate/
Other
Consolidated
Totals
Revenues from external customers$32,555 $40,794 $21,515 $14 $94,878 
Intersegment revenues18 3,336 10,908 — 14,262 
Net investment income (loss)
423 (1)— 128 550 
Total revenues32,996 44,129 32,423 142 109,690 
Intersegment eliminations (2)
(14,262)
Total consolidated revenues$95,428 
Less: Net realized capital gains (losses)
(1)— — 20 
Cost of products sold— 40,381 26,032 — 
Health care costs29,443 936 — 49 
Other segment items (3)
4,478 608 4,795 402 
Adjusted operating income (loss)$(924)$2,204 $1,596 $(329)$2,547 
Reconciliation of principal measure of segment performance to consolidated operating income:
Amortization of intangible assets (4)
507 
Net realized capital gains (5)
(19)
Acquisition-related integration costs (6)
41 
Office real estate optimization charges (10)
17 
Restructuring charges (13)
1,169 
Operating income (GAAP measure)832 
Interest expense(752)
Other income25 
Income before income tax provision$105 
Depreciation and amortization$407 $267 $387 $100 $1,161 
Nine Months Ended September 30, 2025
In millionsHealth Care
Benefits
Health
Services (1)
Pharmacy &
Consumer
Wellness		Corporate/
Other
Consolidated
Totals
Revenues from external customers$105,667 $120,568 $68,460 $40 $294,735 
Intersegment revenues87 18,603 33,247 — 51,937 
Net investment income
1,307 10 — 322 1,639 
Total revenues107,061 139,181 101,707 362 348,311 
Intersegment eliminations (2)
(51,937)
Total consolidated revenues$296,374 
Less: Net realized capital gains (losses)
(1)15 — (73)
Cost of products sold— 128,425 83,005 — 
Health care costs90,696 3,439 — 133 
Other segment items (3)
12,751 2,074 14,573 1,428 
Adjusted operating income (loss)$3,615 $5,228 $4,129 $(1,126)$11,846 
Reconciliation of principal measure of segment performance to consolidated operating income:
Amortization of intangible assets (4)
1,493 
Net realized capital losses (5)
59 
Acquisition-related integration costs (6)
100 
Goodwill impairment (7)
5,725 
Health Care Delivery clinic closure charge (8)
83 
Opioid litigation charge (9)
320 
Office real estate optimization charges (10)
10 
Legacy litigation charges (11)
1,220 
Loss on Accountable Care assets (12)
288 
Operating income (GAAP measure)
2,548 
Gain on deconsolidation of subsidiary (14)
483 
Interest expense(2,332)
Other income83 
Income before income tax provision
$782 
Depreciation and amortization$1,199 $781 $1,169 $310 $3,459 
Nine Months Ended September 30, 2024
In millionsHealth Care
Benefits
Health
Services (1)
Pharmacy &
Consumer
Wellness		Corporate/
Other
Consolidated
Totals
Revenues from external customers$96,577 $115,954 $61,127 $43 $273,701 
Intersegment revenues54 10,634 29,859 — 40,547 
Net investment income (loss)
1,076 (3)— 325 1,398 
Total revenues97,707 126,585 90,986 368 315,646 
Intersegment eliminations (2)
(40,547)
Total consolidated revenues$275,099 
Less: Net realized capital losses
(82)— — (7)
Cost of products sold— 116,678 72,627 — 
Health care costs84,359 2,428 — 142 
Other segment items (3)
12,684 1,997 14,343 1,229 
Adjusted operating income (loss)$746 $5,482 $4,016 $(996)$9,248 
Reconciliation of principal measure of segment performance to consolidated operating income:
Amortization of intangible assets (4)
1,522 
Net realized capital losses (5)
89 
Acquisition-related integration costs (6)
203 
Opioid litigation charge (9)
100 
Office real estate optimization charges (10)
17 
Restructuring charges (13)
1,169 
Operating income (GAAP measure)6,148 
Interest expense(2,200)
Other income74 
Income before income tax provision$4,022 
Depreciation and amortization$1,196 $792 $1,164 $298 $3,450 
_____________________________________________
(1)Total revenues of the Health Services segment include approximately $2.4 billion and $2.7 billion of retail co-payments for the three months ended September 30, 2025 and 2024, respectively. Total revenues of the Health Services segment include approximately $8.8 billion and $8.9 billion of retail co-payments for the nine months ended September 30, 2025 and 2024, respectively.
(2)Intersegment revenue eliminations relate to intersegment revenue generating activities that occur between the Health Care Benefits segment, the Health Services segment, and/or the Pharmacy & Consumer Wellness segment.
(3)Other segment items for each reportable segment include operating expenses, which primarily consist of selling, general and administrative expenses. Other segment items exclude the impact of amortization of intangible assets and other items, if any, that neither relate to the ordinary course of the Company’s business nor reflect the Company’s underlying business performance.
(4)The Company’s acquisition activities have resulted in the recognition of intangible assets as required under the acquisition method of accounting which consist primarily of trademarks, customer contracts/relationships, covenants not to compete, technology, provider networks and value of business acquired. Definite-lived intangible assets are amortized over their estimated useful lives and are tested for impairment when events indicate that the carrying value may not be recoverable. The amortization of intangible assets is reflected in operating expenses within each segment. Although intangible assets contribute to the Company’s revenue generation, the amortization of intangible assets does not directly relate to the underwriting of the Company’s insurance products, the services performed for the Company’s customers or the sale of the Company’s products or services. Additionally, intangible asset amortization expense typically fluctuates based on the size and timing of the Company’s acquisition activity. Accordingly, the Company believes excluding the amortization of intangible assets enhances the Company’s and investors’ ability to compare the Company’s past financial performance with its current performance and to analyze underlying business performance and trends. Intangible asset amortization excluded from the related non-GAAP financial measure represents the entire amount recorded within the Company’s GAAP financial statements, and the revenue generated by the associated intangible assets has not been excluded from the related non-GAAP financial measure. Intangible asset amortization is excluded from the related non-GAAP financial measure because the amortization, unlike the related revenue, is not affected by operations of any particular period unless an intangible asset becomes impaired or the estimated useful life of an intangible asset is revised.
(5)The Company’s net realized capital gains and losses arise from various types of transactions, primarily in the course of managing a portfolio of assets that support the payment of insurance liabilities. Net realized capital gains and losses are reflected in net investment income (loss) within each segment. These capital gains and losses are the result of investment decisions, market conditions and other economic developments that are unrelated to the performance of the Company’s business, and the amount and timing of these capital gains and losses do not directly relate to the underwriting of the Company’s insurance products, the services performed for the Company’s customers or the sale of the Company’s products or services. Accordingly, the Company believes excluding net realized capital gains and losses enhances the Company’s and investors’ ability to compare the Company’s past financial performance with its current performance and to analyze underlying business performance and trends.
(6)During the three and nine months ended September 30, 2025 and 2024, the acquisition-related integration costs relate to the acquisitions of Signify Health and Oak Street Health. The acquisition-related integration costs are reflected in operating expenses within the Corporate/Other segment.
(7)During the three and nine months ended September 30, 2025, the goodwill impairment charge relates to the Health Care Delivery reporting unit within the Health Services segment.
(8)During the three and nine months ended September 30, 2025, the Health Care Delivery clinic closure charge primarily relates to the write down of long-lived assets in connection with the planned closure of certain existing Oak Street Health clinics in 2026, as well as associated severance and employee-related costs expected to be incurred. The Health Care Delivery clinic closure charge is reflected in operating expenses within the Health Services segment.
(9)During the three and nine months ended September 30, 2025 and the nine months ended September 30, 2024, the opioid litigation charges relate to changes in the Company’s accrual related to ongoing opioid litigation matters.
(10)During the nine months ended September 30, 2025 and the three and nine months ended September 30, 2024, the office real estate optimization charges primarily relate to the abandonment of leased real estate and the related right-of-use assets and property and equipment in connection with the Company’s evaluation of corporate office real estate space in response to its ongoing flexible work arrangement. The office real estate optimization charges are reflected in operating expenses within each segment.
(11)During the nine months ended September 30, 2025, the Company recorded legacy litigation charges related to two court decisions associated with its past business practices.
In April 2025, a jury found Omnicare and CVS Health Corporation liable in connection with alleged violations of the federal False Claims Act related to dispensing practices by Omnicare from 2010, prior to its acquisition by the Company in 2015, through 2018. Damages were found only with respect to Omnicare. Accordingly, the Company recorded a litigation charge of $387 million during the first quarter of 2025. During the second quarter of 2025, the Company recorded a charge of $542 million, reflecting penalties assessed under the False Claims Act. These litigation charges are reflected in operating expenses within the Pharmacy & Consumer Wellness segment.
In June 2025, a court found certain subsidiaries of CVS Health Corporation liable for damages in connection with a complaint filed in February 2014, in which the government declined to intervene, related to PBM direct and indirect remuneration reporting practices for two clients from 2010 through 2016, which the Company has since modified. In connection with this court decision, the Company recorded a litigation charge of $291 million during the second quarter of 2025. This litigation charge is reflected in operating expenses within the Health Services segment.
(12)During the nine months ended September 30, 2025, the loss on the wind down and sale of Accountable Care assets represents the pre-tax loss on the divestiture of the Company’s MSSP operations, which the Company sold in March 2025, as well as costs incurred in connection with the process of winding down the Company’s ACO REACH operations. The loss on Accountable Care assets is reflected in operating expenses within the Health Services segment.
(13)During the three and nine months ended September 30, 2024, the restructuring charges are primarily comprised of a store impairment charge, corporate workforce optimization costs, including severance and employee-related costs, and other asset impairment and related charges associated with the discontinuation of certain non-core assets. During the third quarter of 2024, the Company finalized an enterprise-wide restructuring plan intended to streamline and simplify the organization, improve efficiency and reduce costs. In connection with this restructuring plan, the Company completed a strategic review of its retail business and determined that it planned to close additional retail stores in 2025, and, accordingly, it recorded a store impairment charge to write down the associated lease right-of-use assets and property and equipment. In addition, during the third quarter of 2024, the Company also conducted a review of its various strategic assets and determined that it would discontinue the use of certain non-core assets, at which time impairment losses were recorded to write down the carrying value of these assets to the Company’s best estimate of their fair value. The restructuring charges associated with the store impairments are reflected within the Pharmacy & Consumer Wellness segment, other asset impairments and related charges are reflected within the Corporate/Other and Pharmacy & Consumer Wellness segments and corporate workforce optimization costs are reflected within the Corporate/Other segment.
(14)During the three and nine months ended September 30, 2025, the gain on deconsolidation of subsidiary relates to Omnicare, a wholly-owned indirect subsidiary of CVS Health Corporation, and certain of its subsidiary entities. In September 2025, the Omnicare Entities voluntarily initiated Chapter 11 proceedings under the U.S. Bankruptcy Code, at which time the Company determined that it no longer retained control of the Omnicare Entities and deconsolidated the subsidiaries.