Under the planned separation, CVS Health will untangle its retail pharmacy operations from its insurance and pharmacy-benefit management (PBM) segments. The company expects to complete the division in the first half of 2028. One of the resulting entities will retain the CVS Health name and continue under the leadership of current CEO David Joyner.
The strategic reversal follows mounting regulatory and legislative scrutiny facing vertically integrated healthcare giants. Critics and lawmakers have raised concerns that conglomerates controlling multiple stages of the healthcare supply chain can generate conflicts of interest, limit marketplace competition, and drive up healthcare costs. CVS constructed its multi-layered business through significant deals, including its roughly $78 billion purchase of insurer Aetna in 2018.
Beyond regulatory pressures, the units have faced distinct operational headwinds. Traditional retail pharmacies have struggled with shifting consumer habits, increased prescription delivery, and competition from online platforms like Amazon, which have reduced in-store traffic. Meanwhile, major health insurers have contended with elevated medical costs as utilization rates climbed.
The business segments operate at a massive scale. In 2025, CVS's Pharmacy & Consumer Wellness division, encompassing roughly 9,000 retail locations, generated $139.4 billion in revenue. The healthcare benefits segment brought in $143.4 billion, while the Caremark pharmacy-benefit unit contributed $190.4 billion.
Alongside the breakup announcement, CVS reported its third-quarter financial results, posting a profit of $2.09 per share that topped analyst estimates compiled by LSEG.
