CVS Health to split into two independent companies by 2028
CVS Health will divide into two public companies, unwinding its integrated model of pharmacies and insurance.
CVS Health has announced plans to split its business in two. PATRICK T. FALLON/AFP via Getty Images (Photo via STAT)
CVS Health announced on Nov. 4, 2026, that it will separate into two independent, publicly traded companies, marking a significant reversal of the firm's long-standing strategy of vertical integration. The move follows years of consolidation, including the 2018 acquisition of Aetna and the 2007 purchase of Caremark.
The separation, which is expected to be completed in the first half of 2028, will result in two distinct entities. The first company, which will retain the CVS Health name in the interim, will focus on healthcare solutions and include Aetna, CVS Caremark, CVS Specialty, Oak Street Health, and Signify Health. David Joyner, the current Chairman and CEO of CVS Health, will lead this organization as its Chairman and CEO.
The second company, to be named CVS Pharmacy, will encompass approximately 9,000 retail pharmacies, mail pharmacy services, MinuteClinic, and the Health100 technology business. Prem Shah, currently serving as Group President of CVS Health, has been named CEO of the new retail-focused company.
Company leadership described the decision as a strategic evolution aimed at improving consumer engagement, affordability, and care coordination. David Joyner stated that the plan is intended to create two focused companies to better address the needs of the current healthcare environment. The separation is intended to be tax-free to the company and its shareholders.
The announcement comes amid legislative and regulatory scrutiny regarding the influence of vertically integrated healthcare conglomerates on costs. While analysts have noted that the move reflects a shift in industry thinking, with Forrester Principal Analyst Arielle Trzcinski observing that the company is acknowledging that bigger is not always better, CVS leadership maintained that the decision is a strategic choice rather than a response to regulatory distress.
In its most recent financial report, CVS Health recorded third-quarter net income of $2.17 billion on total revenues of $108.4 billion. The two companies will continue to operate jointly until the separation process is finalized in 2028.