WOONSOCKET, R.I. — CVS Health said on Wednesday, November 4, 2026, that it will split into two separate publicly traded companies, separating its retail pharmacy business from its health insurance and pharmacy-benefit operations in a major reversal of the integrated healthcare model it spent years building.
The company said the separation is expected to be completed in the first half of 2028. Upon completion, shareholders will own shares in both companies. One of the two companies will keep the CVS Health name and will be led by current chief executive David Joyner, while Prem Shah, the group's group president, will become chief executive of CVS Pharmacy.
The announcement came alongside third-quarter results that beat expectations, and it lands at a moment of growing scrutiny from lawmakers and regulators of vertically integrated healthcare companies — firms that control several links in the chain from insurance to drug benefits to the pharmacy counter.
Illustration: A pharmacist helping a customer at a pharmacy counter, representing CVS Health's retail pharmacy business.
What Happened
CVS Health announced on Wednesday that it will divide itself in two. The retail pharmacy arm — the Pharmacy and Consumer Wellness segment, which includes roughly 9,000 retail pharmacies — will stand alone as CVS Pharmacy under Shah. The other company will retain the CVS Health name under Joyner and will house the insurance and drug-benefit operations built around health insurer Aetna and pharmacy-benefit manager Caremark.
Shares of the company were up 1.7 percent in premarket trading after the announcement, according to Reuters, which first reported the details of the plan.
"From a position of strength, and a focus on the long term, we plan to create two focused companies to improve consumer engagement, affordability, and care coordination," Joyner said in the company's announcement, as reported by Reuters.
Separately, CVS reported third-quarter results on the same day. Its per-share profit of $2.09 beat analysts' average estimate of $1.65, according to data compiled by LSEG and reported by Reuters. The company also raised its annual adjusted profit forecast to at least $8.20, while saying it was maintaining a cautious view for the remainder of the year in light of continued elevated medical cost trends and potential macroeconomic headwinds.
The scale of the two halves shows why the split matters. CVS said its Pharmacy and Consumer Wellness segment generated $139.4 billion in revenue in 2025. Its healthcare benefits segment reported revenue of $143.4 billion in 2025, while its pharmacy-benefit management unit brought in $190.4 billion. Those figures, reported by the company, underline that neither side is a minor spin-off: each is a very large business in its own right.
Background
CVS built its conglomerate through a series of acquisitions, most notably its roughly $78 billion purchase of health insurer Aetna in 2018. The logic at the time was that combining retail pharmacy, health insurance and pharmacy-benefit management under one roof would let the company coordinate care, steer patients to its own services and control costs across the system.
That model is now under pressure from several directions. Years of consolidation across the industry have raised concerns that companies controlling multiple parts of the healthcare supply chain could face conflicts of interest, limit competition and contribute to rising healthcare costs, Reuters reported. Critics argue in particular that owning a pharmacy-benefit manager as well as a retail pharmacy chain can create conflicts of interest and reduce competition.
Health insurers have also grappled with elevated medical costs in recent years as consumers increased their use of healthcare services, prompting companies to raise premiums, trim benefits and exit less profitable plans. CVS had already explored options including a potential breakup in 2024, Reuters reported at the time, as the healthcare giant grappled with challenges across its businesses.
Its drugstores face their own pressures. CVS's stores are grappling with competition from Amazon and a shift toward prescription delivery that has reduced store visits, which traditionally generated additional retail purchases, Reuters reported. The challenges underscore the increasingly difficult economics of large US drugstore chains.
CVS is not the first large pharmacy group to rethink its shape. Rival Walgreens sold its Boots pharmacy business and was acquired by private equity firm Sycamore Partners last year following a prolonged sale process, Reuters noted.
Illustration: A family reviewing a health insurance plan with a pharmacist and a doctor, representing the insurance and benefits side of the business.
Why It Matters
For patients and customers, the split could change how the pieces of their healthcare fit together. Under the integrated model, a CVS customer might have Aetna insurance, a Caremark drug benefit and a CVS pharmacy all within one company. Once separated, those businesses will answer to different managements, boards and shareholders, and will have to negotiate with each other — and with rivals — more like independent firms.
That independence is, for supporters of the split, the point. Barclays analysts viewed the potential split positively, Reuters reported, saying the timing was favorable as CVS's Pharmacy and Consumer Wellness business had returned to growth after years of underperformance. A separation could also help address regulatory scrutiny of CVS's vertically integrated model, the analysts said.
For regulators and lawmakers, the move is a test case. If one of America's largest healthcare conglomerates voluntarily unwinds its vertical integration, it may ease some of the conflict-of-interest concerns that have driven scrutiny — or it may simply show that the economics of running pharmacies, insurance and drug benefits together no longer work as well as they once did. Either way, other vertically integrated healthcare companies will be watching closely.
For investors, the split creates two more focused bets instead of one sprawling one: a pharmacy and consumer-wellness company exposed to store traffic, prescription delivery and retail competition, and a health-benefits and pharmacy-benefit company exposed to medical costs, premiums and drug pricing. Because existing shareholders will own shares in both companies after the separation, they will not be forced to choose — but the market will soon price each business on its own merits.
For employees and the wider healthcare workforce, the practical effects will take time to emerge. The company has named its two future chief executives, but the detailed structure, leadership teams and any effects on jobs, store footprints or plan networks will be set out as the separation progresses toward its 2028 target.
What Happens Next
The separation is expected to be completed in the first half of 2028, giving CVS more than a year to work through the legal, regulatory, financial and operational steps involved in dividing a company of this size. Shareholders, regulators and business partners will all have a say along the way, and the company will need to explain how contracts, data systems and customer relationships will be handled across the divide.
Analysts and investors will also watch whether the pharmacy business can sustain its return to growth once it stands alone, and whether the insurance and benefits business can manage elevated medical costs without the pharmacy arm alongside it. The company's cautious outlook for the rest of the year — despite beating third-quarter expectations and raising its annual profit forecast — suggests management expects medical cost pressures to persist.
Regulatory scrutiny of vertically integrated healthcare will not disappear with this announcement. Lawmakers and regulators have been examining the whole sector, not just CVS, and the split may become part of a broader debate about whether pharmacy-benefit managers, insurers and pharmacies should be owned by the same companies at all.
More detail is expected in the coming quarters as CVS sets out the separation structure, the allocation of debt and assets between the two companies, and the timetable for shareholder and regulatory approvals. Until then, the November 4 announcement marks the end of an era for one of America's most ambitious healthcare combinations — and the start of a long, closely watched unwinding.
Illustration: Two office buildings diverging from a single road, representing a large company splitting into two focused businesses.
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FAQ
What did CVS Health announce on November 4, 2026?
CVS Health announced it will split into two companies, separating its retail pharmacy business from its insurance and pharmacy-benefit operations, with completion expected in the first half of 2028.
Which businesses go to which company?
The Pharmacy and Consumer Wellness segment, including roughly 9,000 retail pharmacies, becomes CVS Pharmacy under Prem Shah. The other company keeps the CVS Health name under David Joyner and houses the Aetna insurance and Caremark pharmacy-benefit operations.
What happens to existing CVS shareholders?
Upon completion of the separation, CVS Health shareholders will own shares in both companies, according to the company's announcement as reported by Reuters.
Why is CVS splitting up now?
The company points to creating two focused companies to improve consumer engagement, affordability and care coordination. The move also comes amid regulatory scrutiny of vertically integrated healthcare companies and pressures on both drugstores and health insurers.
Does the split affect CVS customers immediately?
No. The separation is not expected to be completed until the first half of 2028, and the detailed structure and customer arrangements will be set out as the process progresses.
Sources
Reuters, "CVS Health to split in two, separating pharmacy business from insurance," November 4, 2026. Reuters, "How CVS built a healthcare empire it now plans to split," November 4, 2026.
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