Cigna Corporation

The Cigna Group reported second-quarter 2026 total revenues of $71.7 billion, adjusted after-tax earnings of $2.1 billion, and adjusted EPS of $7.78. Evernorth revenues increased 6% year over year to $61.5 billion, with pretax adjusted earnings of $1.7 billion; Specialty & Care Services pretax adjusted earnings grew 22% year over year to $1.1 billion, while Pharmacy Benefit Services pretax adjusted earnings were $609 million. Cigna Healthcare revenues grew 10% year over year to $11.8 billion, pretax adjusted earnings were $1.3 billion, and the medical care ratio was 84.5%. Management raised full-year 2026 adjusted EPS guidance to at least $30.45, kept full-year Evernorth pretax adjusted earnings guidance at at least $6.9 billion, raised Cigna Healthcare full-year pretax adjusted earnings outlook to at least $4.55 billion, and reiterated expected operating free cash flow of approximately $9 billion.

Brian Evanko framed the quarter as evidence that Cigna's model is working, saying both Evernorth and Cigna Healthcare were ahead of expectations and that the company is benefiting from a strong portfolio, disciplined execution, and customer demand for affordability and personalization. He highlighted AI-enabled tools like Pharmacy Forward and expanded care coordination as ways to shorten time to therapy, reduce administrative burden, and improve outcomes. His tone was confident and upbeat, with repeated emphasis on long-term opportunity, innovation, and the durability of the company's strategy.

Ann Dennison said the quarter came in ahead of expectations across both segments, with 6% year-over-year revenue growth in Evernorth to $61.5 billion and 10% growth in Cigna Healthcare to $11.8 billion. She pointed to Specialty & Care strength, biosimilar and specialty generic adoption, and improved operating efficiency as key drivers, while noting that Pharmacy Benefit Services earnings of $609 million were down year over year because of renewals/extensions and Signature investment. She also said operating cash flow was in line with expectations, debt-to-capitalization was 42.8% at June 30, the company bought back about 900,000 shares for approximately $250 million, and it expects to end the year closer to its 40% debt target.

Analysts focused on Evernorth earnings mix, PBM selling season, biosimilar and GLP-1 dynamics, Cigna Healthcare cost trends, risk adjustment, stop loss, IDR exposure, and capital allocation. Management said 2027 PBM new business is already above the prior two selling seasons combined, retention is over 97% for 2026 and preliminarily mid-90s or higher for 2027, and Signature is generating interest ahead of broader launch in 2028. On the medical side, management said cost trends remain high-single-digit, GLP-1 coverage for weight management is still limited across the book, risk adjustment was not a driver in the quarter, and stop loss trends were tracking in line with expectations. Management also said IDR abuse is worsening industry affordability, but the impact to Cigna is manageable within its pricing assumptions.