CVS Health’s adjusted fourth-quarter profit handily beat Wall Street’s estimates, even as the drugstore chain and pharmacy benefits manager dealt with rising costs in its insurance division

CVS Health reported $4.6 billion in 2024 profit including $1.6 billion in the fourth quarter as its health insurance business works to overcome rising medical expenses.

CVS Health reported a smaller-than-expected drop in fourth-quarter profit on Wednesday as the pace of medical cost increases slowed at the healthcare conglomerate and revenues jumped in its pharmacy business.

CVS Health’s total revenue for the full year 2024 increased 4.2% to $372.8 billion, but within the healthcare benefits segment, the company experienced higher utilization, an unfavorable impact of Medicare Advantage star ratings payment and higher levels of care in Medicaid.