CVS Health (CVS) announced on November 4, 2026 its intention to separate into two independent, publicly traded companies, with completion expected in the first half of 2028. The decision followed a strategic review conducted by the board of directors. The transaction is planned to be tax-free for U.S. federal tax purposes for the company and its shareholders.
One of the companies will be the health solutions company, made up of Aetna, CVS Caremark, CVS Specialty, Oak Street Health and Signify Health. For now, it will continue to be called CVS Health. The other will be CVS Pharmacy, focused on pharmacy retail and community health, with about 9,000 pharmacies, mail-order pharmacy, MinuteClinic (including virtual care) and the Health100 technology services business.
After the separation, David Joyner, current chairman of the board and CEO of CVS Health, will hold the same positions at the health solutions company. Prem Shah, currently group president, will be CEO of CVS Pharmacy. The remaining leadership positions and board members will be announced later.
At the end of the transaction, CVS Health shareholders will hold shares of both companies. The company expects both to have a solid investment grade credit rating (solid investment grade), cash generation and the ability to pay dividends. Completion depends on customary conditions, such as final board approval, the effectiveness of the Form 10 registration filed with the SEC and confirmation of tax-free treatment.
Until completion, CVS Health will continue operating as usual and pursuing its financial targets. In a separate release, the company reported its third-quarter 2026 results and raised its full-year outlook.
