The Cigna Group — Third Quarter 2026 Earnings Summary

Financial Performance:

• Total revenues for the third quarter 2026 increased 6% to $73.7 billion compared to $69.7 billion in the third quarter 2025.
• Adjusted revenues for the third quarter 2026 were $73.8 billion, compared to $69.6 billion in the third quarter 2025.
• Shareholders' net income for the third quarter 2026 was $1.4 billion ($5.47 per share), compared to $1.9 billion ($6.98 per share) in the third quarter 2025, primarily reflecting the absence of an after-tax gain on sale recognized in the prior year period.
• Adjusted income from operations for the third quarter 2026 was $2.1 billion ($7.98 per share), compared to $2.1 billion ($7.83 per share) in the third quarter 2025.
• SG&A expense ratio was 4.9% for the third quarter 2026, compared to 4.8% in the third quarter 2025.
• Adjusted SG&A expense ratio was 4.7% for the third quarter 2026, compared to 4.6% in the third quarter 2025.
• The debt-to-capitalization ratio was 41.8% at September 30, 2026, compared to 44.9% at September 30, 2025.
• Shareholders' equity was $43.4 billion at September 30, 2026, compared to $41.8 billion at September 30, 2025.
• Shareholders' equity per share was $164.70 at September 30, 2026, compared to $156.53 at September 30, 2025.

Guidance and Future Outlook:

• Raised full-year 2026 adjusted income from operations outlook to at least $30.60 per share, an increase of $0.15 from the prior projection.
• Full-year 2026 Evernorth adjusted income from operations, pre-tax, is projected to be at least $6.9 billion.
• Full-year 2026 Cigna Healthcare adjusted income from operations, pre-tax, is projected to be at least $4.6 billion, an increase of $50 million from the prior projection.
• Full-year 2026 Cigna Healthcare Medical Care Ratio (MCR) is projected at 84.2% +/- 25 basis points, a narrowing of 50 basis points from the prior projection.
• Long-term financial targets include a 10%-14% adjusted EPS CAGR and approximately $50 billion in cumulative operating cash flow through 2030.
• The outlook includes the impact of expected future share repurchases and anticipated 2026 dividends.

Business Segments and Product Lines:

• Evernorth Health Services: Adjusted revenues increased 6% to $63.8 billion, while pre-tax adjusted income from operations decreased 4% to $1.8 billion.
  • Pharmacy Benefit Services: Adjusted revenues increased 9% to $37.3 billion, primarily due to drug mix; pre-tax adjusted income from operations decreased 22% to $765 million, reflecting large client contract renewals and strategic investments.
  • Specialty and Care Services: Adjusted revenues increased 1% to $26.5 billion; pre-tax adjusted income from operations increased 15% to $1.1 billion, driven by strong organic growth and higher biosimilar and specialty generic adoption.
• Cigna Healthcare: Adjusted revenues increased 9% to $11.7 billion; pre-tax adjusted income from operations increased 15% to $1.2 billion, driven by higher net investment income and improved operating efficiency.
  • The Medical Care Ratio (MCR) was 85.0% for the third quarter 2026, compared to 84.8% in the third quarter 2025.
  • Net medical costs payable were $4.86 billion at September 30, 2026.
  • The Company announced a planned exit from the Individual and Family Plans medical business effective January 1, 2027.
• Corporate and Other Operations: Reported a pre-tax adjusted loss from operations of $372 million for the third quarter 2026.

Market and Competitive Landscape:

• Total customer relationships decreased 6% to 177.6 million as of September 30, 2026, due to lower pharmacy and behavioral customers.
• Total pharmacy customers decreased 5% to 117.7 million, reflecting expected client transitions and lower membership from health plan clients.
• Total behavioral customers decreased 19% to 23 million due to the termination of a government contract, with minimal impact to revenues and adjusted income from operations.
• Total medical customers increased 2% to 18.5 million, reflecting growth in Middle and Select markets, partially offset by lower membership in National Accounts.
• Favorable prior year reserve development on a gross pre-tax basis was $356 million for the nine months ended September 30, 2026.

Risks and Challenges:

• The press release notes that actual results may differ materially from forward-looking estimates due to factors including the ability to manage health care costs, respond to price competition, inflation, and regulatory changes.
• Risks include potential liability in managing medical practices, uncertainties surrounding government-sponsored programs, and the impact of new laws or regulations.
• The outlook excludes the potential effects of any other business combinations that may occur after the date of the release.

Management Commentary and Tone:

• Brian Evanko, President and CEO, stated that the company's vision is grounded in delivering greater value and personalized experiences, with priorities to drive core growth, leverage distinct capabilities, and execute with discipline.
• Management highlighted the "Accelerate to One" multi-year $3 billion modernization and productivity initiative designed to drive productivity, reduce costs, and support sustained long-term earnings growth.
• The tone reflects confidence in disciplined execution and the strength of capabilities to address increasingly complex health needs.

Other Key Points:

• Hosted the 2026 Investor Day, introducing the "Lead to One" vision and the "Accelerate to One" initiative.
• Year-to-date through November 4, 2026, the Company repurchased 1.8 million shares of common stock for approximately $500 million.
• The Company maintains sales capabilities in more than 30 markets and jurisdictions.
• The Cigna Group includes products and services marketed under Evernorth Health Services, Cigna Healthcare, or its subsidiaries.