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Cigna Q1 Earnings Beat Estimates on Strong Evernorth Unit
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Key Takeaways
CI posted Q1 adjusted EPS of $7.79, up 15.6% YoY, with revenues of $68.5B.
Evernorth revenues rose 9% to $58.4B on drug mix and higher specialty volumes; margin 2.5%.
Cigna Healthcare revenues fell 21% to $11.5B after HCSC deal; operating income rose 18%, MCR 79.8%.
The Cigna Group (CI - Free Report) reported first-quarter 2026 adjusted earnings per share (EPS) of $7.79, which beat the Zacks Consensus Estimate by 2.2%. The bottom line improved 15.6% year over year.
Adjusted revenues grew 4.7% year over year to $68.5 billion. The top line beat the consensus mark by 2.7%.
The quarterly results were aided by the strong Evernorth Health Services segment as a result of expanding membership base and higher specialty volumes. However, the upside was partly offset by rising pharmacy costs and a sharp revenue decline in Cigna Healthcare due to the Health Care Services Corporation (HCSC) transaction.
Cigna’s medical customer base came in at 18.3 million as of March 31, 2026, which inched up 1.6% year over year and surpassed the Zacks Consensus Estimate of 18.1 million. The metric benefited on the back of well-performing Middle, Select and International markets.
Total benefits and expenses of $66.1 billion increased 4% year over year in the quarter under review due to a rise in pharmacy and other service costs. The adjusted SG&A expense ratio improved 100 basis points (bps) year over year to 4.8%, resulting from a shift in business mix and better operational efficiency.
Adjusted income from operations totaled $2.1 billion, which advanced 12% year over year, attributable to higher contributions from the Cigna Healthcare and Evernorth Health Services segments.
Cigna’s Segmental Update
Evernorth Health Services: The unit’s adjusted revenues rose 9% year over year to $58.4 billion in the first quarter as a result of drug mix in the Pharmacy Benefit Services business, and improved specialty volumes in the Specialty and Care Services business. The metric outpaced the Zacks Consensus Estimate of $56.6 billion.
Adjusted operating income, on a pre-tax basis, came in at $1.47 billion, which inched up 2% year over year and marginally beat the consensus mark of $1.45 billion. The metric was aided by solid organic growth in specialty businesses. However, the pre-tax margin deteriorated 20 bps year over year to 2.5%.
Cigna Healthcare: The segment recorded adjusted revenues of $11.5 billion, which dropped 21% year over year in the quarter under review. The metric suffered due to the HCSC transaction.
Pre-tax adjusted operating income improved 18% year over year to $1.5 billion, higher than the Zacks Consensus Estimate of $1.4 billion. The metric gained from higher margins in U.S. Healthcare across U.S. Employer and Individual and Family Plan businesses.
MCR came in at 79.8% at the first-quarter end, which improved 240 bps year over year as a result of the HCSC transaction.
Cigna’s Financial Position (As of March 31, 2026)
Cigna exited the first quarter with cash and cash equivalents of $7 billion, which fell 8.3% from the 2025-end level. Total assets of $153.3 billion slid 2.9% from the 2025-end level.
Long-term debt amounted to $29.4 billion, down 4.9% from the figure as of Dec. 31, 2025. Short-term debt totaled $1.5 billion.
Total equity of $42.4 billion inched up 1.4% from the 2025-end level.
Cigna generated operating cash flows of $1.1 billion in the first quarter, which plunged 41% year over year.
Cigna’s 2026 Outlook
Adjusted EPS is currently estimated to be a minimum of $30.35 for 2026, up from the prior projection of “at least $30.25”. The updated guidance indicates growth of at least 1.7% from the 2025 reported figure.
MCR is reiterated to be in the band of 83.7-84.7%.
Adjusted operating income, on a pre-tax basis, for the Evernorth Health Services segment, is continued to be expected at a minimum of $6.9 billion.
The same for the Cigna Healthcare unit is presently forecasted to be a minimum of $4.525 billion, whereas the earlier projection called for the metric to be at least $4.5 billion.
Earlier, adjusted revenues were forecasted to be around $280 billion, which indicates an improvement of around 2% from the 2025 figure.
Adjusted operating income was anticipated to be a minimum of $7.95 billion.
Operating cash flow was forecasted at around $9 billion. Capital expenditures were expected to be around $1.3 billion.
Cigna expected total medical customers to be roughly 18.1 million.
The adjusted SG&A expense ratio was estimated at around 5%.
Of the Medical sector players that have reported first-quarter 2026 results so far, the bottom-line results of UnitedHealth Group Incorporated (UNH - Free Report) , Elevance Health, Inc. (ELV - Free Report) and Humana Inc. (HUM - Free Report) beat the respective Zacks Consensus Estimate.
UnitedHealth Group reported first-quarter 2026 adjusted earnings per share (EPS) of $7.23, which beat the Zacks Consensus Estimate of $6.46. The bottom line rose 0.4% year over year. Revenues rose 2% year over year to $111.7 billion. The top line beat the consensus mark by 2.1%. UnitedHealth’s first-quarter premium of $87.6 billion increased from $86.5 billion a year ago. UNH’s adjusted medical care ratio (MCR) was 83.9% in the first quarter, which improved 90 bps from the year-ago period.
UnitedHealth’s adjusted operating earnings declined 1.7% year over year to $9 billion in the first quarter. Revenues of the health benefits business of UnitedHealth, UnitedHealthcare, rose 1.9% year over year to $86.3 billion in the first quarter. The UnitedHealthcare business catered to 49.1 million people as of March 31, 2026, which fell 2.1% year over year. Revenues in the Optum business line were $63.7 billion, which fell from $63.9 billion a year ago. Optum’s adjusted earnings from operations declined to $3.3 billion from $3.9 billion a year ago.
Elevance Health’s first-quarter 2026 adjusted earnings per share (EPS) of $12.58 surpassed the Zacks Consensus Estimate by 17.8%. The bottom line rose 5.1% year over year. Operating revenues advanced 1.5% year over year to $49.5 billion. The top line beat the consensus mark by 3.7%. Medical membership of Elevance Health was around 45.4 million as of March 31, 2026, which dipped 0.9% year over year. Premiums totaled $41 billion in the quarter under review, which improved 0.3% year over year and surpassed our estimate of $39.6 billion.
Product revenues grew 7.2% year over year to $6.2 billion. Net investment income rose 29.7% year over year to $765 million. Adjusted operating margin of 6.5% deteriorated 20 basis points (bps) year over year. The operating expense ratio came in at 12.8%, which deteriorated 190 bps year over year. The benefit expense ratio deteriorated 40 bps year over year to 86.8%. The Health Benefits unit recorded operating revenues of $42.5 billion in the first quarter, which rose 2.6% year over year. The Carelon segment’s operating revenues rose 7.9% year over year to $18 billion in the quarter under review.
Humana reported first-quarter 2026 adjusted earnings of $10.31 per share, which beat the Zacks Consensus Estimate by 3.5%. However, the bottom line fell 11% year over year. Revenues improved 23.5% year over year to $39.6 billion. The top line surpassed the consensus mark by 0.5%. Humana’s premiums totaled $37.7 billion, which advanced 23.6% year over year. Services revenues rose 25.7% year over year to $1.7 billion. Investment income of $262 million fell 0.8% year over year in the quarter under review. The benefit ratio came in at 89.4%, which deteriorated 240 basis points (bps) year over year.
HUM’s net income declined 4.7% year over year to $1.2 billion but beat our estimate of $1.1 billion. The Insurance segment’s revenues rose 23% year over year to $38.1 billion in the first quarter. Adjusted operating income dropped 8.8% year over year to $1.4 billion. Total medical membership of the segment was 17.7 million as of March 31, 2026, which rose 19.4% year over year. The CenterWell unit recorded revenues of $6.1 billion in the quarter under review, which improved 19.7% year over year. Adjusted operating income dropped 25.1% year over year to $338 million. The operating cost ratio of 94.5% deteriorated 340 bps year over year.
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Cigna Q1 Earnings Beat Estimates on Strong Evernorth Unit
Key Takeaways
The Cigna Group (CI - Free Report) reported first-quarter 2026 adjusted earnings per share (EPS) of $7.79, which beat the Zacks Consensus Estimate by 2.2%. The bottom line improved 15.6% year over year.
Adjusted revenues grew 4.7% year over year to $68.5 billion. The top line beat the consensus mark by 2.7%.
The quarterly results were aided by the strong Evernorth Health Services segment as a result of expanding membership base and higher specialty volumes. However, the upside was partly offset by rising pharmacy costs and a sharp revenue decline in Cigna Healthcare due to the Health Care Services Corporation (HCSC) transaction.
The Cigna Group Price, Consensus and EPS Surprise
The Cigna Group price-consensus-eps-surprise-chart | The Cigna Group Quote
CI’s Q1 Performance
Cigna’s medical customer base came in at 18.3 million as of March 31, 2026, which inched up 1.6% year over year and surpassed the Zacks Consensus Estimate of 18.1 million. The metric benefited on the back of well-performing Middle, Select and International markets.
Total benefits and expenses of $66.1 billion increased 4% year over year in the quarter under review due to a rise in pharmacy and other service costs. The adjusted SG&A expense ratio improved 100 basis points (bps) year over year to 4.8%, resulting from a shift in business mix and better operational efficiency.
Adjusted income from operations totaled $2.1 billion, which advanced 12% year over year, attributable to higher contributions from the Cigna Healthcare and Evernorth Health Services segments.
Cigna’s Segmental Update
Evernorth Health Services: The unit’s adjusted revenues rose 9% year over year to $58.4 billion in the first quarter as a result of drug mix in the Pharmacy Benefit Services business, and improved specialty volumes in the Specialty and Care Services business. The metric outpaced the Zacks Consensus Estimate of $56.6 billion.
Adjusted operating income, on a pre-tax basis, came in at $1.47 billion, which inched up 2% year over year and marginally beat the consensus mark of $1.45 billion. The metric was aided by solid organic growth in specialty businesses. However, the pre-tax margin deteriorated 20 bps year over year to 2.5%.
Cigna Healthcare: The segment recorded adjusted revenues of $11.5 billion, which dropped 21% year over year in the quarter under review. The metric suffered due to the HCSC transaction.
Pre-tax adjusted operating income improved 18% year over year to $1.5 billion, higher than the Zacks Consensus Estimate of $1.4 billion. The metric gained from higher margins in U.S. Healthcare across U.S. Employer and Individual and Family Plan businesses.
MCR came in at 79.8% at the first-quarter end, which improved 240 bps year over year as a result of the HCSC transaction.
Cigna’s Financial Position (As of March 31, 2026)
Cigna exited the first quarter with cash and cash equivalents of $7 billion, which fell 8.3% from the 2025-end level. Total assets of $153.3 billion slid 2.9% from the 2025-end level.
Long-term debt amounted to $29.4 billion, down 4.9% from the figure as of Dec. 31, 2025. Short-term debt totaled $1.5 billion.
Total equity of $42.4 billion inched up 1.4% from the 2025-end level.
Cigna generated operating cash flows of $1.1 billion in the first quarter, which plunged 41% year over year.
Cigna’s 2026 Outlook
Adjusted EPS is currently estimated to be a minimum of $30.35 for 2026, up from the prior projection of “at least $30.25”. The updated guidance indicates growth of at least 1.7% from the 2025 reported figure.
MCR is reiterated to be in the band of 83.7-84.7%.
Adjusted operating income, on a pre-tax basis, for the Evernorth Health Services segment, is continued to be expected at a minimum of $6.9 billion.
The same for the Cigna Healthcare unit is presently forecasted to be a minimum of $4.525 billion, whereas the earlier projection called for the metric to be at least $4.5 billion.
Earlier, adjusted revenues were forecasted to be around $280 billion, which indicates an improvement of around 2% from the 2025 figure.
Adjusted operating income was anticipated to be a minimum of $7.95 billion.
Operating cash flow was forecasted at around $9 billion. Capital expenditures were expected to be around $1.3 billion.
Cigna expected total medical customers to be roughly 18.1 million.
The adjusted SG&A expense ratio was estimated at around 5%.
Cigna’s Zacks Rank
Cigna currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Other Medical Sector Releases
Of the Medical sector players that have reported first-quarter 2026 results so far, the bottom-line results of UnitedHealth Group Incorporated (UNH - Free Report) , Elevance Health, Inc. (ELV - Free Report) and Humana Inc. (HUM - Free Report) beat the respective Zacks Consensus Estimate.
UnitedHealth Group reported first-quarter 2026 adjusted earnings per share (EPS) of $7.23, which beat the Zacks Consensus Estimate of $6.46. The bottom line rose 0.4% year over year. Revenues rose 2% year over year to $111.7 billion. The top line beat the consensus mark by 2.1%. UnitedHealth’s first-quarter premium of $87.6 billion increased from $86.5 billion a year ago. UNH’s adjusted medical care ratio (MCR) was 83.9% in the first quarter, which improved 90 bps from the year-ago period.
UnitedHealth’s adjusted operating earnings declined 1.7% year over year to $9 billion in the first quarter. Revenues of the health benefits business of UnitedHealth, UnitedHealthcare, rose 1.9% year over year to $86.3 billion in the first quarter. The UnitedHealthcare business catered to 49.1 million people as of March 31, 2026, which fell 2.1% year over year. Revenues in the Optum business line were $63.7 billion, which fell from $63.9 billion a year ago. Optum’s adjusted earnings from operations declined to $3.3 billion from $3.9 billion a year ago.
Elevance Health’s first-quarter 2026 adjusted earnings per share (EPS) of $12.58 surpassed the Zacks Consensus Estimate by 17.8%. The bottom line rose 5.1% year over year. Operating revenues advanced 1.5% year over year to $49.5 billion. The top line beat the consensus mark by 3.7%. Medical membership of Elevance Health was around 45.4 million as of March 31, 2026, which dipped 0.9% year over year. Premiums totaled $41 billion in the quarter under review, which improved 0.3% year over year and surpassed our estimate of $39.6 billion.
Product revenues grew 7.2% year over year to $6.2 billion. Net investment income rose 29.7% year over year to $765 million. Adjusted operating margin of 6.5% deteriorated 20 basis points (bps) year over year. The operating expense ratio came in at 12.8%, which deteriorated 190 bps year over year. The benefit expense ratio deteriorated 40 bps year over year to 86.8%. The Health Benefits unit recorded operating revenues of $42.5 billion in the first quarter, which rose 2.6% year over year. The Carelon segment’s operating revenues rose 7.9% year over year to $18 billion in the quarter under review.
Humana reported first-quarter 2026 adjusted earnings of $10.31 per share, which beat the Zacks Consensus Estimate by 3.5%. However, the bottom line fell 11% year over year. Revenues improved 23.5% year over year to $39.6 billion. The top line surpassed the consensus mark by 0.5%. Humana’s premiums totaled $37.7 billion, which advanced 23.6% year over year. Services revenues rose 25.7% year over year to $1.7 billion. Investment income of $262 million fell 0.8% year over year in the quarter under review. The benefit ratio came in at 89.4%, which deteriorated 240 basis points (bps) year over year.
HUM’s net income declined 4.7% year over year to $1.2 billion but beat our estimate of $1.1 billion. The Insurance segment’s revenues rose 23% year over year to $38.1 billion in the first quarter. Adjusted operating income dropped 8.8% year over year to $1.4 billion. Total medical membership of the segment was 17.7 million as of March 31, 2026, which rose 19.4% year over year. The CenterWell unit recorded revenues of $6.1 billion in the quarter under review, which improved 19.7% year over year. Adjusted operating income dropped 25.1% year over year to $338 million. The operating cost ratio of 94.5% deteriorated 340 bps year over year.