BUZZ-CVS Health plans to split into two companies, shares fall

Latest Developments

November 4 - ** Health insurance company CVS Health (CVS.N) shares fell 11.9%, closing at $80.58

** The company plans to split (link) into two independent public companies, with completion expected in the first half of 2028

** CVS Health CEO David Joyner will lead the insurance and health services company, while group president Prem Shah will be appointed CEO of CVS Pharmacy; shareholders will hold shares in both companies

** Leerink Partners noted that factors related to the transaction as well as increased overall market volatility following the US midterm elections could be potential reasons for the share price decline

** In addition, CVS reported third quarter adjusted earnings per share of $2.09, higher than analysts’ expectation of $1.65—data compiled by LSEG

** Raised 2026 adjusted earnings per share forecast from $7.90–8.10 to at least $8.20

** “Despite strong operating performance, we expect today’s stock price to be driven more by last night’s election results and the potential short-term impact of the spin-off on shareholder value,” said UBS analyst Kevin Caliendo

** Including today’s gains, CVS has risen a total of 1.5% so far this year

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