CVS Health Will Split in Two by 2028, Unwinding Its $78B Aetna Bet

CVS Health is calling time on its own megamerger. The company will split into two publicly traded businesses by the first half of 2028, undoing the $78 billion Aetna deal that turned it into a healthcare conglomerate back in 2018. One half keeps the CVS Health name and the insurance business. The other takes the stores.

The company staying under the CVS Health banner will be led by CEO David Joyner, and it keeps the heavy machinery: Aetna, the Caremark pharmacy benefit manager, Oak Street Health, Signify Health and the specialty drug unit. The spinoff, dubbed CVS Pharmacy, will run about 9,000 retail locations under group president Prem Shah. Existing shareholders don't get cashed out — they'll receive stock in both companies.

Investors didn't wait around to celebrate. Shares slid more than 12% on Wednesday as the plan hit the tape. Joyner pushed back on the gloom, saying the split comes from a position of strength rather than distress, according to Coinpedia.

There is a solid number in the pile, too. Third-quarter sales climbed to $108.40 billion, clearing what analysts had penciled in. That beat gives management some cover to argue the retail and insurance sides are both healthy enough to stand alone.

Leerink Partners' Michael Cherny read the plan as a sign of how far the pharmacy business has come, telling Coinpedia it reflects how much that side of the house has stabilised. The retail operation has spent years fighting pressure on drug reimbursements and foot traffic.

Now comes the long grind. Splitting a company this size takes years of filings, leadership decisions and shareholder approvals before both tickers go live in 2028. Until then, the market gets plenty of time to keep voting on whether two CVS companies beat one.