Cigna raises 2026 profit forecast, tops Q3 estimates

Cigna (CI) topped third-quarter profit estimates and raised its full-year 2026 profit forecast. Adjusted income from operations was $2.1 billion, or $7.98 per share.

Shares fell 1.3% at 3:59 p.m. ET, from a $305.41 close.

Total revenues rose 6% from a year earlier.

Here's how the company did:

• Adjusted EPS: $7.98 vs. $7.83 a year earlier, against the $7.73 consensus estimate
• Adjusted revenue: $73.79 billion vs. $69.57 billion a year earlier, against the $74.9 billion consensus estimate
• Shareholders' net income: $1.44 billion, or $5.47 per share, vs. $1.87 billion, or $6.98 per share, a year earlier

Net income fell on the absence of an after-tax gain on sale recognized in the third quarter of 2025.

2026 guidance

Full-year 2026 adjusted income from operations outlook rose to at least $30.60 per share, from at least $30.45 on July 30.

Cigna Healthcare adjusted pre-tax income forecast rose $50 million to at least $4.6 billion. Its medical care ratio narrowed by 50 basis points to 84.2%, plus or minus 25 basis points.

Evernorth Health Services adjusted pre-tax income forecast is at least $6.9 billion.

Segment results

Evernorth Health Services adjusted revenues rose 6% to $63.77 billion. Adjusted pre-tax income fell 4% to $1.83 billion.

Pharmacy Benefit Services adjusted pre-tax income fell 22%, reflecting large client contract renewals and strategic investments.

Specialty and Care Services adjusted pre-tax income rose 15% on organic growth in specialty businesses, including higher biosimilar and specialty generic adoption.

Cigna Healthcare adjusted revenues rose 9% to $11.71 billion, primarily reflecting premium rate increases to cover expected increases in medical costs. Adjusted pre-tax income rose 15% to $1.19 billion, primarily due to higher net investment income and improved operating efficiency.

Cigna Healthcare medical care ratio was 85.0%, up from 84.8%, primarily due to U.S. Employer business mix, partly offset by a lower Individual and Family Plans ratio.

Cigna announced in April it will exit the Individual and Family Plans medical business as of Jan. 1, 2027.

Costs and capital returns

The SG&A expense ratio was 4.9%, up from 4.8%. The adjusted SG&A expense ratio was 4.7%, up from 4.6%, reflecting investments in long-term growth, partly offset by operating efficiencies.

The debt-to-capitalization ratio was 41.8% at Sept. 30, down from 44.9% a year earlier.

Year to date through Nov. 4, the company repurchased 1.8 million shares for about $500 million.

Total customer relationships fell 6% from Dec. 31, 2025, to 177.6 million, due to lower pharmacy and behavioral customers. Total medical customers rose 2% to 18.5 million.

Investor Day targets

At its 2026 Investor Day, the company set long-term financial targets, including a 10% to 14% adjusted EPS compound annual growth rate and about $50 billion in cumulative operating cash flow through 2030. It also announced Accelerate to One, a multiyear $3 billion modernization and productivity initiative.

CEO Brian Evanko described three priorities: driving core growth, leveraging the company's distinct capabilities, and executing with discipline.