The split would unwind acquisitions made over roughly two decades, including the 2007 Caremark combination and the 2018 Aetna deal, that built the Woonsocket, Rhode Island-based company into a large integrated healthcare business.

Under the plan, the healthcare solutions company will keep the CVS Health name on an interim basis and will hold Aetna, CVS Caremark, CVS Specialty, Oak Street Health and Signify Health. David Joyner, currently the company's chairman and chief executive, will hold the same roles once the separation is complete. The second company, to be called CVS Pharmacy, will hold the company's roughly 9,000 retail pharmacies, its mail pharmacy business, MinuteClinic and the Health100 technology services business. Prem Shah, currently a CVS Health group president, will serve as chief executive of CVS Pharmacy.

The separation is intended to be tax-free to CVS and its shareholders for U.S. federal income tax purposes, and shareholders will own shares in both companies. CVS said it expects to complete the split in the first half of 2028, subject to customary conditions, including final approval by its board of directors. Until then, the company said it will continue to operate as it does today.

The move reverses a strategy CVS began in 2007, when it combined with Caremark to join drugstores and pharmacy-benefit management, and continued with its $78 billion acquisition of Aetna in 2018, which added health insurance to the mix. Regulators have scrutinized companies that combine insurance, pharmacy benefits and drugstores under one roof, according to Global Banking & Finance's coverage of the announcement.

CVS shares fell about 10% on Wednesday after the announcement.

The company reported its third-quarter 2026 results on the same day and raised its full-year 2026 guidance

References

1. 1.CVS Health press release/SEC 8-K (Nov. 4, 2026) — details of the planned separation, business lines, and leadership of each new company
2. 2.CNBC — reporting on the $117 billion market value, 10% share drop, and CEO David Joyner's comment that the split comes 'out of a position of strength'
3. 3.CNN — reporting on the $117 billion figure, the tax-free nature of the transaction, and historical context on the Aetna and Caremark mergers
4. 4.Reuters (via Investing.com) — confirmation that the split separates retail pharmacy from insurance and pharmacy-benefit operations amid industry consolidation scrutiny
5. 5.CVS Health investor relations release — confirmation of executive assignments: David Joyner to lead the healthcare company, Prem Shah to lead CVS Pharmacy
6. 6.SEC Form 10-Q (CVS Health, Q3 2026) — confirmation that separation is expected to complete in the first half of 2028, subject to board approval and other conditions
7. 7.Becker's Payer Issues — confirmation that the separation is intended to be tax-free to CVS Health and its shareholders
8. 8.SEC Form 10-Q for the period ended Sept. 30, 2026 (subsequent-event note): CVS announced on Nov. 4, 2026 its intention to separate into two independent, publicly traded companies.