CVS to Split Into Two Companies

CVS Health will divide into two separate public companies. The split will separate the nation’s largest pharmacy chain from its insurance and health benefits operations. This change affects millions of patients, pharmacists, and investors across the United States.

The company announced the move on November 4, 2026. The decision follows a strategic review by the board of directors. The separation aims to create two distinct leaders in the healthcare sector. Each new entity will focus on specific aspects of care delivery and retail services.

One company will retain the CVS Health name. It will include Aetna, CVS Caremark, CVS Specialty, Oak Street Health, and Signify Health. This entity will operate as a leading healthcare solutions provider. It will manage insurance, pharmacy benefits, and value-based care services.

The second company will be named CVS Pharmacy. It will consist of approximately 9,000 retail stores, mail pharmacy services, MinuteClinic locations, and the Health100 technology business. This group will function as a standalone retail pharmacy and community healthcare provider. It will serve as a primary point of access for consumer health needs.

David Joyner, the current chairman and chief executive officer, will lead the healthcare solutions company. Prem Shah, currently the group president, will become the chief executive officer of CVS Pharmacy. Additional leadership roles and board members will be announced later. The company stated that customers and patients will continue to receive their medicines and services without interruption during the transition.

The separation is expected to be completed in the first half of 2028. The process is intended to be tax-free for U.S. federal income tax purposes. Both new companies are expected to hold solid investment grade ratings. They will each have the financial capacity to pay dividends and invest in strategic priorities.

Shareholders of CVS Health will own shares in both resulting companies. The split requires final board approval and regulatory filings with the Securities and Exchange Commission. The company aims to use the separation to increase agility and improve efficiency in both sectors.

CVS Health released its third quarter 2026 financial results on the same day. The company raised its full-year 2026 guidance. It will hold an investor conference call at 8:00 a.m. ET on November 4 to discuss the results and the planned separation. The call will be available through the company’s investor relations website.

Goldman Sachs is serving as the lead financial advisor for the transaction. Consello is acting as a financial and strategic advisor. Wachtell, Lipton, Rosen & Katz is providing legal counsel. The company will provide additional information as the separation process progresses.