CVS Health plans to split into two public companies by early 2028, reversing its $78 billion acquisition of insurer Aetna and dismantling the vertically integrated model it built in 2018, in what would be one of the largest corporate splits in history. About 9,000 retail pharmacies would be separated from the insurance business and pharmacy benefit manager Caremark, with the CVS Health name retained by the company run by CEO David Joyner, and existing shareholders would own shares in both companies. The move comes as Joyner's turnaround, which includes $2 billion in cost cuts, store closures and leadership changes, shows substantial progress, with shares up roughly 70% since October 2024 and market value at $117 billion. In 2025, the pharmacy business generated $37.66 billion in sales, the insurance unit $36.29 billion in revenue and healthcare services $51.24 billion. Leerink Partners analyst Michael Cherny said the split feels like a complete shock, but that the outlook for a standalone retail pharmacy may now be stronger, and that the rationale could include avoiding state scrutiny of vertical integration.
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