As of about 10:50 AM IST (05:20 GMT), Wednesday 4 November 2026. Figures are attributed to the sources that published them; anything not independently confirmed is flagged.
CVS Health plans to break itself up into two publicly traded companies, separating its US retail pharmacy chain from its Aetna health insurer and Caremark pharmacy benefit manager (PBM), the Wall Street Journal reported on Tuesday 3 November, quoting the company. The split would unwind much of the logic behind CVS's $78 billion purchase of Aetna nearly a decade ago.
"We believe based off of where we are and how we're performing, the businesses are best served by splitting," Chief Executive David Joyner told the Journal, according to Reuters. "We're basically taking what I believe is one great company and making it two." CNBC, citing the Journal, said the separation is expected in the first half of 2028. The Financial Times reported the plan earlier on Tuesday.
CVS did not respond to a Reuters request for comment. The company is due to report third-quarter results on Wednesday 4 November, when it may give more details. Until it does, the structure and timing described below are as reported, not confirmed by CVS.
How the two companies would look
| Company | What it would hold (as reported) |
|---|---|
| CVS Health (led by David Joyner) | Aetna insurance, Caremark PBM, Oak Street Health primary care clinics, Signify Health home visits, specialty-drug business |
| CVS Pharmacy (new) | Retail drugstores (about 9,000 in the US), mail-order pharmacy, MinuteClinic |
Joyner told the Journal that the two companies would keep some commercial agreements with each other. Shareholders would be expected to hold stakes in both, Mizuho analyst Ann Hynes said.
Why now
- Valuation: Hynes said CVS trades at 10.8 times her 2027 adjusted earnings estimate, against a 10-year sector average of 15.7 times, and that separating the insurance business "could unlock meaningful multiple expansion potential".
- Regulation: Joyner told the Journal regulation was not driving the decision. But PBMs face growing political scrutiny, the Federal Trade Commission settled a case with CVS this summer that restricts how Caremark deals with other pharmacies, and some states want limits on what businesses one health company can own. Evercore ISI's Elizabeth Anderson said a split could ease some state-level concerns about a company owning both a PBM and drugstores.
- Retail pressure: US pharmacy chains are losing shoppers to Amazon and to home delivery of prescriptions. Rival Walgreens was bought by private equity firm Sycamore Partners last year.
Market reaction
CVS shares were up 0.1% in extended trading on Tuesday, Reuters said, while CNBC described them as slightly higher. The company's market value is about $117 billion. Its shares have recovered under Joyner, who took over in October 2024 after the company explored options, including a possible breakup, that year.
What to watch
- Whether CVS confirms the plan, its timetable and which company keeps which units with its Q3 results on Wednesday.
- How debt and costs would be divided, and whether the split needs regulatory or shareholder approval.
- Any response from investors and regulators on PBM rules.
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