CVS Health plans to divide its business into two separately traded companies, separating retail pharmacy operations from insurance, pharmacy-benefit management and care delivery. Announced November 4, 2026, the restructuring is expected to be completed in the first half of 2028, subject to regulatory, tax and other customary conditions.
The separation will create a healthcare solutions company retaining the CVS Health name and a standalone retail pharmacy and community-care company called CVS Pharmacy. The first business will combine health insurer Aetna, pharmacy benefit manager CVS Caremark, CVS Specialty, primary-care provider Oak Street Health and home-based care company Signify Health. David Joyner, CVS Health’s current chairman and chief executive, will lead it.
CVS Pharmacy will include approximately 9,000 retail locations, mail-order pharmacy operations, MinuteClinic sites and the Health100 technology services business. Prem Shah, CVS Health’s current group president, will assume the reins as CEO. Both organizations are expected to have dedicated management teams and independent capital structures.
Existing CVS Health shareholders will receive ownership stakes in both businesses. The separation is intended to qualify as tax-free for the company and its shareholders under U.S. federal tax rules. CVS expects each company to maintain an investment-grade credit profile, generate substantial free cash flow and have flexibility to fund its priorities and pay dividends.
Chief Executive David Joyner explained that the restructuring is designed to give each business a clearer strategic direction, strengthen consumer engagement and make healthcare more affordable and easier to navigate. He said the insurance, pharmacy-benefit and care-delivery operations would remain connected within the healthcare solutions company, while the retail pharmacy business would be able to expand its role as a community healthcare destination.
The decision follows years of expansion that made CVS one of the country’s largest integrated healthcare groups. Its acquisitions included Aetna in 2018 for approximately $78 billion, as well as purchases that expanded its primary-care and home-health operations. The strategy sought to connect insurance coverage, prescription services and patient care within one organization.
However, the model has faced growing scrutiny. Policymakers and regulators have questioned whether companies owning insurers, pharmacy-benefit managers and pharmacies can create conflicts of interest or restrict competition. CVS and other major healthcare groups have also faced calls for greater transparency around prescription pricing and the role of pharmacy-benefit managers.
CVS said the separation followed a strategic review and was not driven by regulatory pressure. Joyner characterized the move as an opportunity to build on operational progress rather than withdraw from healthcare services.
The company also reported stronger-than-expected third-quarter results alongside the restructuring. Adjusted earnings reached over $2 per share, above analysts’ average forecast of $1.65. CVS raised its 2026 adjusted earnings outlook to at least $8.20 per share and expects operating cash flow of at least $15.5 billion this year.
Until the transaction closes, CVS will continue operating as one company. Customer prescriptions, healthcare services and insurance benefits are expected to continue without interruption. The company will provide further details as the process advances.
The proposed structure will also preserve selected commercial arrangements, allowing the companies to cooperate where useful while pursuing separate operating and investment priorities independently.
CVS Health Announces Major Business Separation
CVS Health has announced plans to separate its operations into two independent, publicly traded companies. The strategic move will divide the company’s healthcare solutions and insurance businesses from its retail pharmacy and community healthcare operations. The separation is expected to create more focused organizations with greater flexibility to serve patients, customers, and healthcare partners. CVS Health
What Will the Two CVS Health Companies Include?
The healthcare solutions company will continue under the interim name CVS Health and include major businesses such as Aetna, CVS Caremark, CVS Specialty, Oak Street Health, and Signify Health. The second company, CVS Pharmacy, will include approximately 9,000 retail pharmacies, mail pharmacy services, MinuteClinic, virtual care, and Health100 technology services.
