CVS Health’s Pharmacy & Consumer Wellness segment is experiencing notable growth thanks to its commitment to operational excellence and technology advancements that enhance customer experience. In the first half of 2025, the segment reported an impressive revenue increase of 11.8%, driven primarily by a favorable pharmacy drug mix and an uptick in prescription volume. Despite facing challenges related to pharmacy reimbursement pressures, CVS has showcased resilience through effective execution at its 9,000 community health locations, supported by a dedicated workforce of over 200,000 employees. With third-quarter 2025 results expected soon, this segment is anticipated to play a significant role in the company’s overall financial performance.
The front store segment, which includes over-the-counter medications, consumer health and beauty products, and general merchandise, is also witnessing steady growth. This improvement stems from an expanding customer base and increased retail market share. Additionally, CVS Pharmacy has recently enhanced its market position by acquiring select assets from Rite Aid, along with the prescription files of 626 former Rite Aid and Bartell Drugs locations across 15 states. Early results from these acquisitions have already been reflected in prior quarters and are expected to positively influence the upcoming financial report.
2025 is proving to be a transformative year for CVS, particularly with its CostVantage pharmacy reimbursement model, which has now successfully transitioned all commercial prescriptions. This model aims to tackle prevalent industry issues of cross-subsidization between branded and generic drugs, fostering more stable margins while delivering better value to payers in a clearer manner.
However, CVS remains cautious about potential fluctuations in vaccine market demand and evolving consumer dynamics. The Zacks Consensus Estimate suggests a promising 7.4% year-over-year revenue growth for the Pharmacy & Consumer Wellness segment in the upcoming third quarter.
In the broader retail landscape, CVS Health’s competitors are also making headlines. Walmart is slated to report its fiscal 2026 third-quarter earnings on November 20 and has recently unveiled plans for its Black Friday and Cyber Monday promotions. The retail giant is offering significant discounts of up to 60% on popular brands and thousands of items priced under $20, positioning itself uniquely in a competitive market. Additionally, Walmart is working with Avery Dennison to enhance inventory accuracy and minimize food waste through the implementation of radio-frequency identification (RFID) technology.
Similarly, Amazon is preparing for its third-quarter 2025 earnings report on October 30, having recently expanded its collaboration with Accenture to deliver innovative digital services to defense and national security sectors. Amazon also launched Amazon Grocery, a new private-label brand that includes over 1,000 competitively priced, high-quality food items, further solidifying its presence in the grocery sector.
Overall, the ongoing developments within CVS Health and its competitors signal a robust retail environment, with each company strategically responding to market demands and consumer expectations. As CVS Health continues to focus on customer experience and operational improvements, it stands well-positioned for future growth amid an evolving healthcare landscape.