Updated version 3 - According to The Wall Street Journal, CVS Health will split into two companies.

Added chart, and the entire article was rewritten according to The Wall Street Journal report

Reuters, November 3 - According to a report by The Wall Street Journal on Tuesday, CVS Health (CVS.N) will split into two companies, separating its retail pharmacy business from its insurance and pharmacy benefits businesses.

The Wall Street Journal, citing company sources, reported that one of the companies will retain the CVS Health name and will be led by the current CEO, David Joyner.

CVS Health is scheduled to release its quarterly earnings on Wednesday, but has not yet responded to a request for comment from Reuters.

This split will mark a major strategic reversal for CVS, as the company previously focused on building an integrated healthcare business through acquisitions, including the approximately $78 billion acquisition of health insurer Aetna in 2018.

The stock rose 1.2% in after-hours trading.

The Financial Times previously reported that CVS is considering spinning off its retail pharmacy business, which operates about 9,000 stores, into an independently listed company, while Aetna and its pharmacy benefits management company Caremark will continue to operate jointly.

This potential restructuring comes as pharmacy benefit management companies face increasing political and regulatory scrutiny for their role in the U.S. pharmaceutical supply chain, drawing significant attention to healthcare companies that combine insurance, pharmacy benefits management, and pharmacy operations.

The company reported record revenue of $402.1 billion in 2025, a 7.8% increase over the previous year.

https://www.reuters.com/graphics/CVSHEALTH-SPINOFF/CVSHEALTH-SPINOFF/zgpodxqgzvd/chart.png

Reuters previously reported that as this healthcare giant faces challenges across its business lines, CVS explored various options in 2024, including a potential split.

Under the leadership of Joyner, who took over in October 2024, CVS shares have rebounded, pushing the company's market value to around $117 billion.

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