CVS Health said it will split into two companies, separating about 9,000 retail pharmacies from its Aetna insurance and Caremark pharmacy-benefit operations. The separation is expected to finish in the first half of 2028. CVS Health, led by CEO David Joyner, keeps Aetna, Caremark, specialty pharmacy, Oak Street Health and Signify Health; CVS Pharmacy, led by Prem Shah, takes the stores, MinuteClinics, mail-order pharmacies and the Health100 platform.
The news overshadowed a strong quarter: third-quarter profit was $2.09 per share against a $1.65 analyst average, and CVS raised its 2026 adjusted profit forecast to at least $8.20 per share. It guided 2027 to at least $8.65 per share, above the $8.53 estimate. Shares still fell about 13% in afternoon trading, putting nearly $15 billion of market value at risk.
UBS analyst Kevin Caliendo called the split a surprise that may look like a defensive move against regulation, and Barclays analyst Andrew Mok said investors want more financial detail. It makes CVS a standalone pharmacy chain for the first time since buying Caremark in 2006.