Cvs Health Corporation (CVS)

CVS Health said on November 4, 2026 that it intends to separate into two independent, publicly traded companies 2. One would hold Aetna, CVS Caremark, CVS Specialty, Oak Street Health and Signify Health, and the other about 9,000 CVS pharmacies, mail pharmacy, MinuteClinic and the Health100 technology business 2.

The company expects the separation to be completed in the first half of 2028, by a split intended to be tax-free to the company and its shareholders 2. It names final board approval, an effective Form 10 registration statement and tax confirmation among the conditions 2.

The same day it reported third-quarter 2026 revenue of $108.4 billion, up 5.4 percent from a year earlier 1. Adjusted earnings per share were $2.09 against $1.60 a year before, and the company raised its full-year adjusted outlook to at least $8.20 1.

The company credited the gain mainly to its insurance arm, where the medical benefit ratio, a measure of care costs against premiums, fell to 91.3 percent from 92.8 percent 1. Net income was $2.2 billion, against a $4.0 billion loss a year earlier that carried a $5.7 billion goodwill write-down 1.

The company says it keeps a cautious view for the rest of the year because of elevated cost trends and possible macro headwinds 1. It also called the sale of Omnicare's assets probable for the fourth quarter of 2026 3.

On November 28, 2018 CVS Health acquired the insurer Aetna for cash and CVS Health stock, a deal that valued Aetna at approximately $70 billion 8. Aetna shareholders received $145.00 in cash and 0.8378 CVS Health shares for each Aetna share 8. The purchase added an insurer to a company that already ran drugstores and a pharmacy benefit manager, which negotiates drug prices for employers and health plans 4.

The growth that followed shows in the filed totals: revenue was $357.8 billion in 2023, $372.8 billion in 2024 and $402.1 billion in 2025 4. In 2024 premiums rose 23.9 percent as insurance grew, while product sales fell 5.6 percent 4.

In 2023 the company developed a company-wide restructuring plan after it completed the purchases of Signify Health and Oak Street Health 4. It recorded $507 million in restructuring charges that year 4.

The next year was harder, and in the third quarter of 2024 the company reviewed its retail business and announced plans to close certain stores in 2025 4. Restructuring charges reached $1.2 billion, and operating income fell from $13.7 billion in 2023 to $8.5 billion 4.

Reuters reported in the autumn of that year, citing people familiar with the matter, that the company was exploring options that could include a break-up to separate its retail and insurance units 7. Reuters said such a move would effectively unwind the $70 billion Aetna takeover of 2017 7. David Joyner became chief executive in October 2024 and chair in January 2026 4.

The 2025 annual report ties the 45.3 percent fall in operating income, to $4.7 billion, mainly to a $5.7 billion goodwill impairment on the Health Care Delivery unit and $1.2 billion of legacy litigation charges 4. Net income fell to $1.7 billion 4.

Revenue still rose 7.8 percent in 2025, driven by growth across all operating segments 4. In May 2025 the company agreed to buy the prescription files of certain Rite Aid pharmacies, and some stores in Idaho, Oregon and Washington, for $465 million 4.

On September 22, 2025 Omnicare, its long-term care pharmacy subsidiary, began Chapter 11 bankruptcy proceedings, and the company stopped consolidating it and booked a $483 million gain 3. The company has since agreed terms with the Justice Department over an Omnicare lawsuit 3.

In the nine months ended September 30, 2026, operating income was $12.9 billion against $2.5 billion a year earlier, and net income was $8.1 billion 1.

Health Care Benefits, Aetna

Aetna sells medical, pharmacy, dental and behavioral health insurance to employers, individuals and governments 4. Its Medicare Advantage plans, run under contracts with the federal Medicare agency, were offered in 44 states and Washington, DC in 2025 4.

The segment had revenue of $143.4 billion in 2025, up 9.7 percent, and adjusted operating income of $2.9 billion against $307 million the year before 4. Medical membership as of September 30, 2026 was 26.1 million, down from 26.7 million a year earlier 1.

The company left the individual exchange business in 2026 1. More than 69 percent of its Medicare Advantage members are in 2027 plans rated 4 stars or higher out of 5, which the company says puts Aetna second among large public Medicare Advantage insurers 1.

Health Services, CVS Caremark and care delivery

CVS Caremark is the pharmacy benefit manager 4. It designs drug plans for employers and insurers, manages formularies and runs specialty and mail order pharmacies 4. The segment also holds Oak Street Health, which runs primary care centers for older adults, and Signify Health, which sends clinicians to homes for health evaluations 4.

Health Services revenue was $190.4 billion in 2025, and in the third quarter of 2026 it was $54.0 billion, up 9.5 percent, on 481.7 million pharmacy claims 14. The company leases 246 primary care centers across 27 states, and Signify performed more than 3.5 million in-home evaluations in 2025 4.

Rivals in pharmacy benefits include Prime Therapeutics, MedImpact, Cigna's Express Scripts and UnitedHealth Group's Optum Rx 4. Through its Cordavis subsidiary the company works with drug makers to co-produce biosimilars, which are lower-cost copies of biologic drugs 4.

Pharmacy and Consumer Wellness

This segment runs the CVS Pharmacy stores, where prescriptions are filled and health and beauty goods are sold, plus infusion services and pharmacy vaccinations 4. It operated approximately 9,000 retail locations at the end of 2025 and closed 221 stores that year under a restructuring plan 4.

Segment revenue was $139.4 billion in 2025, up 11.9 percent, helped by the Rite Aid prescription files 4. In the third quarter of 2026 revenue was $35.5 billion, down 2.0 percent, while prescriptions filled rose 1.9 percent to 470.0 million on a quarterly count 1.

The company says it offers all FDA-approved GLP-1 weight-management drugs, with a MinuteClinic digital visit and same-day pickup at 9,000 local pharmacies, and no membership fee 1. It names Walgreens, Walmart and Amazon among retail pharmacy rivals 4.

People and places

The company employed over 300,000 colleagues at the end of 2025, about 73 percent of them full-time 4. Its principal office is an owned complex of about one million square feet in Woonsocket, Rhode Island 4.

David Joyner is chair and chief executive, and Prem Shah is a group president 2. Teresa Heitsenrether, an officer of JPMorgan Chase, joins the board on November 18, 2026, and Larry Robbins of Glenview left it on August 13, 2026 6.

Problems and legal matters

The company's remaining accrual for opioid litigation was about $3.4 billion on September 30, 2026 3. In October 2026 it settled a Justice Department claim over opioid prescriptions filled at its pharmacies for $315 million, which had been accrued 3.

A separate Omnicare agreement says the Justice Department will receive at least $440 million from Omnicare and the company 3. The company recorded a $193 million guarantee liability for it in the third quarter 3.

The umbrella, in words

The main brands are CVS Pharmacy for stores, CVS Caremark for pharmacy benefits, Aetna for insurance, MinuteClinic for walk-in care, Oak Street Health for primary care and Signify Health for home evaluations 24. Cordavis handles biosimilars and Health100 is a technology subsidiary 41.

Exhibit 21.1 to the 10-K lists the subsidiaries at December 31, 2025, among them CVS Pharmacy, Inc. of Rhode Island and Aetna Inc. of Pennsylvania, with Aetna's many state health plans beneath it 5. The list leaves out subsidiaries that are not insurers and would not be significant 5.

After Omnicare's bankruptcy the company's retained equity in the Omnicare entities had a carrying value and fair value of $0 3. The company owns about 4 percent of its more than 7,000 retail stores and leases the rest 4.

The company intends to separate into two public companies in the first half of 2028, subject to final board approval, an effective Form 10 registration statement and tax confirmation 2. It says both are expected to have a solid investment grade rating 2.

Joyner is to lead the healthcare solutions company and Shah the pharmacy company, which is to be named CVS Pharmacy 2. The company said further leaders and board members will be announced at a later date 2. Goldman Sachs is lead financial advisor 2.

For 2026 the company now guides to at least $6.98 of GAAP diluted earnings per share, from a range of $6.84 to $7.04, and at least $8.20 adjusted, from $7.90 to $8.10 1. It guides to cash flow from operations of at least $15.5 billion, from at least $11.5 billion 1.

It projects 2026 total revenues of at least $420.0 billion 1. It describes its view as cautious given elevated cost trends and possible macro headwinds 1.

The Omnicare asset sale is called probable for the fourth quarter of 2026 3. If the Justice Department does not receive at least $310 million from Omnicare by March 15, 2028, the company will guarantee collection of the remainder by March 31, 2028 3.

Heitsenrether's board seat starts on November 18, 2026 6. CMS released the 2027 star ratings in October 2026, and the company said they, with more than 69 percent of members in plans at 4 stars or higher, set bonus payments in 2028 3. It reported the 2026 figure at more than 81 percent 3.

The company said both companies are expected to have strong free cash flow, flexibility for strategic capital deployment and an attractive dividend 2. Until the separation is complete it says it will operate, compete and serve customers as it does today 2.

The 10-K says utilization, meaning how much care members use, is expected to persist at elevated levels in 2026 and could pressure the insurance arm and the care delivery assets 4. The company said it will provide additional information as the separation process progresses 2.

The pharmacy company is to keep serving customers with nearly 30,000 pharmacists, and the company says patients will continue to receive their medicine, care, benefits and services uninterrupted 2.

Past

CVS's revenue grew from $178 billion in fiscal 2016 to $402 billion in fiscal 2025, rising 9.5% a year, and climbed in 9 of 9 years with no fall from a peak. Net income stayed positive in 9 of 10 of those years. Over the three fiscal years to 2025, the diluted share count shrank about 1.3% a year, and dividends and buybacks returned about 45% of operating cash flow. CVS's filings since 2017 show one warning event: a debt default or acceleration notice dated 2023-05-02. The grade's past tense reads 5.5 of 10. 12

Present

In fiscal 2025 ended 2025-12-31, CVS reported revenue of $402 billion and profit of $1.7 billion. CVS earned about 2 cents of profit for every dollar of shareholders' money and its products earned about 71 cents per dollar of everything the company owns. It owed about 70 cents per dollar of assets, and its share count grew 0.7% over the year. By revenue of $402 billion in fiscal 2025, CVS ranks in the top 3% by size among 18 graded names in its industry family. The chief executive is Joyner, J. David, filing under that title since 2024-11-15; the 22 officers and directors filing in the last fifteen months have been on the record a median of 3.4 years. The grade's present tense reads 5.9 of 10. 21

Future

A quarterly report (Form 10-Q) for the quarter ending 2026-09-30 is due by 2026-11-09. An annual report (Form 10-K) for the fiscal year ending 2026-12-31 is due by 2027-03-01. CVS's cash of $8.5 billion against debt of $61 billion leaves minus 20.5% of its assets as net cash, in the bottom 3% of its family. Revenue grew 7.6% a year over the last three filed years against 9.5% over all 10 filed years, slowing. The company's net income of $1.7 billion in fiscal 2025 fell against a prior three-year average of $5.8 billion. The grade's future tense reads 5.2 of 10. 312

How the company operates

CVS reported three lines of business in fiscal 2025: Health Services at $190 billion, Health Care Benefits at $143 billion, and Pharmacy and Consumer Health at $139 billion. All three lines grew in the latest filed year, with the largest line representing 40% of revenue. 1

New moves

On 2026-08-17, CVS filed Form 8-K reporting an officer or director change and investor disclosure under Regulation FD for the period ended 2026-08-13. On 2026-08-13, a large holder filed an updated stake notice (Schedule 13G/A). On 2026-08-05, CVS filed its quarterly report (Form 10-Q) for the period ended 2026-06-30, showing the quarterly money story and balance sheet trends. On 2026-05-18, CVS reported officer or director changes and shareholder vote results on Form 8-K. 3