Key facts
- Cigna's third-quarter adjusted profit of $7.98 per share exceeded market consensus of $7.50.
- Evernorth Health Services posted third-quarter adjusted revenue of $63.77 billion, up about 6% from a year earlier.
- Specialty pharmacy and care services profit rose 15% to $1.06 billion; pharmacy benefit services profit fell 22% to $765 million.
- Cigna's medical loss ratio rose to 85% from 84.8% a year earlier; analysts polled by LSEG had expected 85.18%.
- Cigna's healthcare unit reported adjusted revenue of $11.71 billion, up about 9% from a year earlier.
- Cigna plans to exit ACA coverage at the end of 2026, after exiting its Medicare Advantage business last year.
Cigna on November 5, 2026 raised its 2026 adjusted profit forecast to at least $30.60 per share, 15 cents above its previous forecast and above analysts' expectations of $30.51, after third-quarter results beat estimates. The company also said it expects adjusted profit to grow at least 10% in 2027.
Third-quarter adjusted revenue was $73.79 billion against analysts' estimates of $72.72 billion, and adjusted profit was $7.98 per share against market consensus of $7.50.
Evernorth Health Services, which includes Cigna's pharmacy-benefit, specialty-pharmacy and care-services businesses, posted adjusted revenue of $63.77 billion, up about 6% from a year earlier. Profit for specialty pharmacy and care services grew 15% to $1.06 billion, while pharmacy benefit services profit fell 22% to $765 million.
The healthcare unit, which includes the fee-based business of managing corporate-sponsored health plans and ACA plans, reported adjusted revenue of $11.71 billion, up about 9% from a year ago.
Cigna's medical loss ratio, the share of premiums spent on patient care, rose to 85% from 84.8% a year earlier because of changes in its US-employer insurance business. Analysts polled by LSEG had expected 85.18%.
CEO Brian Evanko said: "We have a clear strategic growth framework for creating long-term value and will continue to execute with discipline." Gabelli portfolio manager Daniel Barasa said the insurance business drove the results and that medical costs, while still elevated, were in line with what Cigna had priced for.
Cigna exited its Medicare Advantage business last year and plans to exit ACA coverage at the end of 2026. In September it announced a program aimed at about $3 billion in cost savings by 2030, focused on AI-enabled tools. Morningstar analyst Julie Utterback said costs of Cigna's transition to a fee-based model for its pharmacy benefit business are largely being incurred in 2026, which could help profit growth in 2027.