Cigna Raises 2027 Adjusted Earnings Growth Forecast to at Least 10% After Strong Results
Key Facts
Cigna raised its 2026 financial outlook after third-quarter results exceeded market revenue estimates, with health insurance and specialty health services leading the company’s performance. Adjusted revenue was $73.79 billion, compared with analysts’ estimate of $72.72 billion, according to Reuters. On November 5, the company also announced a multiyear $3 billion initiative to modernize operations and boost productivity. The announcement came as the company set a forecast for adjusted earnings growth of at least 10% in 2027, according to Reuters. The results reflected diverging performance across the group’s units: Cigna Healthcare revenue rose, while Evernorth’s adjusted operating income before taxes declined.
Evernorth Health Services, the health services arm, recorded a 6% increase in adjusted revenue in the third quarter compared with the same period in 2025, but its adjusted income from operations before taxes fell 4%, according to the company’s statement. The divergence highlights that revenue growth did not translate into higher operating earnings for the unit during the quarter. By contrast, Cigna Healthcare’s adjusted revenue rose 9% year over year. The company attributed the increase mainly to higher premium rates to cover expected increases in medical costs. Health insurance growth thus accompanied services revenue growth, while Evernorth’s profitability remained under year-over-year pressure.
Details of the results showed that the group’s businesses contributed differently to performance, with health insurance, specialty pharmacy and health services leading the results, according to Reuters. In contrast, the company’s statement said growth in health care and specialty services was partly offset by a lower contribution from pharmacy benefit services. This puts overall revenue growth in the context of more varied performance across units, rather than attributing it to one business. Chief Executive Brian Evanko said the company has a "clear strategic framework for long-term growth" and would continue to execute with discipline, according to Reuters. In the company’s statement, Evanko identified priorities including driving core growth, capitalizing on the group’s capabilities and executing with discipline. Management thereby links the units’ results to a broader growth and modernization plan.
Cigna announced its multiyear "Accelerate to One" initiative, valued at $3 billion, to modernize operations and boost productivity. The initiative coincides with the company’s long-term financial goals, which include compound annual adjusted earnings per share growth of between 10% and 14%, and cumulative operating cash flow of about $50 billion through 2030. These targets provide a framework extending beyond next year’s forecast, with a stated focus on earnings and cash flow. The company also expects adjusted earnings growth of at least 10% in 2027, according to Reuters. This places next year’s forecast alongside the longer-term targets, as the modernization initiative advances over several years.
The results and outlook were reflected in the stock’s trading before the market opened on the day of the announcement: Cigna shares rose 1.5% in premarket trading on November 5, according to Reuters via Investing.com. The stock had closed at $305.41 on November 4, according to EL7 data. The previous close provides a time reference for the session before the announcement, while premarket trading recorded the market’s response on the day the results were published. The company said its strategic framework focuses on creating long-term value and disciplined execution. The modernization initiative and stated targets remain part of the context for the company’s plan after it raised its outlook.