CVS Health: A Look at the Company's Big Plans and Tech Boost

CVS Health has been making waves with its recent announcements. The company shared its future plans during an investor event on Tuesday. This has led to a significant increase in its stock price. So, what's driving this surge? First off, CVS has big expectations for its revenue. By 2025, they aim to bring in at least $400 billion. That's more than what analysts predicted. They also expect to make between $4. 37 billion and $4. 54 billion in operating income. This is a step up from their earlier forecast. Looking ahead to 2026, CVS is confident it will keep growing. They expect to make at least $400 billion again, with operating income ranging from $13. 26 billion to $13. 60 billion. The company is also targeting a mid-teens adjusted earnings growth rate through 2028. This shows they are planning for steady, long-term growth. But it's not just about numbers. CVS is also investing in technology. They introduced new tech products and services focused on "Engagement as a Service. " The goal is to create a seamless, integrated platform for consumers. This could lead to better health outcomes, lower costs, and more personalized services. The company claims it has already saved over $1 billion. This money is being put into new growth and AI projects. For example, in their Aetna unit, they've saved nurses 90 minutes a day by improving documentation. They've also reduced call center volume by 30% and streamlined their care management system. Oak Street Health, another part of CVS, is using AI tools in 90% of its facilities. Meanwhile, CVS Caremark can now process over 300 claims per second during peak times. This shows how technology is playing a big role in their operations. All these updates have made investors happy. As of Tuesday, CVS Health's stock was up by 3. 18%, reaching $78. 96. This shows that the market is responding positively to their plans.