UnitedHealth (UNH) news that moved the stock

What happened

CVS Health confirmed plans to separate into two independently listed companies in the first half of 2028: one entity retaining the CVS Health name under CEO David Joyner would house Aetna, Caremark, Oak Street Health, Signify Health and specialty pharmacy; the other, CVS Pharmacy, would hold the roughly 9,000-store retail network, mail-order pharmacy and MinuteClinic. The Financial Times first reported the plan on Tuesday; CVS confirmed it alongside third-quarter results. Despite the Q3 beat, shares sank roughly 12% on Wednesday as investors priced in execution risk over the long, uncertain separation runway.

What happened

UnitedHealth Group reported third-quarter 2026 adjusted earnings of $4.69 per share, well above the roughly $4.14 consensus, and up from $2.92 a year earlier. Net income surged to $4.11 billion ($4.56/share) from $2.35 billion ($2.59/share) a year ago. Revenue of $112.69 billion edged past the ~$111.4 billion consensus but slipped slightly from $113.16 billion a year earlier. The key driver was cost control: the medical cost ratio improved to 88.4% versus ~89.7-89.9% expected and 89.9% a year ago, as plan design, pricing, and exits from unprofitable products took hold. UnitedHealth raised full-year 2026 adjusted EPS guidance to at least $20.50, up from $19.50-$20.00 and above the ~$19.80-$19.86 consensus. Shares rose 3-5% in premarket trading.

What happened

The Centers for Medicare & Medicaid Services raised the Star Rating of one of Humana's key Medicare Advantage contracts to 4 stars from 3.5 stars, making the plan — which covers 2.4 million members — eligible for federal bonus payments. Humana stock surged about 14-15% in premarket trading Friday, to around $445, gapping out of a cup-with-handle base. Leerink Partners called Humana 'the clearest positive big winner' in its 2027 Stars analysis, estimating ~96% of Humana members will be in 4+ star plans for 2027, up from 42% this year. Oppenheimer's Michael Wiederhorn estimated the improved scores could add $3.6 billion in revenue for Humana.