CVS Health's $2.3B net income in Q1: 14 things to know

CVS Health pulled in 11.2 percent higher revenues in the first quarter of 2022, seeing the largest growth in its health insurance business, according to the company's earnings report released May 4.

"Our strategy improves access to affordable, convenient and personalized health care, which benefits consumers and shareholders," President and CEO Karen Lynch said. "We once again showed the power of our purpose and potential, building on our strong momentum and raising full-year guidance as a result."

Fourteen things to know:

  • Total revenues grew from $69.1 billion to $76.8 billion year over year, representing an 11.2 percent increase.

  • Total operating costs in the first quarter were $73.3 billion from $65.5 billion in 2021, a nearly 12 percent increase.

  • Operating income decreased 2.4 percent primarily because of a legal settlement accrual related to a pending agreement with the state of Florida to settle all opioid claims against the company for $484 million, to be paid out over 18 years.

  • Net income increased 4 percent, rising $2.2 billion in 2021 to $2.3 billion in 2022.

  • Roger Farah will succeed David Dorman as independent chair of the board of directors after Mr. Dorman's retirement, effective May 11. Director Tony White will also retire in May at the end of his current term.

Healthcare benefits segment:

  • Total revenues rose 12.8 percent year over year, increasing from $20.5 billion in 2021 to $23.1 billion in 2022

  • Adjusted operating income decreased 1.7 percent from $1.78 billion in 2021 to $1.75 billion in 2022.

  • There were 24.5 million total members in the first quarter, increasing from 23.6 million in 2021.

Pharmacy services segment:

  • Total revenues rose 8.6 percent year over year, increasing from $36.3 billion in 2021 to $39.5 billion in 2022.

  • Adjusted operating income increased 8.6 percent from $1.5 billion in 2021 to $1.6 billion in 2022.

  • There were 567 million total processed pharmacy claims in the first quarter, increasing from 536 million in 2021.

Retail segment:

  • Total revenues rose 9.2 percent year over year, increasing from $23.3 billion in 2021 to $25.4 billion in 2022.

  • Adjusted operating income increased 15 percent from $1.4 billion in 2021 to $1.6 billion in 2022.

  • There were 394 million prescriptions filled in the first quarter, increasing from 375 million in 2021.

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