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CVS Health plans to split into two separate public companies by the first half 2028 in what would be one of the largest corporate splits in history, the company announced Wednesday. The move would reverse the company's massive $78 billion acquisition of its insurer, Aetna, and dismantle the vertically integrated healthcare conglomerate it created in 2018. The plan would specifically separate CVS' roughly 9,000 retail pharmacies from its major insurance business and pharmacy benefit manager, Caremark, one of the nation's three largest PBMs. The decision follows a "comprehensive strategic review" by the company's board of directors, according to a news release. Shares of CVS fell roughly 11% on Wednesday. It's a stunning reversal for the healthcare powerhouse, which has spent the last two decades working to turn itself into a one-stop health destination. The move also comes as CVS' aggressive turnaround plan under CEO David Joyner shows substantial progress, with the company pursuing $2 billion in cost cuts, store closures, leadership shakeups and efforts to rein in Medicare Advantage costs. But Joyner told CNBC's "Squawk on the Street" on Wednesday that the decision to split is "out of a position of strength," pointing to recovery in Aetna's Medicare business and solid performance in the retail pharmacy. "So it's all about the strength of the business that affords us the opportunity to make what we think are the right strategic decisions for the future of this company," he later added.

A person walks into a CVS pharmacy near George Washington University in Washington, U.S., August 15, 2024. Kaylee Greenlee Beal | Reuters

CVS shares have jumped roughly 70% since Joyner took the helm in October 2024, bringing the company's market value to $117 billion. The two new companies would both be publicly traded. The insurance and PBM company will retain the CVS Health name and be run by Joyner, while the other company will be called CVS Pharmacy and be led by Prem Shah, who is currently group president of CVS Health. Additional leadership positions and board members will be announced at a later date, CVS said. Existing CVS shareholders will own shares in both companies after the split. The Financial Times on Tuesday first reported the breakup plans. The company's pharmacy business raked in $37.66 billion in 2025 sales, while its insurance unit booked $36.29 billion in revenue and healthcare services segment generated $51.24 billion. CVS on Wednesday also posted third-quarter earnings and revenue that topped Wall Street expectations. Total sales climbed to $108.40 billion, from $102.87 billion in the prior-year period. Sales were boosted by year-over-year growth in the company's health care benefits and health services segments. Meanwhile, revenue in its pharmacy services business slid from the previous year.

How the CVS split would work