CVS Weighs Spinning Off Its Roughly 9,000 Drugstores, FT Reports

CVS Health is discussing a plan to spin off its retail pharmacy business, the Financial Times reported, which would be a major step back for the largest drugstore chain in the United States. The report, relayed by the Spokesman-Review, cited unnamed people familiar with the matter.

Under the plan, the retail pharmacy division would become a separate publicly listed company, according to the FT. CVS would keep its Aetna insurance unit together with its Caremark pharmacy benefits division. The company could announce the move as soon as Wednesday alongside its quarterly earnings, the newspaper said, though the structure and timing could still change.

What the reported plan would do

The FT said the split would separate the stores that consumers walk into from the insurance and pharmacy benefits operations that remain at the core of the company. Aetna and Caremark would stay under one roof. The drugstores would be on their own, with their own stock listing.

CVS did not immediately respond to a request for comment on the report, according to the Spokesman-Review. The company has not confirmed the plan.

A company that grew from one store in Lowell

The move would close a long chapter for a business that began as a single store in Lowell, Massachusetts, and grew into a healthcare company with a market value of $117 billion. CVS has closed hundreds of stores in recent years but still runs almost 9,000 retail pharmacies. Rivals such as Walgreens and Rite Aid have struggled to compete.

The pharmacy and consumer wellness segment brought in $139 billion in revenue last year, about a third of the company's total, according to the report.

Why the retail business is under pressure

The report said retail drugstores face long-term challenges from online retailers. It also noted that CVS is the only one of its major healthcare competitors with a large pharmacy chain footprint, which sets it apart in the industry.

The company has also been dealing with problems in its insurance arm. CEO David Joyner, who took over two years ago, has been trying to turn the business around after the Aetna segment faltered badly in recent years. Bloomberg reported in 2024 that CVS was reviewing strategic options, including a breakup.

Why it matters for customers and investors

No changes to stores, prescriptions or insurance coverage have been announced, and the reports do not describe any immediate effect on customers. What is known is that a company that operates almost 9,000 pharmacies could see those stores run as an independent business, separate from its insurance and benefits operations. How the split would work, and on what schedule, has not been disclosed, and the FT said both could change.

For shareholders, the report moved the stock. CVS shares rose as much as 3.7% in after-hours trading Tuesday before paring their gains, according to the Spokesman-Review. The stock had climbed 15% this year through Tuesday's close.

What happens next

The next marker is Wednesday, when CVS is due to report quarterly results. The FT said that is when the company could announce the plan. Until CVS confirms details, the structure, timeline and scope of any spinoff remain subject to change.

Around Prague, based on reporting by The Spokesman-Review