CVS Health Split: Drugstores to Become Their Own Company as Aetna Profit Nearly Triples

CVS Health on Wednesday, Nov. 4, 2026, said it plans to split into two publicly traded companies by the first half of 2028. Under the CVS Health split, one company would keep the insurance and pharmacy-benefit businesses, and the other would run its roughly 9,000 retail drugstores. The company announced the plan alongside third-quarter results that beat its own forecasts. It also raised its full-year profit outlook for the third time this year.

Key figures: Split targeted by first half of 2028 · about 9,000 stores move to CVS Pharmacy · Q3 revenue $108.4 billion (+5.4%) · adjusted EPS $2.09 vs $1.60 · 2026 adjusted EPS guidance raised to at least $8.20 · operating cash flow guidance at least $15.5 billion

What the CVS Health split would create

The company plans a spinoff that it expects to be tax-free to shareholders. They would hold shares in both companies after the separation. The parent, which keeps the CVS Health name, would hold Aetna, Caremark, CVS Specialty, Oak Street Health and Signify Health. David Joyner, the current chief executive, would continue to run it.

The new company, CVS Pharmacy, would take the store chain, the mail-order pharmacy, MinuteClinic and the company’s Health100 platform. Prem Shah, who leads the pharmacy business now, would become its CEO. The separation still needs final board approval, a Form 10 registration filed with the Securities and Exchange Commission and confirmation of its tax treatment, according to the company’s release and its 8-K filing with the SEC.

The Wall Street Journal first reported the plan. The move follows a long run of pressure on U.S. drugstores. Axios noted that rival Walgreens was taken private by Sycamore Partners, which then broke it up. Axios also noted that Helena Foulkes, a former president of CVS Pharmacy, was just elected governor of Rhode Island, where CVS is based.

Third-quarter results

CVS reported revenue of $108.4 billion for the quarter ended Sept. 30, up 5.4% from $102.9 billion a year earlier. It earned $1.68 a share under generally accepted accounting principles (GAAP), compared with a loss of $3.13 a share in the third quarter of 2025, when it took large charges. Adjusted earnings came to $2.09 a share, up from $1.60.

The insurance arm drove the gain. Health Care Benefits, which is mostly Aetna, posted adjusted operating income of $912 million, nearly triple the $314 million of a year earlier. Its medical benefit ratio, the share of premiums spent on patient care, improved to 91.3% from 92.8%. Health Services, which includes the Caremark pharmacy benefit manager, grew revenue 9.5% to $54.0 billion.

The pharmacy segment that would become the new company was the only one whose revenue shrank. Pharmacy & Consumer Wellness revenue slipped to $35.5 billion from $36.2 billion. Its adjusted operating income still rose to $1.64 billion from $1.48 billion.

CVS by the numbers

Analysis: The charts show why the split is easier to argue now than a year ago. Aetna’s profit swing of about $600 million accounts for most of the company’s improvement this quarter, while the retail unit has the smallest sales base of the three segments and is shrinking. On its own, CVS Pharmacy would have about $142 billion a year in revenue if its third quarter is multiplied by four, a TBR calculation, not company guidance. That would make it a large, low-growth retailer. Investors could then value the faster-growing insurer and benefits manager separately.

Raised outlook

CVS now expects 2026 adjusted earnings of at least $8.20 a share, up from a range of $7.90 to $8.10. It raised its forecast for cash flow from operations to at least $15.5 billion from at least $11.5 billion. It expects revenue of at least $420 billion.

The guidance arrives during a busy week for business news. Stock futures moved on the midterm election results (our markets coverage), and House Democrats who won the majority have promised more oversight of health costs (our story on the new House majority). For Massachusetts readers, the split matters for a health system already under strain: Mass General Brigham just announced layoffs (our report).

What happens next

CVS has not yet given a record date, a share-distribution ratio or a listing venue for CVS Pharmacy. It said those details will come with the Form 10. Until the separation, the company will keep reporting its three segments.

Sources

• CVS Health: CVS Health announces intent to create two distinct leaders in healthcare (Nov. 4, 2026)
• CVS Health via PR Newswire: CVS Health reports third quarter 2026 results and raises full-year 2026 guidance
• Axios: CVS Health to split off pharmacy business
• CNBC: CVS to split off drugstore business
• Healthcare Dive: CVS to split into two companies