BLOOMFIELD, Conn. – November 05, 2026 -- The Cigna Group raised its 2026 outlook for adjusted income from operations to at least $30.60 per share after third-quarter revenues rose 6% to $73.7 billion, driven by growth in both Evernorth Health Services and Cigna Healthcare.
Adjusted earnings edge up while net income falls on a year-earlier gain
Adjusted income from operations was $2.1 billion, or $7.98 per share, against $7.83 per share in the third quarter of 2025. Shareholders' net income fell to $1.4 billion, or $5.47 per share, from $1.9 billion, or $6.98 per share, because the prior-year period included an after-tax gain on sale. Cigna said adjusted income was stable year on year, as growth in Cigna Healthcare and Specialty and Care Services offset a lower contribution from Pharmacy Benefit Services.
Pharmacy Benefit Services profit drops 22% on contract renewals
Pharmacy Benefit Services adjusted revenues rose 9%, mainly on drug mix. Pre-tax adjusted income fell 22%, which Cigna attributed to large client contract renewals and strategic investments. Specialty and Care Services revenues rose 1%, while pre-tax adjusted income rose 15% on organic growth, including higher biosimilar and specialty generic adoption. That adoption lowered specialty pharmacy revenue. For Evernorth overall, adjusted revenues rose 6% and pre-tax adjusted income fell 4%.
Cigna Healthcare pre-tax income rises 15% on premium increases
Cigna Healthcare adjusted revenues rose 9%, primarily from premium rate increases to cover expected higher medical costs. Pre-tax adjusted income rose 15% on higher net investment income and improved operating efficiency. The medical care ratio was 85.0%, up from 84.8% a year earlier, on U.S. Employer business mix, partly offset by a lower ratio in Individual and Family Plans. Cigna announced in April 2026 that it will exit the Individual and Family Plans medical business on January 1, 2027.
Net medical costs payable were $4.86 billion at September 30, versus $4.53 billion a year earlier. Favorable prior-year reserve development was $356 million for the first nine months of 2026, up from $319 million in the same period of 2025.
Customer relationships shrink 6% to 177.6 million
Pharmacy customers declined 5% from year-end 2025 to 117.7 million on expected client transitions and lower health plan membership. Behavioral customers fell 19% to 23 million after a government contract ended, with minimal effect on revenue and adjusted income. Medical customers rose 2% to 18.5 million, with growth in Middle and Select markets partly offset by lower National Accounts membership.
Investor Day sets 10%-14% EPS growth target and $3B efficiency program
At its 2026 Investor Day, Cigna introduced its "Lead to One" vision. Long-term targets include a 10%-14% compound annual growth rate in adjusted EPS and about $50 billion in cumulative operating cash flow through 2030. The company also announced "Accelerate to One," a multi-year, $3 billion modernization and productivity initiative. CEO Brian Evanko said the program aims to "drive productivity, reduce costs" and support long-term earnings growth.
Leverage falls to 41.8% as buybacks reach $500 million
The debt-to-capitalization ratio was 41.8% at September 30, down from 44.9% a year earlier and 43.0% at December 31, 2025. The adjusted SG&A expense ratio was 4.7%, versus 4.6% a year earlier, reflecting growth investments partly offset by efficiencies. Through November 4, Cigna repurchased 1.8 million shares for about $500 million.