Investor Susie Lisa, CFA Media T.J. Crawford Contact Senior Vice President Contact Vice President Investor Relations External Affairs (401) 770-4050 (212) 457-0583 FOR IMMEDIATE RELEASE CVS HEALTH REPORTS STRONG SECOND Q

CVS HEALTH REPORTS STRONG SECOND QUARTER RESULTS

RAISES 2021 FULL YEAR EPS AND CASH FLOW FROM OPERATIONS GUIDANCE

Second Quarter Highlights

Total revenues increased to $72.6 billion, up 11.1% compared to prior year

GAAP diluted EPS of $2.10 and Adjusted EPS of $2.42

Year-to-date Highlights

Total revenues increased to $141.7 billion, up 7.3% compared to prior year

GAAP diluted EPS of $3.78 and Adjusted EPS of $4.46

Generated cash flow from operations of $8.7 billion

Repaid $5.4 billion of long-term debt

2021 Full Year Guidance

Raised GAAP diluted EPS guidance range to $6.35 to $6.45 from $6.24 to $6.36

Raised Adjusted EPS guidance range to $7.70 to $7.80 from $7.56 to $7.68

Raised cash flow from operations guidance range to $12.5 billion to $13.0 billion from $12.0 billion to $12.5 billion

WOONSOCKET, RHODE ISLAND, August 4, 2021 - CVS Health Corporation (NYSE CVS) today announced operating results for the three months ended June 30, 2021.

"We delivered another quarter of strong results and once again raised our outlook for the year," said CVS Health President and CEO Karen S. Lynch. "This quarter was highlighted by broad sales and earnings outperformance, as well as sequential operating margin improvement. We continue to play a critical role in helping America prevail against the pandemic while demonstrating the effectiveness of our unique business model, which is focused on meeting customer needs through innovations that make health care more local, affordable and connected."

_____________________________________________

The Company presents both GAAP and non-GAAP financial measures in this press release to assist in the comparison of the Company's past financial performance with its current financial performance. See "Non-GAAP Financial Information" beginning on page 11 and endnotes beginning on page 21 for explanations of non-GAAP financial measures presented in this press release. See pages 12, 13 and 20 for reconciliations of each non-GAAP financial measure used in this release to the most directly comparable GAAP financial measure.

Consolidated Second Quarter Results and Operational Highlights

Total revenues increased 11.1% for the three months ended June 30, 2021 compared to the prior year driven by growth across all segments.

Operating income and adjusted operating income decreased 7.6% and 8.3%, respectively, for the three months ended June 30, 2021 compared to the prior year primarily due to the return of more normalized utilization levels in the Health Care Benefits segment following a significant decrease in utilization during the three months ended June 30, 2020 due to the COVID-19 pandemic. The decrease in both operating income and adjusted operating income in the three months ended June 30, 2021 was partially offset by increased prescription and front store volume, COVID-19 vaccinations and diagnostic testing in the Retail LTC segment as well as improved purchasing economics and increased pharmacy claims volume in the Pharmacy Services segment during the three months ended June 30, 2021.

Interest expense decreased $129 million, or 16.9%, for the three months ended June 30, 2021 compared to the prior year due to lower debt in the three months ended June 30, 2021.

The effective income tax rate was 25.3% for the three months ended June 30, 2021 compared to 24.6% for the three months ended June 30, 2020. The increase in the effective income tax rate was primarily due to the absence of the favorable impact associated with the resolution of several state and local income tax matters in the three months ended June 30, 2020, partially offset by the repeal of the non-deductible health insurer fee ("HIF") for 2021.

Paid down $2.4 billion of long-term debt, while returning $650 million to shareholders through dividends during the three months ended June 30, 2021. Since the close of the acquisition of Aetna Inc. in November 2018, the Company has repaid a net of $17.6 billion in long-term debt.

Administered more than 6 million COVID-19 tests and nearly 17 million COVID-19 vaccines nationwide in the second quarter. The Company maintains a strong commitment to vaccine and testing equity and continues to optimize site locations and targeted outreach initiatives in order to reach vulnerable populations.

Launched new Clinical Trial Services business that brings together innovation and expertise to drive greater access to clinical trials and create a more efficient, convenient experience to improve participant retention and research effectiveness. Core capabilities will include precision patient recruitment, innovative options for Phase III IV clinical trials and real-world evidence studies at CVS Pharmacy locations, in the home, or virtually.

Appointed Shawn Guertin as Executive Vice President and Chief Financial Officer, effective May 28, 2021, to help develop financial strategies to drive transformation at CVS Health. Previously, Guertin spent eight years at Aetna Inc. where he was Executive Vice President, Chief Financial Officer and Chief Enterprise Risk Officer.

Health Care Benefits Segment

The Health Care Benefits segment offers a full range of insured and self-insured ("ASC") medical, pharmacy, dental and behavioral health products and services. The segment results for the three and six months ended June 30, 2021 and 2020 were as follows

Total revenues increased 11.1% for the three months ended June 30, 2021 compared to the prior year primarily driven by growth in the Government Services business, partially offset by the unfavorable impact of the repeal of the HIF for 2021.

Adjusted operating income decreased 53.4% for the three months ended June 30, 2021 compared to the prior year. The decrease in adjusted operating income was primarily driven by the deferral of elective procedures and other discretionary utilization in response to the COVID-19 pandemic during the three months ended June 30, 2020.

The MBR increased from 70.3% to 84.1% in the three months ended June 30, 2021 compared to the prior year primarily driven by the impact of the COVID-19 pandemic during the three months ended June 30, 2020 described above and the repeal of the HIF for 2021.

Medical membership as of June 30, 2021 of 23.5 million decreased 116,000 members compared with March 31, 2021, primarily reflecting declines in Medicaid and Commercial products, partially offset by an increase in Medicare products. The decline in Medicaid membership reflects the loss of a large ASC customer during the three months ended June 30, 2021.

The segment experienced favorable development of prior-periods' health care cost estimates during the three months ended June 30, 2021 driven by favorable development in its Government Services business, primarily attributable to first quarter 2021 performance, partially offset by slightly unfavorable development in its Commercial business, primarily attributable to first quarter 2021 performance.

Prior years' health care costs payable estimates developed favorably by $709 million during the six months ended June 30, 2021, driven by favorable development in the Company's Government Services and Commercial businesses. This development is reported on a basis consistent with the prior years' development reported in the health care costs payable table in the Company's annual audited financial statements and does not directly correspond to an increase in 2021 operating results.

See the supplemental information on page 15 for additional information regarding the performance of the Health Care Benefits segment.

Pharmacy Services Segment

The Pharmacy Services segment provides a full range of pharmacy benefit management solutions to employers, health plans, government employee groups and government sponsored programs. The segment results for the three and six months ended June 30, 2021 and 2020 were as follows

Total revenues increased 9.8% for the three months ended June 30, 2021 compared to the prior year primarily driven by increased pharmacy claims volume, growth in specialty pharmacy and brand inflation, partially offset by continued price compression.

Adjusted operating income increased 32.3% for the three months ended June 30, 2021 compared to the prior year primarily driven by improved purchasing economics that reflected products and services of our group purchasing organization that was launched in the second quarter of 2020 and specialty pharmacy (including pharmacy and or administrative services for providers and 340B covered entities), as well as increased pharmacy claims volume. These increases were partially offset by continued price compression.

Total pharmacy claims processed increased 11.2% on a 30-day equivalent basis for the three months ended June 30, 2021 compared to the prior year. The increase was primarily driven by net new business, COVID-19 vaccinations and increased new therapy prescriptions, which were adversely impacted by the COVID-19 pandemic during the three months ended June 30, 2020. Excluding the impact of COVID-19 vaccinations, total pharmacy claims processed increased 8.4% on a 30-day equivalent basis for the three months ended June 30, 2021 compared to the prior year.

See the supplemental information on page 17 for additional information regarding the performance of the Pharmacy Services segment.

The Retail LTC segment fulfills prescriptions for medications, provides patient care programs, sells a wide assortment of health and wellness products and general merchandise, provides health care services through walk-in medical clinics, provides medical diagnostic testing, administers vaccinations and provides pharmacy services to long-term care facilities. The segment results for the three and six months ended June 30, 2021 and 2020 were as follows

Total revenues increased 14.2% for the three months ended June 30, 2021 compared to the prior year primarily driven by increased prescription volume, COVID-19 vaccinations and diagnostic testing and higher front store revenues across all product categories. These increases were partially offset by continued pharmacy reimbursement pressure. Prescription and front store volumes during the three months ended June 30, 2020 were adversely impacted by the COVID-19 pandemic, which resulted in lower new therapy prescriptions and reduced front store revenues due to shelter-in-place orders. COVID-19 vaccinations and diagnostic testing contributed nearly a third of the increase in the segment's revenues for the three months ended June 30, 2021 compared to the prior year, as the prior year included an immaterial impact from diagnostic testing and no COVID-19 vaccinations.

Adjusted operating income increased 93.9% for the three months ended June 30, 2021 compared to the prior year primarily driven by the increased prescription and front store volume described above, COVID-19 vaccinations and diagnostic testing and a $125 million gain from an anti-trust legal settlement recorded in the three months ended June 30, 2021. These increases were partially offset by continued pharmacy reimbursement pressure. COVID-19 vaccinations and diagnostic testing contributed approximately half of the increase in adjusted operating income for the three months ended June 30, 2021 compared to the prior year.

Prescriptions filled increased 14.2% on a 30-day equivalent basis for the three months ended June 30, 2021 compared to the prior year primarily driven by COVID-19 vaccinations, as well as the continued adoption of patient care programs and increased new therapy prescriptions, both of which were adversely impacted by the COVID-19 pandemic during the three months ended June 30, 2020. Excluding the impact of COVID-19 vaccinations, prescriptions filled increased 9.3% on a 30-day equivalent basis for the three months ended June 30, 2021 compared to the prior year.

See the supplemental information on page 18 for additional information regarding the performance of the Retail LTC segment.

2021 Full Year Guidance

The Company raised its full year 2021 GAAP diluted EPS guidance range to $6.35 to $6.45 from $6.24 to $6.36 and its full year 2021 Adjusted EPS guidance range to $7.70 to $7.80 from $7.56 to $7.68 and raised its full year 2021 cash flow from operations guidance range to $12.5 billion to $13.0 billion from $12.0 billion to $12.5 billion.

The adjustments between GAAP diluted EPS and Adjusted EPS include, as applicable, adding back amortization of intangible assets, integration costs related to the Company's acquisition (the "Aetna Acquisition") of Aetna Inc. ("Aetna") and an acquisition purchase price adjustment outside of the acquisition accounting measurement period.

Teleconference and Webcast

The Company will be holding a conference call today for investors at 8 00 a.m. (Eastern Time) to discuss its second quarter results. An audio webcast of the call will be broadcast simultaneously for all interested parties through the Investor Relations section of the CVS Health website at http investors.cvshealth.com. This webcast will be archived and available on the website for a one-year period following the conference call.

In addition, the Company will be hosting an Investor Day on December 9, 2021. Additional details will be available in mid-September 2021.

CVS Health is the leading health solutions company, delivering care in ways no one else can. We reach more people and improve the health of communities across America through our local presence, digital channels and our nearly 300,000 dedicated colleagues - including more than 40,000 physicians, pharmacists, nurses, and nurse practitioners. Wherever and whenever people need us, we help them with their health - whether that's managing chronic diseases, staying compliant with their medications, or accessing affordable health and wellness services in the most convenient ways. We help people navigate the health care system - and their personal health care - by improving access, lowering costs and being a trusted partner for every meaningful moment of health. And we do it all with heart, each and every day. Learn more at www.cvshealth.com.

Cautionary Statement Concerning Forward-Looking Statements

The Private Securities Litigation Reform Act of 1995 provides a safe harbor for forward-looking statements made by or on behalf of CVS Health Corporation. Statements in this press release that are forward-looking include, but are not limited to, Ms. Lynch's quotation, the information under the heading "2021 Full Year Guidance" and the information included in the endnotes and reconciliations. By their nature, all forward-looking statements are not guarantees of future performance or results and are subject to risks and uncertainties that are difficult to predict and or quantify. Actual results may differ materially from those contemplated by the forward-looking statements for a number of reasons as described in our Securities and Exchange Commission ("SEC") filings, including those set forth in the Risk Factors section and under the heading "Cautionary Statement Concerning Forward-Looking Statements" in our most recently filed Annual Report on Form 10-K and our Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2021.

You are cautioned not to place undue reliance on CVS Health's forward-looking statements. CVS Health's forward-looking statements are and will be based upon management's then-current views and assumptions regarding future events and operating performance, and are applicable only as of the dates of such statements. CVS Health does not assume any duty to update or revise forward-looking statements, whether as a result of new information, future events, uncertainties or otherwise.

CVS HEALTH CORPORATION

Condensed Consolidated Statements of Operations

CVS HEALTH CORPORATION

Condensed Consolidated Balance Sheets

CVS HEALTH CORPORATION

Condensed Consolidated Statements of Cash Flows

CVS HEALTH CORPORATION

Condensed Consolidated Statements of Cash Flows

Non-GAAP Financial Information

The Company uses non-GAAP financial measures to analyze underlying business performance and trends. The Company believes that providing these non-GAAP financial measures enhances the Company's and investors' ability to compare the Company's past financial performance with its current performance. These non-GAAP financial measures are provided as supplemental information to the financial measures presented in this press release that are calculated and presented in accordance with GAAP. Non-GAAP financial measures should not be considered a substitute for, or superior to, financial measures determined or calculated in accordance with GAAP. The Company's definitions of its non-GAAP financial measures may not be comparable to similarly titled measures reported by other companies.

Non-GAAP financial measures such as consolidated adjusted operating income, adjusted earnings per share (EPS) and adjusted income attributable to CVS Health exclude from the relevant GAAP metrics, as applicable amortization of intangible assets and other items, if any, that neither relate to the ordinary course of the Company's business nor reflect the Company's underlying business performance.

For the periods covered in this press release, the following items are excluded from the non-GAAP financial measures described above, as applicable, because the Company believes they neither relate to the ordinary course of the Company's business nor reflect the Company's underlying business performance

The Company's acquisition activities have resulted in the recognition of intangible assets as required under the acquisition method of accounting which consist primarily of trademarks, customer contracts relationships, covenants not to compete, technology, provider networks and value of business acquired. Definite-lived intangible assets are amortized over their estimated useful lives and are tested for impairment when events indicate that the carrying value may not be recoverable. The amortization of intangible assets is reflected in the Company's unaudited GAAP condensed consolidated statements of operations in operating expenses within each segment. Although intangible assets contribute to the Company's revenue generation, the amortization of intangible assets does not directly relate to the underwriting of the Company's insurance products, the services performed for the Company's customers or the sale of the Company's products or services. Additionally, intangible asset amortization expense typically fluctuates based on the size and timing of the Company's acquisition activity. Accordingly, the Company believes excluding the amortization of intangible assets enhances the Company's and investors' ability to compare the Company's past financial performance with its current performance and to analyze underlying business performance and trends. Intangible asset amortization excluded from the related non-GAAP financial measure represents the entire amount recorded within the Company's GAAP financial statements, and the revenue generated by the associated intangible assets has not been excluded from the related non-GAAP financial measure. Intangible asset amortization is excluded from the related non-GAAP financial measure because the amortization, unlike the related revenue, is not affected by operations of any particular period unless an intangible asset becomes impaired or the estimated useful life of an intangible asset is revised.

During the three and six months ended June 30, 2021 and 2020, acquisition-related integration costs relate to the Aetna Acquisition. The acquisition-related integration costs are reflected in the Company's unaudited GAAP condensed consolidated statements of operations in operating expenses within the Corporate Other segment.

In June 2021, the Company received $61 million related to a purchase price working capital adjustment for an acquisition completed during the first quarter of 2020. The resolution of this matter occurred subsequent to the acquisition accounting measurement period and is reflected in the Company's unaudited GAAP condensed consolidated statements of operations for the three and six months ended June 30, 2021 as a reduction of operating expenses within the Health Care Benefits segment.

The corresponding tax benefit or expense related to the items excluded from adjusted income attributable to CVS Health and Adjusted EPS above. The nature of each non-GAAP adjustment is evaluated to determine whether a discrete adjustment should be made to the adjusted income tax provision.

See endnotes (1) and (2) on page 21 for definitions of non-GAAP financial measures. Reconciliations of each non-GAAP financial measure to the most directly comparable GAAP financial measure are presented on pages 12, 13 and 20.

Reconciliations of Non-GAAP Financial Measures to the Most Directly Comparable GAAP Financial Measures

Adjusted Operating Income

The following are reconciliations of consolidated operating income (GAAP measure) to consolidated adjusted operating income, as well as reconciliations of segment GAAP operating income to segment adjusted operating income

Adjusted Earnings Per Share

The following are reconciliations of net income attributable to CVS Health to adjusted income attributable to CVS Health and calculations of GAAP diluted EPS and Adjusted EPS

Supplemental Information

The Company's segments maintain separate financial information, and the Company's chief operating decision maker (the "CODM") evaluates the segments' operating results on a regular basis in deciding how to allocate resources among the segments and in assessing segment performance. The CODM evaluates the performance of the Company's segments based on adjusted operating income, which is defined as operating income (GAAP measure) excluding the impact of amortization of intangible assets and other items, if any, that neither relate to the ordinary course of the Company's business nor reflect the Company's underlying business performance as further described in endnote (1). The Company uses adjusted operating income as its principal measure of segment performance as it enhances the Company's ability to compare past financial performance with current performance and analyze underlying business performance and trends.

The following is a reconciliation of financial measures of the Company's segments to the consolidated totals

_____________________________________________

(a)Total revenues of the Pharmacy Services segment include approximately $2.8 billion and $2.6 billion of retail co-payments for the three months ended June 30, 2021 and 2020, respectively, and $6.2 billion and $6.0 billion of retail co-payments for the six months ended June 30, 2021 and 2020, respectively.