“As we have discussed previously, 2025 is a transition year for CVS CostVantage and we believe the implementation of this model positions us to bend the trajectory of the PCW business over time.”

In context

“throughout 2025. This initial guidance is consistent with the preview we presented last quarter, where we noted that our initial outlook for this segment would be below our long term growth framework, but we prudently reflect opportunities for upside over the course of the year. We expect healthcare delivery performance to improve starting in 2026 as the current medical cost trends experienced across the industry are more appropriately reflected in rates and plan bids and our continued investments in this business mature. Now for our pharmacy and consumer wellness segment, we project script growth of approximately 3.5% and revenue of approximately $134 billion. We expect adjusted operating income to decline approximately 5%, in line with our long term guidance framework, to $5.48 billion. As we have discussed previously, 2025 is a transition year for CVS CostVantage and we believe the implementation of this model positions us to bend the trajectory of the PCW business over time. We expect interest expense to increase approximately $300 million as we annualize the expense associated with our debt offerings in May and December of 2024. We project our tax rate to be approximately 25.5%. We also expect our share count to increase modestly to approximately 1.271 billion shares, and we are not contemplating any share repurchases in 2025. Finally, we expect cash flow from operations to be approximately $6.5 billion. The operating cash flow decline versus 2024 is primarily driven by late year timing items that were pulled forward into 2024 cash flow, as well as the impact of lower risk membership on healthcare costs payable reserves and risk-adjusted revenue accruals, partially offset by improved operating performance in our healthcare benefits business. Over the 2024 an”