CVS Health to Split Into Two Companies by First Half of 2028

CVS Health plans to break itself into two independent companies by the first half of 2028, undoing two decades of expansion built on the 2007 Caremark acquisition and the 2018 Aetna deal. The company announced the separation in a press release, framing it as a response to mounting competitive and financial pressure on retail pharmacies.

The two resulting businesses will carry familiar names: CVS Health for the health care services side and CVS Pharmacy for the retail chain. CVS Health currently ranks No. 101 in the Digital Commerce 360 Top 1000 Database, which tracks North America's largest online retailers by annual ecommerce sales. It also sits at No. 201 in the AI Commerce Rankings from Digital Commerce 360 and ReFiBuy.

Why is CVS splitting now?

CEO David Joyner, who took the top job in 2024, said the move continues a pattern of adaptation. "Our history is defined by proactively evolving to stay ahead of what's next in healthcare, and in today's environment, that means delivering more affordability, greater access, and a simpler experience," Joyner said.

He also pointed to recent gains. "Over the last two years, we have made meaningful progress: we built a world-class leadership team, strengthened our financials, revitalized operations across the enterprise, and drove total shareholder return," he said.

That's a confident framing, but the split itself concedes the integrated model didn't deliver as promised. The company didn't quantify what "meaningful progress" means in dollars, and the release leaves open how the two entities will share technology, contracts and customers after the break. In short: the rationale is strategic; the evidence is thin so far.

Who will run each company?

Leadership is already mapped out. Joyner is expected to serve as chairman and CEO of the new CVS Health after the separation. Prem Shah, currently group president at CVS Health, will become CEO of CVS Pharmacy.

Joyner said the division of assets is straightforward. "Aetna, CVS Caremark and CVS Specialty, along with our value-based care and in-home health businesses, will advance together as a leading healthcare solutions provider, delivering differentiated, comprehensive benefits to clients, members and patients," he said.

The retail side gets its own pitch. "CVS Pharmacy will build on its position as America's leading retail pharmacy, serving as the front door to health and care in our country as the most frequently accessed consumer health touchpoint," Joyner said.

What happens between now and 2028?

Nothing yet, legally. The separation still needs final approval from the CVS Health Board of Directors, and until the deal closes, CVS Health will keep operating as one combined entity.

Joyner also pledged continuity on technology. "Both companies will continue to advance innovative technology solutions to improve the healthcare experience as we deliver on our purpose to simplify healthcare, one person, one family and one community at a time," he said.

For marketers and retail partners, the split means two separate vendor relationships where there was one — a change that could reshape how promotions, media buying and in-store programs get negotiated at a chain that calls itself America's most-visited health touchpoint.