CVS Health Appoints New CFO, Chief Medical Officer: Retail Sentiment Soars

Shares of CVS Health (CVS) traded 10% higher in premarket on Tuesday after CEO David Joyner appointed a new chief financial officer (CFO) to strengthen the leadership team.

The company said Brian Newman has been named CFO, effective April 21, succeeding the current CFO Tom Cowhey.

Newman was most recently executive vice president and CFO of United Parcel Service. Before joining UPS, he served as the executive vice president for PepsiCo's global operations and as chief strategy officer.

CVS also announced the appointment of Amy Compton-Phillips as the company’s new chief medical officer, effective May 19.

Meanwhile, the firm said it expects its financial results to meet or exceed its previously issued guidance for the full year of 2025.

CVS issued a full-year 2025 adjusted earnings outlook of $5.75 to $6 per share in February, higher than the adjusted earnings per share of $5.42 reported for full-year 2024.

Investors are also optimistic about CVS’s Aetna insurance unit after the Centers for Medicare and Medicaid Services (CMS) announced on Monday that government payments to Medicare Advantage plans are expected to increase on average by 5.06% from 2025 to 2026.

This marks an increase of 2.83 percentage points from the 2.23% in the January proposal from the Biden administration.

Bank of America also raised its price target on CVS Health to $80 from $75 while keeping a ‘Buy’ rating on the shares following CMS’s announcement, according to TheFly.

On Stocktwits, retail sentiment around CVS Health jumped from ‘bearish’ to ‘bullish’ while message volume rose from ‘low’ to ‘high’ over the past 24 hours.

CVS shares are up by about 44% this year but down by over 14% over the past 12 months.

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