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Cigna Q3 Earnings Top Estimates on Cigna Healthcare Strength
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Key Takeaways
Cigna's Q3 adjusted EPS rose 1.9% to $7.98, beating estimates by 7%, while revenues grew 6.1% to $73.8B.
Cigna Healthcare's revenues rose 8.9%, while operating income grew 14.9% on improved operating efficiency.
CI raised its 2026 adjusted EPS outlook to at least $30.60 and Healthcare's operating income target to $4.6B.
The Cigna Group (CI - Free Report) reported third-quarter 2026 adjusted earnings per share (EPS) of $7.98, which beat the Zacks Consensus Estimate by 7%. The bottom line improved 1.9% year over year.
Adjusted revenues increased 6.1% year over year to $73.8 billion. The top line surpassed the consensus mark by 0.4%.
The strong quarterly results benefited from premium growth in Cigna Healthcare and a favorable drug mix in Evernorth Health Services. Cigna Healthcare’s improved operating efficiency and higher net investment income supported profitability. However, the upside was partly offset by lower contributions from Pharmacy Benefit Services and increased operating expenses.
Cigna's medical customer base stood at 18.5 million as of Sept. 30, 2026, up 2% year over year and surpassed the Zacks Consensus Estimate of 18.4 million. The increase reflected growth in the Middle and Select markets, partially offset by reduced membership in National Accounts.
Total benefits and expenses increased 6.1% year over year to $71.3 billion in the reported quarter, primarily due to higher pharmacy and other service costs and medical expenses. The adjusted selling, general and administrative (SG&A) expense ratio deteriorated 10 basis points year over year to 4.7%, reflecting investments in long-term growth initiatives.
Adjusted income from operations remained nearly flat year over year at $2.1 billion, as improved contributions from Cigna Healthcare and Specialty and Care Services were largely offset by lower contributions from Pharmacy Benefit Services.
Cigna’s Segmental Update
Evernorth Health Services: The unit's adjusted revenues increased 5.6% year over year to $63.8 billion in the third quarter, primarily driven by favorable drug mix in Pharmacy Benefit Services and specialty distribution revenue growth. The metric, however, missed the Zacks Consensus Estimate of $64.1 billion.
Adjusted operating income, on a pre-tax basis, came in at $1.8 billion, down 3.9% year over year but beat the Zacks Consensus Estimate by 0.9%. The pre-tax margin contracted 30 basis points year over year to 2.9%.
Cigna Healthcare: The segment recorded adjusted revenues of $11.7 billion, which increased 8.9% year over year in the third quarter. Growth was primarily driven by premium rate increases to cover expected increases in medical costs.
Pre-tax adjusted operating income improved 14.9% year over year to $1.2 billion, surpassing the Zacks Consensus Estimate of $1.1 billion. The increase primarily benefited from increased net investment income and improved operating efficiency.
The medical care ratio (MCR) deteriorated 20 basis points year over year to 85%, primarily due to the U.S. Employer business mix.
Cigna’s Q3 Financial Position
Cigna exited the third quarter with cash and cash equivalents of $6.2 billion, which fell 19.4% from the 2025-end level. Total assets of $157.6 billion slid 0.2% from the 2025-end level.
Long-term debt amounted to $28.8 billion, down 6.5% from the figure as of Dec. 31, 2025. Short-term debt totaled $2.3 billion.
Total equity of $43.7 billion rose 4.4% from the 2025-end level.
Net cash provided by operating activities amounted to $3.3 billion in the first nine months of 2026, compared with $3.5 billion in the prior-year period.
Cigna’s 2026 Outlook
Management raised its adjusted EPS guidance to at least $30.60 for 2026 from the previous projection of at least $30.45.
The MCR is now expected to be 84.2%, plus or minus 25 basis points, compared with the earlier guidance range of 83.7-84.7%.
Adjusted operating income, on a pre-tax basis, for the Evernorth Health Services segment is still expected to be at least $6.9 billion. The same metric for the Cigna Healthcare unit is now anticipated to be a minimum of $4.6 billion, up from the prior projection of at least $4.55 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%.
Here are some stocks from the broader Medical space that have also reported their quarterly results: UnitedHealth Group Incorporated (UNH - Free Report) , Molina Healthcare, Inc. (MOH - Free Report) and Centene Corporation (CNC - Free Report) . Here's how they have performed:
UnitedHealth reported third-quarter 2026 adjusted earnings per share (EPS) of $4.69, which beat the Zacks Consensus Estimate of $4.12. The bottom line rose 60.6% year over year. However, UNH’s revenues declined 0.4% year over year to $112.7 billion. The quarterly results were aided by the strength witnessed in Optum Insight and Optum Rx. Medical cost management, pricing discipline and benefit design changes also contributed to the upside. However, weakness in Optum Health and declining memberships partially offset the positives.
Molina Healthcare reported third-quarter 2026 adjusted EPS of $0.89, which beat the Zacks Consensus Estimate by 23.6%. The bottom line declined 51.6% from the year-ago quarter's level. Revenues amounted to $11.08 billion, which decreased 3.4% year over year. MOH’s third-quarter earnings benefited from operating cost discipline and rate updates. However, declining membership, lower premium revenues and elevated medical costs weighed on performance.
Centene reported third-quarter 2026 adjusted earnings per share of 58 cents, up 16% from 50 cents a year ago. The bottom line beat the Zacks Consensus Estimate of 7 cents by 728.6%. Revenues totaled $50.65 billion, which rose 1.9% year over year. CNC’s third-quarter results benefited from higher premium and service revenues, supported by increased premium yield, growth in Prescription Drug Plan membership, rate increases in Marketplace and Medicaid, and state-directed payments. These gains were partly offset by lower Medicaid and Marketplace membership.
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Cigna Q3 Earnings Top Estimates on Cigna Healthcare Strength
Key Takeaways
The Cigna Group (CI - Free Report) reported third-quarter 2026 adjusted earnings per share (EPS) of $7.98, which beat the Zacks Consensus Estimate by 7%. The bottom line improved 1.9% year over year.
Adjusted revenues increased 6.1% year over year to $73.8 billion. The top line surpassed the consensus mark by 0.4%.
The strong quarterly results benefited from premium growth in Cigna Healthcare and a favorable drug mix in Evernorth Health Services. Cigna Healthcare’s improved operating efficiency and higher net investment income supported profitability. However, the upside was partly offset by lower contributions from Pharmacy Benefit Services and increased operating expenses.
Cigna Group Price, Consensus and EPS Surprise
Cigna Group price-consensus-eps-surprise-chart | Cigna Group Quote
CI’s Q3 Performance
Cigna's medical customer base stood at 18.5 million as of Sept. 30, 2026, up 2% year over year and surpassed the Zacks Consensus Estimate of 18.4 million. The increase reflected growth in the Middle and Select markets, partially offset by reduced membership in National Accounts.
Total benefits and expenses increased 6.1% year over year to $71.3 billion in the reported quarter, primarily due to higher pharmacy and other service costs and medical expenses. The adjusted selling, general and administrative (SG&A) expense ratio deteriorated 10 basis points year over year to 4.7%, reflecting investments in long-term growth initiatives.
Adjusted income from operations remained nearly flat year over year at $2.1 billion, as improved contributions from Cigna Healthcare and Specialty and Care Services were largely offset by lower contributions from Pharmacy Benefit Services.
Cigna’s Segmental Update
Evernorth Health Services: The unit's adjusted revenues increased 5.6% year over year to $63.8 billion in the third quarter, primarily driven by favorable drug mix in Pharmacy Benefit Services and specialty distribution revenue growth. The metric, however, missed the Zacks Consensus Estimate of $64.1 billion.
Adjusted operating income, on a pre-tax basis, came in at $1.8 billion, down 3.9% year over year but beat the Zacks Consensus Estimate by 0.9%. The pre-tax margin contracted 30 basis points year over year to 2.9%.
Cigna Healthcare: The segment recorded adjusted revenues of $11.7 billion, which increased 8.9% year over year in the third quarter. Growth was primarily driven by premium rate increases to cover expected increases in medical costs.
Pre-tax adjusted operating income improved 14.9% year over year to $1.2 billion, surpassing the Zacks Consensus Estimate of $1.1 billion. The increase primarily benefited from increased net investment income and improved operating efficiency.
The medical care ratio (MCR) deteriorated 20 basis points year over year to 85%, primarily due to the U.S. Employer business mix.
Cigna’s Q3 Financial Position
Cigna exited the third quarter with cash and cash equivalents of $6.2 billion, which fell 19.4% from the 2025-end level. Total assets of $157.6 billion slid 0.2% from the 2025-end level.
Long-term debt amounted to $28.8 billion, down 6.5% from the figure as of Dec. 31, 2025. Short-term debt totaled $2.3 billion.
Total equity of $43.7 billion rose 4.4% from the 2025-end level.
Net cash provided by operating activities amounted to $3.3 billion in the first nine months of 2026, compared with $3.5 billion in the prior-year period.
Cigna’s 2026 Outlook
Management raised its adjusted EPS guidance to at least $30.60 for 2026 from the previous projection of at least $30.45.
The MCR is now expected to be 84.2%, plus or minus 25 basis points, compared with the earlier guidance range of 83.7-84.7%.
Adjusted operating income, on a pre-tax basis, for the Evernorth Health Services segment is still expected to be at least $6.9 billion. The same metric for the Cigna Healthcare unit is now anticipated to be a minimum of $4.6 billion, up from the prior projection of at least $4.55 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%.
CI’s Zacks Rank
CI currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
How Did Peers Perform?
Here are some stocks from the broader Medical space that have also reported their quarterly results: UnitedHealth Group Incorporated (UNH - Free Report) , Molina Healthcare, Inc. (MOH - Free Report) and Centene Corporation (CNC - Free Report) . Here's how they have performed:
UnitedHealth reported third-quarter 2026 adjusted earnings per share (EPS) of $4.69, which beat the Zacks Consensus Estimate of $4.12. The bottom line rose 60.6% year over year. However, UNH’s revenues declined 0.4% year over year to $112.7 billion. The quarterly results were aided by the strength witnessed in Optum Insight and Optum Rx. Medical cost management, pricing discipline and benefit design changes also contributed to the upside. However, weakness in Optum Health and declining memberships partially offset the positives.
Molina Healthcare reported third-quarter 2026 adjusted EPS of $0.89, which beat the Zacks Consensus Estimate by 23.6%. The bottom line declined 51.6% from the year-ago quarter's level. Revenues amounted to $11.08 billion, which decreased 3.4% year over year. MOH’s third-quarter earnings benefited from operating cost discipline and rate updates. However, declining membership, lower premium revenues and elevated medical costs weighed on performance.
Centene reported third-quarter 2026 adjusted earnings per share of 58 cents, up 16% from 50 cents a year ago. The bottom line beat the Zacks Consensus Estimate of 7 cents by 728.6%. Revenues totaled $50.65 billion, which rose 1.9% year over year. CNC’s third-quarter results benefited from higher premium and service revenues, supported by increased premium yield, growth in Prescription Drug Plan membership, rate increases in Marketplace and Medicaid, and state-directed payments. These gains were partly offset by lower Medicaid and Marketplace membership.