CVS Health reported a sharp decline in Q3 2024 earnings as net income plummeted 96% to $87 million from $2.26 billion a year ago, while revenues rose 6.3% to $95.4 billion. The company recorded $1.2 billion in restructuring charges and established premium deficiency reserves of approximately $1.1 billion primarily related to Medicare and individual exchange products. The medical benefit ratio surged to 95.2% from 85.7% due to increased utilization.The company announced plans to close 271 retail stores in 2025 as part of an enterprise-wide restructuring program aimed at streamlining operations and reducing costs. The restructuring charges included a $607 million store impairment charge, $293 million in corporate workforce optimization costs, and $269 million in other asset impairments. Total revenues were driven by growth in Health Care Benefits and Pharmacy & Consumer Wellness segments.Pharmacy & Consumer Wellness segment saw same-store sales increase 19.5% year-over-year, with prescription volume up 9.1%. The Health Services segment's adjusted operating income rose 17.4% to $2.2 billion despite revenue declining 5.9% to $44.1 billion. The company maintained its retail pharmacy network while expanding its healthcare delivery capabilities through Oak Street Health and Signify Health acquisitions.

CVS Health reported a sharp decline in Q3 2024 earnings as net income plummeted 96% to $87 million from $2.26 billion a year ago, while revenues rose 6.3% to $95.4 billion. The company recorded $1.2 billion in restructuring charges and established premium deficiency reserves of approximately $1.1 billion primarily related to Medicare and individual exchange products. The medical benefit ratio surged to 95.2% from 85.7% due to increased utilization.The company announced plans to close 271 retail stores in 2025 as part of an enterprise-wide restructuring program aimed at streamlining operations and reducing costs. The restructuring charges included a $607 million store impairment charge, $293 million in corporate workforce optimization costs, and $269 million in other asset impairments. Total revenues were driven by growth in Health Care Benefits and Pharmacy & Consumer Wellness segments.Pharmacy & Consumer Wellness segment saw same-store sales increase 19.5% year-over-year, with prescription volume up 9.1%. The Health Services segment's adjusted operating income rose 17.4% to $2.2 billion despite revenue declining 5.9% to $44.1 billion. The company maintained its retail pharmacy network while expanding its healthcare delivery capabilities through Oak Street Health and Signify Health acquisitions.