Key facts
- Cigna raised its annual profit forecast for 2026 to at least $30.45 per share.
- The company reported second-quarter adjusted earnings of $7.78 per share, exceeding estimates of $7.60 per share.
- Total revenue for the second quarter increased by 7% to $71.67 billion, surpassing analyst expectations of $70.34 billion.
- Growth was driven by the Evernorth Health Services unit, which includes pharmacy benefit management and specialty pharmacy, with revenue up 6% to $61.47 billion.
- The company is reducing exposure to government-backed health insurance businesses and focusing on employer-sponsored healthcare and its pharmacy benefits unit.
Cigna raised its annual profit forecast on Thursday, citing strength in its health services division, particularly its pharmacy benefit management and specialty drug businesses. The company reported second-quarter adjusted earnings of $7.78 per share, surpassing analyst expectations of $7.60 per share, and total revenue rose 7% to $71.67 billion, exceeding estimates of $70.34 billion.
The Evernorth Health Services unit, which encompasses the pharmacy benefit manager and specialty pharmacy operations, saw its adjusted revenue increase by 6% to $61.47 billion. This growth was partly attributed to increased utilization of specialty drugs for complex conditions like cancer and multiple sclerosis.
Cigna has been strategically shifting its focus away from government-backed insurance plans, such as Medicare Advantage and Affordable Care Act offerings, due to elevated medical costs. The company is concentrating instead on its core employer-sponsored healthcare business and its pharmacy benefits management unit.
The company's medical loss ratio for the quarter was 84.5%, slightly higher than the 83.2% reported in the prior year and marginally above the analyst expectation of 84.46%. The prior year's ratio had been positively impacted by higher risk-adjustment payments in its individual and family plans business.
For the full year 2026, Cigna increased its adjusted profit forecast by 10 cents, projecting at least $30.45 per share, which is slightly above the average analyst estimate of $30.41 per share.