CVS Health (NYSE:CVS) just pulled off a major surprise, delivering stronger-than-expected earnings and sending its stock soaring 14% as of 11.46am todayits biggest one-day gain since 2008. Investors, desperate for signs of a turnaround after a brutal 2024, got exactly that. Adjusted EPS came in at $1.19, crushing Wall Street's $0.91 estimate, while revenue climbed 4.2% year-over-year to $97.7 billion. The company also reaffirmed its 2025 outlook, projecting adjusted EPS between $5.75 and $6.00. That's exactly what analysts needed to see, reinforcing the belief that CVS's worst days might finally be in the rearview.

• Warning! GuruFocus has detected 4 Warning Signs with CVS.

But the company isn't out of the woods yet. Its health insurance arm, Aetna, continues to be a weak link, with adjusted operating income collapsing to $307 million from $5.6 billion a year ago. Higher medical costs and unfavorable Medicare Advantage star ratings have taken a toll, forcing CVS to lean more heavily on its pharmacy and consumer wellness segment. CEO David Joyner acknowledged the challenges but emphasized that the company is actively tackling industry-wide pressures and sees a path to recovery. Analysts have set an earnings floor of around $5.50 for 2025hitting that mark (or higher) could be key to keeping the stock's momentum alive.

CVS's rebound comes at a time when its healthcare peers are all over the map. Humana (NYSE:HUM) managed to impress with strong results, but UnitedHealth (NYSE:UNH) and Cigna (NYSE:CI) stumbled, raising fresh concerns over Medicare Advantage profitability. For CVS, the question now is whether this rally has legs. A new leadership team, strategic cost-cutting, and a renewed focus on its strongest segments are all in play. If management can execute, this could be the start of a sustained comebackif not, today's rally might just be a short-lived bounce.