CVS Health announced plans on Wednesday to split its $117 billion healthcare empire into two standalone, publicly traded businesses, separating its retail store footprint from its insurance and pharmacy-benefit operations in a major reversal of two decades of industry consolidation.
CVS Reverses Decades of Conglomerate Growth
The planned separation brings CVS back to operating as a standalone pharmacy chain for the first time since 2007. That was the year it merged with Caremark, which handles prescription benefits available to people with health insurance. That transaction launched a sprawling strategy of acquisitions, including the landmark $69 billion purchase of health insurer Aetna in 2018.
An interim title of CVS Health will be temporarily given to the second division. This unit groups together Aetna, Caremark, and a pair of elderly care enterprises bought by CVS focused on primary care and in-home evaluations.
We’re basically taking what I believe is one great company and making it two,
David Joyner, CVS CEO
In 2025, CVS achieved a peak revenue figure of $402.1 billion, representing a 7.8% bump compared to the year prior. The firm posted a third-quarter profit amounting to $2.09 per share, easily surpassing the consensus analyst expectation of $1.65 per share based on LSEG metrics.
CVS Health CEO David Joyner stated during an earnings call that in the past two years its chain of 9,000 pharmacies, Caremark pharmacy, MinuteClinics, mail-order pharmacies, and the consumer platform called Health100 help patients manage care using data across insurers, providers and pharmacies. Joyner additionally pointed out that when he stepped into the role two years ago, the enterprise had previously anticipated a 5% drop in pharmacy operations. The businesses are running really well,
Joyner said in an interview. CVS Health projected 2027 adjusted earnings of at least $8.65 per share, coming in above analysts' expectations of $8.53 per share.
Analysts View Corporate Division as Defensive Maneuver Against Regulation
According to UBS analyst Kevin Caliendo, the planned corporate division caught observers off guard and is viewed as a defensive maneuver against regulatory pressures rather than an offensive strategy. Meanwhile, CVS’ retail business has been hampered by consumers shifting to online channels, where the company still lags leaders like Amazon, as Michael Cherny, an analyst with Leerink Partners, wrote in a client note on Tuesday evening after reports of the split surfaced.
Suppliers Face Financial Outlook Changes
For now, Novo Nordisk CEO Mike Doustdar said it’s business as usual for its weight-loss drug behemoth as healthcare giant CVS Health undergoes a complicated breakup. Doustdar noted that he does not see a material impact for them other than now having to speak with two different negotiations and two different groups of people about their products and making sure they find a place in their formulary, but being a popular product company makes it a lot easier than otherwise.
The company split will have little impact on the way people shop at CVS, as the company didn’t announce any closures as part of the news, nor will it affect what patients pay for prescriptions. Pharmacy benefit management firms operate behind the scenes, directly engaging with drug manufacturers regarding prescription medication pricing.
CVS’s drugstores and Caremark insurance operate separately, and splitting into two companies won’t change how they function. Based on statements made by company officials during an earnings call, CVS maintains 9,000 sites across America, features 800 MinuteClinics staffed by nurse practitioners alongside physician assistants, and employs 30,000 pharmacists together with 200,000 retail store workers.
When you’re selling products like ours that are in need of many patients, then almost everyone would like to work with you.
Mike Doustdar, Novo Nordisk CEO
