Update — November 4, 2026: CVS Health plans to separate into two publicly traded companies by the first half of 2028, splitting its retail pharmacy business from its insurance, pharmacy-benefit and health-services operations.
One company, retaining the CVS Health name, would include Aetna, CVS Caremark, CVS Specialty, Oak Street Health and Signify Health. The other, CVS Pharmacy, would include approximately 9,000 retail pharmacies, mail pharmacy, MinuteClinic and the Health100 technology platform.
Current CVS Health shareholders are expected to own shares in both companies. David Joyner would remain chief executive of CVS Health, while Prem Shah would lead CVS Pharmacy. The proposed tax-free separation still requires final board approval, an effective securities registration statement and other customary conditions.
CVS shares closed down 12.5% at $79.96 on Wednesday, cutting nearly $15 billion from the company's market value, Reuters reported. Analysts cited surprise at the breakup plan and limited financial detail about the future companies. The closing move is a market reaction, not a measure of the separation's eventual results.
Earlier Wednesday, CVS raised its full-year outlook after third-quarter revenue and profit increased, with improved insurance results helping offset pressure in retail pharmacy.
The company reported revenue of $108.4 billion for the quarter ended September 30, up 5.4% from a year earlier. GAAP diluted earnings were $1.68 per share, compared with a $3.13 loss in the prior-year quarter, when results included a large goodwill impairment. Adjusted earnings rose to $2.09 per share from $1.60.
In Health Care Benefits, the medical benefit ratio — the share of premium revenue spent on members' medical care — improved to 91.3% from 92.8% a year earlier. The Pharmacy & Consumer Wellness segment recorded a 2% revenue decline, reflecting drug-price reductions and reimbursement pressure.
Operating cash flow totaled $15.3 billion through the first nine months of 2026. CVS now expects full-year GAAP diluted earnings of at least $6.98 per share, adjusted earnings of at least $8.20 per share and operating cash flow of at least $15.5 billion.
Until the separation is completed, CVS said its businesses will continue operating together. The plan does not by itself change individual insurance benefits, prescription coverage or pharmacy access.
Sources: - CVS Health, separation announcement, November 4, 2026 - Reuters, November 4, 2026 - CVS Health, third-quarter 2026 earnings materials, November 4, 2026