CVS Health will split into two companies, dividing its retail pharmacies from its insurance and pharmacy-benefit operations, the Wall Street Journal reported Tuesday.
One of the two companies will retain the CVS Health name and be led by current CEO David Joyner, the Journal reported, citing the company.
CVS Health, which is set to report quarterly results on Wednesday, did not immediately respond to a Reuters request for comment.
A separation would mark a significant reversal of CVS’ strategy of building an integrated healthcare business through acquisitions, including its roughly $78 billion purchase of health insurer Aetna in 2018.
Shares of the company were up 1.2% in extended trading.
The Financial Times earlier reported that CVS was considering spinning off its retail pharmacy business, which operates about 9,000 pharmacies, into a separately listed company, while Aetna and its pharmacy-benefit manager, Caremark, would remain together.
The potential shakeup comes as pharmacy benefit managers face growing political and regulatory scrutiny over their role in the US drug supply chain, spotlighting healthcare companies that combine insurance, drug-benefit management and pharmacy operations.
The company reported record revenue of $402.1 billion in 2025, up 7.8% from the prior year.
CVS had explored options including a potential breakup in 2024, Reuters reported at the time, as the healthcare giant grappled with challenges across its businesses.
Shares of CVS have rebounded under Joyner, who took over in October 2024, helping lift the company’s market value to about $117 billion.