CVS to break up $117 billion business, separating pharmacies from insurance; shares fall
CVS•CVS Health plans to separate its pharmacy business from Aetna, Caremark and other healthcare operations in the first half of 2028, with shareholders set to own shares in both companies. It forecast 2027 adjusted EPS of at least $8.65, while its shares fell 13%.
1. Breakup planned for 2028
CVS Health said it plans to separate its retail pharmacies from its Aetna insurance business and pharmacy-benefit operations in the first half of 2028. Shareholders will own shares in both companies after the separation.
2. Forecast and market reaction
The company forecast 2027 adjusted earnings of at least $8.65 per share, above analysts’ average estimate of $8.53. CVS shares fell 13% in afternoon trading. CVS also reported third-quarter profit of $2.09 per share, topping the $1.65 average analyst estimate, and raised its 2026 adjusted profit forecast to at least $8.20 per share.
3. Businesses after separation
CVS Health, led by CEO David Joyner, will include Aetna, Caremark, its specialty pharmacies and healthcare services companies Oak Street Health and Signify Health. Prem Shah will lead CVS Pharmacy, which will include its MinuteClinics, mail-order pharmacies and Health100 consumer platform.
