The Cigna Group
CI · NYSE
Next quarter
Reports Oct 29, 2026.
Consensus is $7.46 EPS for Sep 2026 across 7 estimates, ranging $7.44 to $7.48.
CI Jun 2026
- 2.64%
- -2.99%
- $7.58
- $7.78
- —
- $71.67B
Reported results
- $71.67B
- 20.88%
- $2.68B
- 3.73%
- $1.66B
- $6.29
Highlights
- Earnings beat: Adjusted EPS was $7.78, 2.64% above the $7.58 consensus, while adjusted income from operations increased 6% year over year to $2.05 billion.
- Revenue growth: Total revenue rose 7% year over year to $71.67 billion, up from $67.18 billion, with growth in both Evernorth Health Services and Cigna Healthcare.
- Cigna Healthcare strength: Segment adjusted income from operations increased 17% to $1.28 billion, with adjusted revenue up 9% to $11.73 billion and pre-tax margin expanding 70 basis points to 10.9%.
- Evernorth mix: Adjusted revenue increased 6% to $61.47 billion, but adjusted operating income fell 2% to $1.66 billion as Pharmacy Benefit Services earnings declined 27% to $609 million, partly offset by 22% growth in Specialty and Care Services to $1.05 billion.
- Guidance raised: Full-year 2026 adjusted EPS guidance increased by $0.10 to at least $30.45; Cigna Healthcare operating income guidance rose by $25 million to at least $4.55 billion.
- Medical cost trends: Cigna Healthcare’s medical care ratio rose to 84.5% from 83.2% a year ago, reflecting unusually favorable prior-year risk adjustment benefits in the year-ago Individual and Family Plans period.
- Operating efficiency: The consolidated adjusted SG&A ratio improved to 4.6% from 4.9%, while the GAAP SG&A ratio fell to 4.8% from 5.1%.
- Capital return: Cigna repurchased 0.9 million shares for approximately $250 million through July 29, versus 8.2 million shares and $2.6 billion in the first half of 2025, and declared a $1.56 quarterly dividend.
Analysis
The Cigna Group delivered a modest adjusted earnings beat in the second quarter, with adjusted EPS of $7.78 versus the $7.58 consensus. Adjusted operating income rose 6% year over year to $2.05 billion, and total revenue increased 7% to $71.67 billion. GAAP shareholders’ net income was $1.66 billion, or $6.29 per share, compared with $1.53 billion, or $5.71, a year ago. Sequentially, revenue increased from $68.49 billion, while adjusted EPS was broadly stable against $7.79 and adjusted operating income edged down from $2.06 billion.
The print was defined by a stronger Cigna Healthcare performance and a mixed Evernorth result. Cigna Healthcare operating income rose 17% to $1.28 billion on 9% revenue growth, led by improved U.S. Employer margins, despite a 130-basis-point increase in the medical care ratio to 84.5%. Evernorth revenue grew 6%, but operating income declined 2% as client-focused contract renewals and other initiatives reduced Pharmacy Benefit Services earnings by 27%; Specialty and Care Services earnings rose 22%. Management raised full-year adjusted EPS guidance to at least $30.45, while maintaining Evernorth guidance and increasing Cigna Healthcare operating income guidance to at least $4.55 billion.
Cigna Healthcare performance
Cigna Healthcare was the main earnings driver. Adjusted revenue increased 9% year over year to $11.73 billion, primarily from premium rate increases, while pre-tax adjusted income from operations rose 17% to $1.28 billion. The segment’s margin improved to 10.9% from 10.2%, supported by better performance in the U.S. Employer business.
- Medical care ratio: The MCR increased 130 basis points to 84.5%, largely because the second quarter of 2025 benefited from higher prior-year risk adjustment gains in Individual and Family Plans. Favorable prior-year reserve development was $268 million in the first half of 2026, compared with $297 million a year earlier.
- Membership: Total medical customers increased 2% year over year to 18.4 million, with administrative services-only customers up 3% to 14.7 million. Insured customers declined 3% to 3.7 million, while U.S. Healthcare customers overall fell 5% to 2.4 million.
- Business transition: Cigna plans to exit its Individual and Family Plans medical business effective January 1, 2027. Individual and Family Plans premiums were $860 million in the quarter, down from $941 million a year earlier.
Evernorth earnings mix
Evernorth continued to grow revenue, but the quarter showed the cost of client-focused commercial initiatives in Pharmacy Benefit Services. Adjusted revenue rose 6% to $61.47 billion, while pre-tax adjusted income from operations declined 2% to $1.66 billion and margin contracted to 2.7% from 2.9%.
- Pharmacy Benefit Services: Revenue increased 8% to $34.50 billion, primarily from drug mix, but operating income fell 27% to $609 million. Management attributed the decline to large client contract renewals and other client-focused initiatives, consistent with its previously stated strategy.
- Specialty and Care Services: Revenue increased 4% to $26.97 billion and operating income rose 22% to $1.05 billion. Strong organic specialty growth, greater generic and biosimilar adoption, and operating efficiencies supported the result.
- Utilization: Pharmacy claim volume declined 2% year over year to 537 million adjusted claims, making revenue growth more dependent on claims composition and pricing than volume.
Guidance and efficiency
Management raised the full-year outlook despite the pressure in Pharmacy Benefit Services. The increase was concentrated in Cigna Healthcare, while the company continued to point to operating efficiency and lower overhead ratios as structural supports for earnings.
- 2026 outlook: Adjusted EPS guidance increased by $0.10 to at least $30.45. Evernorth operating income guidance remained at least $6.90 billion, while Cigna Healthcare guidance increased by $25 million to at least $4.55 billion.
- Medical outlook: The full-year Cigna Healthcare MCR range remains 83.7% to 84.7%, implying continued attention to medical cost trend and pricing adequacy.
- Cost discipline: Consolidated adjusted SG&A was $3.29 billion, or 4.6% of adjusted revenue, versus 4.9% a year ago. The company recorded $70 million of second-quarter strategic optimization costs and expects substantially all of the related $269 million accrued liability to be paid by year-end.
Cash flow and capital
Capital deployment was more restrained than in the year-ago period, while liquidity remained substantial. The company generated $710 million of operating cash flow in the first half, compared with $34 million in 2025, although working-capital movements and factoring activity were important contributors.
- Liquidity: Cigna had $6.6 billion of cash and short-term investments, $6.5 billion of undrawn revolving credit capacity, and $5.5 billion of remaining commercial paper capacity at June 30. Commercial paper outstanding was approximately $1.0 billion.
- Leverage: Debt represented 42.8% of total capitalization at quarter-end, compared with 43.0% at December 31, 2025. Long-term debt was $29.09 billion and short-term debt was $2.79 billion.
- Shareholder returns: First-half share repurchases were $250 million, versus $2.62 billion in the comparable 2025 period. The board declared a third-quarter dividend of $1.56 per share.
