second quarter 2026
Filed Jul 30, 2026The Cigna Group Reports Strong Second Quarter 2026 Results, Raises 2026 Outlook
Total revenues increased 7% and adjusted income from operations increased 6% from second quarter 2025, while the company raised its full-year adjusted income from operations outlook to at least $30.45 per share. Cigna Healthcare earnings growth offset a decline in Evernorth pre-tax adjusted income from operations.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total RevenuesGAAP | $71,668 million | – | 7% |
| Net Investment Results from Equity Method Investmentsother | $(110) million | – | – |
| Adjusted Revenuesnon-GAAP | $71,558 million | – | – |
| Shareholders' Net IncomeGAAP | $1,660 million | – | – |
| Shareholders' Net Income, per shareGAAP | $6.29 per share | – | – |
| Adjusted Income from Operationsnon-GAAP | $2,054 million | – | 6% |
| Adjusted Income from Operations, per sharenon-GAAP | $7.78 per share | – | – |
| Net Investment (Gains)other | $(55) million | – | – |
| Amortization of Acquired Intangible Assetsother | $296 million | – | – |
| Special Itemsother | $153 million | – | – |
| SG&A expense ratioGAAP | 4.8% | – | – |
| Adjusted SG&A expense rationon-GAAP | 4.6% | – | – |
| Evernorth Health Services Adjusted Income from Operations, Pre-Taxnon-GAAP | $1,663 million | – | decreased 2% |
| Evernorth Health Services Margin, Pre-Taxnon-GAAP | 2.7% | – | – |
| Pharmacy Benefit Services Adjusted Income from Operations, Pre-Taxnon-GAAP | $609 million | – | decreased 27% |
| Specialty and Care Services Adjusted Income from Operations, Pre-Taxnon-GAAP | $1,054 million | – | increased 22% |
| Cigna Healthcare Adjusted Income from Operations, Pre-Taxnon-GAAP | $1,276 million | – | increased 17% |
| Cigna Healthcare Margin, Pre-Taxnon-GAAP | 10.9% | – | – |
| Cigna Healthcare Medical Care RatioGAAP | 84.5% | – | – |
| Corporate and Other Operations Adjusted (Loss) from Operations, Pre-Taxnon-GAAP | $(389) million | – | – |
| Six Months Ended June 30, 2026 Total RevenuesGAAP | $140,162 million | – | – |
| Six Months Ended June 30, 2026 Adjusted Revenuesnon-GAAP | $140,075 million | – | – |
| Six Months Ended June 30, 2026 Shareholders' Net IncomeGAAP | $3,314 million | – | – |
| Six Months Ended June 30, 2026 Adjusted Income from Operationsnon-GAAP | $4,112 million | – | – |
| Six Months Ended June 30, 2026 Shareholders' Net Income, per shareGAAP | $12.55 per share | – | – |
| Six Months Ended June 30, 2026 Adjusted Income from Operations, per sharenon-GAAP | $15.58 per share | – | – |
| Total Pharmacy Customersother | 118,243 thousand | – | – |
| U.S. Healthcare Customersother | 16,678 thousand | – | – |
| International Health Customersother | 1,735 thousand | – | – |
| Total Medical Customersother | 18,413 thousand | – | – |
| Behavioral Care Customersother | 27,621 thousand | – | – |
| Dental Customersother | 18,488 thousand | – | – |
| Total Customer Relationshipsother | 182,765 thousand | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Evernorth Health ServicesAdjusted revenue growth was driven by Pharmacy Benefit Services drug mix and Specialty and Care Services strong specialty volume growth. | $61,468 million | – | increased 6% |
| Pharmacy Benefit ServicesAdjusted revenues increased primarily due to drug mix. | $34,496 million | – | increased 8% |
| Specialty and Care ServicesAdjusted revenues increased reflecting strong specialty volume growth. | $26,972 million | – | increased 4% |
| Cigna HealthcareAdjusted revenue growth primarily reflected premium rate increases to cover expected increases in medical costs. | $11,728 million | – | increased 9% |
Full Year Ending December 31, 2026 outlook
- NoteAdjusted Income from Operations, per share: at least $30.45
- NoteEvernorth Adjusted Income from Operations, Pre-Tax: at least $6,900 million
- NoteCigna Healthcare Adjusted Income from Operations, Pre-Tax: at least $4,550 million
- NoteCigna Healthcare Medical Care Ratio: 83.7% to 84.7%
- NoteAdjusted Income from Operations, per share Change from Prior Projection: +$0.10
- NoteCigna Healthcare Adjusted Income from Operations, Pre-Tax Change from Prior Projection: +$25 million
Capital returns
- Year to date through July 29, 2026, the company repurchased 0.9 million shares of common stock for approximately $250 million.
- The full-year 2026 adjusted income from operations outlook includes the impact of expected future share repurchases and anticipated 2026 dividends.
What drove it
- Total revenues for second quarter 2026 increased 7% relative to second quarter 2025, driven by growth in both Evernorth Health Services and Cigna Healthcare.
- Consolidated adjusted income from operations increased 6% relative to second quarter 2025, driven by higher contributions from Cigna Healthcare.
- Cigna Healthcare adjusted income from operations, pre-tax increased 17%, primarily due to an improved margin within the U.S. Employer business.
- Specialty and Care Services adjusted income from operations, pre-tax increased 22%, primarily reflecting strong organic growth in specialty businesses, higher generic and biosimilar adoption, and operating efficiencies.
- The SG&A expense ratio and adjusted SG&A expense ratio primarily reflected operating efficiency.
Concerns
- Evernorth Health Services adjusted income from operations, pre-tax decreased 2% relative to second quarter 2025.
- Pharmacy Benefit Services adjusted income from operations, pre-tax decreased 27%, primarily reflecting client-focused initiatives, including large client contract renewals, and customer-focused initiatives.
- Total customer relationships at June 30, 2026 decreased 3% from December 31, 2025 to 182.8 million.
- Total pharmacy customers at June 30, 2026 decreased 4% from December 31, 2025 to 118.2 million, reflecting expected client transitions and lower membership from health plan clients.
- The company announced its planned exit from the Individual and Family Plans medical business as of January 1, 2027.
What to watch
- Execution against the full-year 2026 adjusted income from operations outlook of at least $30.45 per share.
- Whether Cigna Healthcare Medical Care Ratio remains within the 83.7% to 84.7% full-year outlook range.
- Pharmacy Benefit Services profitability following large client contract renewals and customer-focused initiatives.
- Specialty volume growth, generic and biosimilar adoption, and associated operating efficiencies.
- Customer transitions, health plan client membership, and the planned January 1, 2027 exit from the Individual and Family Plans medical business.
Balance sheet and cash flow
- Cigna Healthcare net medical costs payable was $5.09 billion at June 30, 2026, $4.78 billion at March 31, 2026, and $4.49 billion at June 30, 2025.
- Favorable prior year reserve development on a gross pre-tax basis was $268 million for the six months ended June 30, 2026 and $297 million for the six months ended June 30, 2025.
Analysis
The Cigna Group reported a solid second quarter, with total revenues of $71,668 million, up 7% from second quarter 2025, and shareholders' net income of $1,660 million, or $6.29 per share. Adjusted income from operations was $2,054 million, or $7.78 per share, up 6% from the prior-year quarter. Consolidated adjusted revenue was $71,558 million, and the SG&A expense ratio and adjusted SG&A expense ratio improved to 4.8% and 4.6%, respectively, from 5.1% and 4.9%.
Cigna Healthcare was the primary earnings contributor. Its adjusted revenues increased 9% to $11,728 million, primarily reflecting premium rate increases to cover expected increases in medical costs. Pre-tax adjusted income from operations rose 17% to $1,276 million, primarily due to improved margin in the U.S. Employer business. The segment's medical care ratio was 84.5%, compared with 83.2% in second quarter 2025, with the comparison primarily reflecting higher prior-year risk adjustment benefits in the Individual and Family Plans business recognized in second quarter 2025.
Evernorth Health Services produced adjusted revenues of $61,468 million, up 6%, but pre-tax adjusted income from operations declined 2% to $1,663 million. Pharmacy Benefit Services revenue increased 8% on drug mix, while its pre-tax adjusted income from operations declined 27% due primarily to client-focused initiatives, including large client contract renewals, and customer-focused initiatives. Specialty and Care Services revenue increased 4% on strong specialty volume growth and pre-tax adjusted income from operations rose 22%, supported by organic specialty growth, generic and biosimilar adoption, and operating efficiencies.
Customer trends were mixed. Total customer relationships at June 30, 2026 decreased 3% from December 31, 2025 to 182.8 million, while total pharmacy customers declined 4% to 118.2 million amid expected client transitions and lower membership from health plan clients. Total medical customers increased 2% from December 31, 2025 to 18.4 million, reflecting Middle and Select market growth that was partly offset by lower National Accounts membership. The company also disclosed its planned exit from the Individual and Family Plans medical business as of January 1, 2027.
Capital allocation included repurchases of 0.9 million shares for approximately $250 million year to date through July 29, 2026. Management raised full-year 2026 adjusted income from operations guidance to at least $30.45 per share, a +$0.10 change from the prior projection. The outlook also calls for at least $6,900 million of Evernorth pre-tax adjusted income from operations, at least $4,550 million for Cigna Healthcare, and a Cigna Healthcare medical care ratio of 83.7% to 84.7%.
Management, verbatim
By harnessing technology, data and AI to deliver more personalized experiences, improve access and lower costs, we are creating greater value every day. Our strong second quarter results reflect continued progress against these priorities and demonstrate the effectiveness of our strategy and execution.
Brian C. Evanko, President and Chief Executive Officer of The Cigna Group
Not in the filing
stated, not guessed- GAAP gross profit and gross margin
- GAAP operating income and operating margin
- Operating cash flow
- Free cash flow
- Cash and cash equivalents
- Total debt
- Dividend amount or dividend per share
- Full-year 2026 revenue guidance
- Full-year 2026 gross-margin guidance
- Full-year 2026 operating-expense guidance
- Full-year 2026 tax-rate guidance
- Prior outlook release for comparison with reported results
- Percentage changes for adjusted revenues and several reported metric line items where no change was printed
- Prior-year comparative amounts for the six months ended June 30, 2026 metrics
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.