Raised Outlooks and a Cancer Approval Arrive in the Middle of Medicare Open Enrollment

Vertex's quarterly GAAP net income fell to $654 million from $1.1 billion, primarily due to acquisition expenses, the company said.

Rhea-AI Summary

Edwards Lifesciences (EW) raised its full-year sales growth outlook to approximately 11.5% after reporting growth across its medical-device businesses. Third-quarter sales rose 10.5% to $1.72 billion; the outlook is on a constant currency basis. Adjusted earnings guidance increased to $2.97–$3.05 per share.

Vertex (VRTX) raised 2026 revenue guidance to $13.15–$13.25 billion, while Humana (HUM) raised adjusted earnings guidance to at least $9.50 per share despite an expected year-over-year decline. McKesson (MCK) raised fiscal 2027 adjusted earnings guidance to $45.60–$46.40 per diluted share. Johnson & Johnson (JNJ) received accelerated FDA approval for RYBREVANT FASPRO in previously treated head and neck cancer, excluding HPV-associated oropharyngeal cancer. Continued approval may depend on confirmation of clinical benefit in the ongoing Phase 3 OrigAMI-5 trial.

21 points · 2 major

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It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.

Rhea-AI Sentiment measures something else, the tone of the wording.

How the balance worksHow Sentiment works

0 major · 7 points

Hollow bars mark forward-looking points. How the balance works

Positive

• Major point. Forward-looking: it has not happened yet and may not happen.Edwards sales growth guidance increased to approximately 11.5% on a constant currency basis, from 10%–11%.
• Major point. Forward-looking: it has not happened yet and may not happen.McKesson fiscal 2027 adjusted earnings guidance increased to $45.60–$46.40 per diluted share from $44.20–$45.00.
• Moderate pointEdwards third-quarter sales grew 10.5% to $1.72 billion; constant currency growth was 11.2%.
• Moderate pointJohnson & Johnson's RYBREVANT FASPRO received accelerated FDA approval for previously treated recurrent or metastatic head and neck squamous cell carcinoma.
• Moderate pointVertex third-quarter revenue increased 12% year over year to $3.44 billion.
• Moderate point. Forward-looking: it has not happened yet and may not happen.Vertex 2026 revenue guidance increased to $13.15–$13.25 billion from $13.1–$13.2 billion.
• Moderate pointVertex's Crinetics Pharmaceuticals acquisition closed on Sept. 1.
• Moderate pointHumana third-quarter GAAP revenues increased to $41,155 million from $32,649 million a year earlier.
• Moderate pointCenterWell Senior Primary Care patients grew by 146,800, or 30 percent, year to date.
• Moderate pointMcKesson fiscal 2027 second-quarter revenues increased 8% to $111.0 billion.
• Moderate pointMcKesson adjusted earnings per diluted share increased 18% to $11.68 in fiscal 2027's second quarter.
• Moderate pointMcKesson's Precision Medicine Group acquisition was completed on Nov. 2.

9 minor points

• Minor point. Forward-looking: it has not happened yet and may not happen.Edwards adjusted EPS guidance increased to $2.97–$3.05 from $2.95–$3.05.
• Minor pointEdwards TAVR sales, for transcatheter aortic valve replacement, grew 8.0% to $1.24 billion.
• Minor pointEdwards adjusted transcatheter mitral and tricuspid therapy sales grew 44.0% to $207 million.
• Minor pointEdwards PASCAL Precision system received FDA approval for tricuspid regurgitation in October.
• Minor pointUpdated CMS TAVR coverage policy represents a step toward expanded access, Edwards said.
• Minor pointRYBREVANT FASPRO confirmed overall response rate was 42 percent in Phase 1b/2 OrigAMI-4, per blinded independent central review.
• Minor pointHumana Insurance benefit ratio was 93.7 percent, favorable to management's guidance of slightly above 94 percent.
• Minor pointHumana Medicaid membership grew by 103,600, or 7 percent, year to date.
• Minor pointMcKesson earnings per diluted share increased $1.52 to $10.44 in fiscal 2027's second quarter.

Negative

• Moderate pointVertex third-quarter GAAP net income fell to $654 million from $1.1 billion, primarily reflecting acquisition expenses, the company said.
• Moderate point. Forward-looking: it has not happened yet and may not happen.Humana 2026 adjusted EPS guidance rose to at least $9.50 from at least $9.00, but still anticipates a year-over-year decline.
• Moderate pointHumana third-quarter adjusted loss was $0.70 per share, alongside GAAP earnings of $1.33 per share.
• Minor pointRYBREVANT FASPRO's approved indication excludes patients with HPV-associated oropharyngeal squamous cell carcinoma.
• Minor point. Forward-looking: it has not happened yet and may not happen.Continued RYBREVANT FASPRO approval may depend on verification and description of clinical benefit in Phase 3 OrigAMI-5.

2 minor points

• Minor pointVertex's povetacicept accelerated-approval application remains under FDA priority review, with a Nov. 30, 2026 target action date.
• Minor pointLower branded pharmaceutical contributions partially offset McKesson's revenue growth.

News Explained

Vertex said Crinetics acquisition expenses primarily drove its lower reported third-quarter net income.

The release adds that McKesson completed its acquisition of Precision Medicine Group on November 2, 2026; the acquisition is closed, not pending.

Vertex reported third-quarter GAAP net income of $654 million, versus $1.1 billion a year earlier, and said the decline was primarily due to expenses related to its Crinetics acquisition, which closed on September 1, 2026.

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NEW YORK, Nov. 9, 2026 /PRNewswire/ -- Market Updates News Commentary - Health care stocks moved higher with the broader market on Monday morning. As of 9:58 a.m. ET, the State Street Health Care Select Sector SPDR ETF was up 0.88% at $186.42, while the S&P 500 was up 1.70% at 7,501.96. Medicare Open Enrollment is underway, and over the past week companies in pharmaceuticals, biotechnology, health insurance, medical devices and drug distribution have reported quarterly results or regulatory news. Active Companies from around the markets with current developments this week include: Johnson & Johnson (NYSE: JNJ), Vertex Pharmaceuticals Incorporated (Nasdaq: VRTX), Humana Inc. (NYSE: HUM), Edwards Lifesciences Corporation (NYSE: EW), McKesson Corporation (NYSE: MCK).

The Centers for Medicare & Medicaid Services (CMS) released its 2027 projections ahead of Open Enrollment, which runs from Oct. 15, 2026, through Dec. 7, 2026. CMS said the weighted average monthly premium across all Medicare Advantage plans is projected to decrease from $14.37 in 2026 to $12.00 in 2027, a decline of 16.5%, and that the total average monthly Part D premium for stand-alone prescription drug plans is projected to increase less than $1, from $35.09 in 2026 to $36 in 2027.

The sector ETF closed at $184.80 on Friday, after reaching a 52-week high of $192.32 on Nov. 5. Over the past week, four of the five companies below raised full-year guidance, and one announced that the U.S. Food and Drug Administration (FDA) granted accelerated approval for a cancer therapy in a new indication.

Stock Preachers, a sister site built around technical analysis, publishes Knowledge is Power, a free 27-page guide that covers reading the news and reading the chart in plain English, at market-updates.com.

Johnson & Johnson (NYSE: JNJ)

Johnson & Johnson announced on Nov. 5 that the FDA granted accelerated approval for RYBREVANT FASPRO (amivantamab and hyaluronidase-lpuj) as a single agent for the treatment of adults with recurrent or metastatic head and neck squamous cell carcinoma (HNSCC) whose disease has progressed on or after platinum-based chemotherapy and an anti-PD-(L)1 antibody. The indication does not include patients with oropharyngeal squamous cell carcinoma (OPSCC) that is HPV-associated. The company said it is the first approval of a dual-targeted therapy in this setting.

The approval was based on the Phase 1b/2 OrigAMI-4 trial, in which the confirmed overall response rate was 42 percent per blinded independent central review. Continued approval may be contingent upon verification and description of clinical benefit in the ongoing confirmatory trial in first-line HNSCC, the Phase 3 OrigAMI-5 study.

"RYBREVANT FASPRO delivers a differentiated approach, targeting both EGFR and MET to address the biology that drives this disease," said Yusri Elsayed, M.D., M.H.Sc., Ph.D., Global Therapeutic Head, Oncology, Johnson & Johnson Innovative Medicine.

Vertex Pharmaceuticals Incorporated (Nasdaq: VRTX)

Vertex reported on Nov. 2 that third-quarter total revenue increased 12% to $3.44 billion compared to the third quarter of 2025, primarily driven by the continued performance of cystic fibrosis (CF) therapies and growth from diversification into additional disease areas. The company raised its full year 2026 total revenue guidance to $13.15 billion to $13.25 billion from $13.1 billion to $13.2 billion previously.

GAAP net income was $654 million compared to $1.1 billion for the third quarter of 2025, a decline the company said was primarily due to expenses related to the Crinetics Pharmaceuticals acquisition. Vertex closed that acquisition on Sept. 1. The company also said its BLA submission for accelerated approval of povetacicept in IgA nephropathy is under priority review by the FDA, with an assigned PDUFA target action date of Nov. 30, 2026.

"Vertex delivered excellent third quarter results marked by strong revenue growth across the increasingly diversified portfolio, continued advancement of the R&D pipeline, and the successful close of the Crinetics Pharmaceuticals acquisition," said Reshma Kewalramani, M.D., Chief Executive Officer and President of Vertex.

Humana Inc. (NYSE: HUM)

Humana on Nov. 6 reported third-quarter earnings per share of $1.33 on a GAAP basis and an Adjusted loss per share of $0.70, and raised its FY 2026 Adjusted EPS guidance to 'at least $9.50', up from the previous expectation of 'at least $9.00'. Third-quarter GAAP revenues were $41,155 million, compared with $32,649 million a year earlier, and the Insurance segment GAAP benefit ratio of 93.7 percent was favorable to management's guidance of 'slightly above 94 percent'.

The company said its FY 2026 Adjusted EPS guidance anticipates a year-over-year decline as a result of the Star Ratings headwind for Bonus Year 2026, net of mitigation. Humana also reported year-to-date growth of 146,800 patients, or 30 percent, in CenterWell Senior Primary Care, and year-to-date Medicaid membership growth of 103,600, or 7 percent, largely driven by the start of integrated Duals programs in Michigan, Illinois, and South Carolina.

"Humana is delivering positive results for our members, our patients and their health," said Humana President and CEO Jim Rechtin.

Edwards Lifesciences Corporation (NYSE: EW)

Edwards Lifesciences reported on Nov. 4 that third-quarter sales grew 10.5% to $1.72 billion, and constant currency sales grew 11.2%. TAVR sales grew 8.0% to $1.24 billion, and adjusted sales of transcatheter mitral and tricuspid therapies (TMTT) grew 44.0% to $207 million. The company increased its total company sales growth guidance, which is provided on a constant currency basis, to approximately 11.5% from 10% to 11%, and its adjusted EPS guidance to $2.97 to $3.05 from $2.95 to $3.05.

Edwards said that during the quarter, CMS released the final, updated national coverage determination (NCD) for TAVR, and that the updated policy represents an important step toward improving and expanding timely, high-quality access to care. The company also said the FDA approved the PASCAL Precision system for tricuspid regurgitation in October.

"We delivered strong third-quarter growth of 11.2% which exceeded expectations, with broad-based performance across our businesses and regions, giving us the confidence to raise our full-year outlook," said Bernard Zovighian, CEO of Edwards Lifesciences.

McKesson Corporation (NYSE: MCK)

McKesson reported on Nov. 4 that fiscal 2027 second-quarter consolidated revenues of $111.0 billion increased 8%, earnings per diluted share of $10.44 increased $1.52, and Adjusted Earnings per Diluted Share of $11.68 increased 18%. The company raised its fiscal 2027 Adjusted Earnings per Diluted Share guidance range to $45.60 to $46.40, from the previous range of $44.20 to $45.00.

McKesson said the revenue increase was driven by growth in the North American Pharmaceutical and Oncology & Multispecialty segments due to increased prescription volumes and distribution of specialty products, partially offset by lower contributions from branded pharmaceuticals. On Nov. 2, the company completed the acquisition of Precision Medicine Group, LLC, a global provider of clinical research and biopharma commercialization service, which it said represents a meaningful milestone in advancing its strategy in oncology, multispecialty, and biopharma services.

"McKesson delivered another quarter of strong results, reflecting operational strength in our core business segments and disciplined execution across the enterprise," said Brian Tyler, chair and chief executive officer.

Medicare Open Enrollment closes on Dec. 7. Readers who want to see how quarterly results and FDA decisions show up on a stock chart can get the free Knowledge is Power guide from Stock Preachers at market-updates.com/.

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FAQ

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What guidance did Edwards Lifesciences raise?

Edwards raised total company sales growth guidance to approximately 11.5% on a constant currency basis, from 10% to 11%. It also increased adjusted earnings per share guidance to $2.97 to $3.05 from $2.95 to $3.05.

Which patients qualify for Johnson & Johnson's new RYBREVANT FASPRO approval?

RYBREVANT FASPRO received accelerated approval as a single agent for adults with recurrent or metastatic head and neck squamous cell carcinoma whose disease progressed on or after platinum-based chemotherapy and an anti-PD-(L)1 antibody. The indication excludes HPV-associated oropharyngeal squamous cell carcinoma.

Why does Humana still expect adjusted earnings to decline in 2026?

Humana expects a year-over-year adjusted earnings decline because of the Star Ratings headwind for Bonus Year 2026, net of mitigation. Its raised full-year guidance is at least $9.50 per share, compared with the previous expectation of at least $9.00.