Cigna Raises 2026 Earnings Floor to $30.60 per Share
Key Facts
On November 5, Cigna raised the floor of its 2026 adjusted earnings-per-share outlook to $30.60, up $0.15 from its previous forecast, after reporting third-quarter results. The company said adjusted earnings per share were $7.98 for the quarter, compared with $7.83 in the same period last year. Adjusted revenue rose to $73.793 billion from $69.570 billion. Total revenue also increased 6% year over year, while consolidated adjusted operating income was unchanged. Cigna shares closed at $301.48 on November 5.
Revenue growth reflected mixed performance across the company's two segments. At Cigna Healthcare, adjusted revenue rose 9% to $11.708 billion in the third quarter from $10.755 billion a year earlier. Adjusted pretax operating income increased 15% to $1.193 billion. The company attributed the improvement mainly to higher investment income and better operating efficiency. The medical care ratio was 85.0%, compared with 84.8% in the year-earlier period. Cigna said the increase was mainly related to the mix of its U.S. employer business.
Evernorth reported adjusted revenue of $63.774 billion, up 6% year over year, but adjusted pretax operating income fell 4% to $1.829 billion. The decline was steeper in pharmacy benefit services, where adjusted pretax operating income dropped 22% to $765 million. Cigna attributed this mainly to contract renewals with large clients and strategic investments. This weakness partially offset the impact of growth in Cigna Healthcare, specialty services and care on group results. The company said total adjusted operating income remained unchanged despite revenue growth.
For the nine months ended September 30, Cigna reported adjusted earnings of $23.55 per share, compared with $21.76 in the same period a year earlier. By contrast, net income attributable to shareholders was $1.442 billion in the third quarter, compared with $1.868 billion a year earlier. The company attributed the decline in net income mainly to the absence of an after-tax gain on a sale recorded in the third quarter of 2025. The figures show a divergence between adjusted performance measures and reported net income, which was affected by the comparison with the prior-year gain. The higher annual adjusted outlook comes as the company's segments continue to follow divergent operating paths.
On September 30, the company had kept the floor of its 2026 adjusted earnings-per-share outlook at $30.45 and set a target for compound annual growth of between 10% and 14% through 2030. It also announced its “Lead to One” strategy and a multiyear $3 billion modernization and productivity initiative on Investor Day. Cigna expects the initiative to generate $3 billion in gross savings by 2030. The latest outlook increase puts the annual floor above the level the company reaffirmed in September. The plan forms part of its longer-term objectives, while its results will depend on the trajectory of the business and its announced investments.
Cigna expects adjusted earnings-per-share growth of at least 10% in 2027 compared with its 2026 earnings base for ongoing operations, which is approximately $30 and includes the impact of exiting the individual and family medical plans market. The company announced plans to exit that business effective January 1, 2027. It said detailed 2027 guidance would be presented on its fourth-quarter earnings call. This links the next year's growth estimate to an earnings base that accounts for the planned exit. The company is expected to provide those details when it reports fourth-quarter results.