CVS Q2 results beat projected earnings and revenue

CVS Health Corporation’s second-quarter results reported growth for earnings and revenue expectations, however, its latest focus on healthcare services means continued cost-cutting measures and layoffs. 

For the three months ending June 30 total revenues for CVS increased 10.3% year-over-year driven by growth across all segments. 

“Our diversified business model delivered strong results this quarter. We continue to execute on our strategy to expand access to health services across our care delivery channels and strengthen our engagement with consumers to improve their health and well-being,” said Karen Lynch, CVS Health president and CEO.

Other key highlights from the earnings report included: 

Related:Another Ohio CVS is in trouble

While earnings and revenues beat expectations, CVS has simultaneously implemented a cost-cutting program as it pushes deeper into healthcare services in the wake of its $8 billion acquisition of Signify Health and its $10.6 billion purchase of Oak Street Health, reports CNBC.

Another part of this effort means cutting 5,000 jobs. Employees were notified via an internal memo earlier this week, where Lynch said the decisions were extremely difficult but necessary as CVS evolves to adapt to new consumer health needs and expectations.

The company has also set a goal of realizing $700 million-$800 million in cost savings in 2024, which will be reallocated and invested in health services and technology, Lynch said.