CVS Health Confirms Split Into Two Public Companies as Q3 Earnings Season Delivers Mixed Results

CVS Health delivered the most consequential announcement of the November 4 earnings wave, confirming it will separate its roughly 9,000 retail pharmacies into a standalone public company while keeping its Aetna insurance and Caremark pharmacy benefits businesses together. The split, expected to close in the first half of 2028, would unwind the $78 billion Aetna acquisition that created the vertically integrated conglomerate in 2018. CVS also reported a strong third quarter, with adjusted EPS of $2.09 beating estimates by $0.44, revenue of $108.4 billion topping forecasts by $3.71 billion, and full-year adjusted EPS guidance raised to at least $8.20 from a prior range of $7.90 to $8.10. Despite the earnings beat, shares slipped as investors absorbed the restructuring news.

Uber posted its fifth consecutive quarter of 20%-plus gross bookings growth, with Q3 gross bookings of $59.82 billion rising 20% year over year and revenue reaching $14.8 billion. Adjusted EPS of $0.88 beat estimates by a penny, and the company guided Q4 gross bookings to $63.25 billion to $65.25 billion. Uber said it expects approximately 700 fully driverless vehicles on its platform by year-end, rising to more than 2,000 in 2027.

Stanley Black and Decker was among the sharpest earnings surprises of the morning, with adjusted EPS of $2.31 beating the $1.56 estimate by $0.75 as gross margin expanded 760 basis points year over year to 39.0%. The company raised full-year adjusted EPS guidance to $5.95 to $6.25 from $5.20 to $5.80 and lifted free cash flow guidance to $1.0 billion to $1.2 billion. Tariff refunds contributed approximately $0.67 to EPS in the quarter.

Datadog reported Q3 revenue of $1.20 billion, up 35% year over year and ahead of estimates, with adjusted EPS of $0.81 beating by $0.16. The company raised its full-year revenue outlook to $4.52 billion to $4.53 billion and lifted adjusted EPS guidance to $2.73 to $2.75. Shares fell, however, after the Q4 revenue guide of $1.19 billion to $1.20 billion came in line rather than meaningfully above expectations.

McDonald's reported global comparable sales growth of 1.5% for Q3, with US comparable sales declining 0.2%, slightly better than the minus 0.5% consensus. Adjusted EPS of $3.57 beat estimates by $0.19, but revenue of $7.16 billion fell short of the $7.29 billion forecast. Loyalty program sales reached $41 billion on a trailing twelve-month basis, with more than $11 billion generated in Q3 across 70 markets.

Cencora reported fiscal fourth-quarter revenue of $88.4 billion, up 5.5%, with adjusted EPS of $4.66 beating estimates by $0.08. The drug distributor issued fiscal 2027 adjusted EPS guidance of $19.40 to $19.75 and said it would reorganize into two reporting segments. It also announced a definitive agreement to acquire a physician-led network and plans to sell its Profarma stake in Q1 fiscal 2027, while raising its quarterly dividend 10% to $0.66 per share.

Array Technologies and Shoals Technologies announced an all-stock merger in which Shoals shareholders would receive 1.6931 Array shares per share and own approximately 65% of the combined company. The combined entity projects 2027 revenue of $2.2 billion to $2.4 billion, adjusted EBITDA of $410 million to $480 million, and annual EBITDA synergies exceeding $100 million within three years. Shoals CEO Brandon Moss would lead the merged company, with closing expected in Q1 2027.

Among other notable results, SharkNinja posted Q3 revenue of $1.98 billion, up 21.2%, with adjusted EPS of $2.34 beating by $0.47, and raised full-year net sales growth guidance to 18% to 19%. Circle Internet reported Q3 revenue and reserve income of $865 million, up 17%, with adjusted EBITDA of $317 million nearly 85% above a year ago, boosted by $182 million from an ARC token presale. Flutter Entertainment missed on revenue and EBITDA, took an $873 million non-cash impairment charge on Brazil, and paused share repurchases. Kraft Heinz beat estimates with adjusted EPS of $0.53 against a $0.42 consensus and announced the divestiture of its North American coffee business while retaining a 30% stake.