CVS Health Announces Split Into Two Public Companies by 2028
CVS Health is splitting into two independent, publicly traded companies, separating its roughly 9,000 CVS Pharmacy stores from its Aetna insurance and CVS Caremark pharmacy benefit businesses.
The company announced the plan Wednesday, November 4, 2026, alongside its third-quarter earnings. The separation is expected to close in the first half of 2028, and in the meantime, CVS says customers, patients, and clients will keep receiving their medicine, care, benefits, and services without interruption.
One company will keep the CVS Health name and house Aetna, CVS Caremark, CVS Specialty, Oak Street Health, and Signify Health, with current Chairman and CEO David Joyner at the helm. Prem Shah, now Group President, will become CEO of the second company, CVS Pharmacy. That business will include the retail stores, mail pharmacy, MinuteClinic (including virtual care), and the Health100 technology services unit, according to the official CVS Health announcement.
The breakup reverses nearly two decades of deal-making that began when CVS merged with pharmacy benefit manager Caremark in 2007 and continued with its $69 billion acquisition of Aetna in 2018, creating what CNN described as a $117 billion healthcare empire. Joyner summed up the move by saying the company is “taking what I believe is one great company and making it two.” CVS spent the past 20 years trying to become a one-stop health destination, which is why the announcement caught Wall Street off guard. A Leerink Partners analyst called the split a total surprise.
Growing scrutiny from lawmakers and regulators over vertically integrated healthcare companies like CVS, which own insurers, pharmacy benefit managers, and pharmacies under one roof, forms a major backdrop to the decision. Pharmacy benefit managers such as Caremark have drawn bipartisan criticism from regulators, consumer watchdogs, and lawmakers over their role in rising drug prices. Joyner knows that fight firsthand: he ran Caremark before becoming CEO and was questioned by Congress in 2024 about PBMs and drug costs.
Millions of people who fill prescriptions at CVS or carry an Aetna card won’t see any changes right now, since CVS says they will continue to operate, compete, and serve customers as they do today until the separation is complete. That means no need to switch pharmacies, transfer prescriptions or shop for a new plan because of this news. The scale is significant: as of September 30, Caremark served about 87 million plan members, and CVS Health’s insurance products reached an estimated 37 million people.
The biggest changes for shoppers will likely arrive after 2028, when CVS Pharmacy operates as a standalone company and plans to expand services offered by their nearly 30,000 pharmacists. The pharmacy business also intends to seek partnerships with more insurers, pharmacy benefit managers, and drug manufacturers, which could eventually widen the range of health plans that work smoothly at CVS counters. Aetna members, meanwhile, should keep an eye out for any plan updates as the new CVS Health takes shape.
CVS shares, which had climbed about 15% this year, dropped 2% in premarket trading Wednesday after briefly ticking up on the news. The company also posted higher third-quarter earnings and revenue, driven mainly by its Health Care Benefits segment, and raised its full-year guidance. Existing shareholders will own stock in both companies, and the transaction is designed to be tax-free for U.S. federal income tax purposes.
Several steps remain before the split becomes official, including final approval from the CVS Health board, an effective Form 10 registration with the SEC, and confirmation of the deal’s tax-free treatment. Goldman Sachs is serving as lead financial and strategic advisor, with Consello also advising the company.
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