The Cigna Group (NYSE: CI) reported third-quarter adjusted earnings of $7.98 per share on November 5, beating the $7.52 consensus, and raised its full-year profit forecast to at least $30.60 per share.
What happened
Cigna delivered third-quarter revenue of $73.7 billion, up 6 percent from a year earlier and above the $72.65 billion analysts expected. Shares climbed roughly 1.5 percent in premarket trading after the release.
The company also announced a multi-year, $3 billion modernization and productivity initiative focused on streamlining operations, improving workflows, and expanding the use of artificial intelligence tools. The investment equals roughly 1 percent of a year’s revenue at the current quarterly pace.
Key numbers from the quarter
| Metric | Q3 2026 | Q3 2025 | Change |
|---|---|---|---|
| Adjusted EPS | $7.98 | $7.83 | +1.9% |
| Revenue | $73.7B | $69.7B | +5.7% |
| Shareholders’ net income | $1.4B | $1.9B | -26% |
| Adjusted income from operations | $2.1B | $2.1B | flat |
Reported shareholders’ net income fell to $1.4 billion, or $5.47 per share, from $1.9 billion, or $6.98 per share, a year earlier. The gap between reported and adjusted results is worth watching. A year ago, net income was $1.9 billion on $69.7 billion of revenue; this quarter it was $1.4 billion on $73.7 billion. Adjusted income from operations, which excludes those items, held flat at $2.1 billion.
Segment results point in different directions
Cigna Healthcare, the insurance arm, grew adjusted revenue 9 percent, driven mainly by premium rate increases that cover expected medical cost inflation. The segment’s pre-tax adjusted income from operations rose 15 percent.
Evernorth Health Services, which includes the pharmacy benefit business, grew adjusted revenue 6 percent while its adjusted pre-tax income fell 4 percent. Total customer relationships declined 6 percent from year-end 2025 to 177.6 million.
Raised outlook and longer-term targets
Management lifted the 2026 adjusted EPS forecast by $0.15 to at least $30.60, above the $30.51 consensus. The company posted adjusted EPS of $7.79 in the first quarter and $7.78 in the second, and had already raised its outlook twice this year to at least $30.45 before this increase. The first three quarters produced $23.55 in combined adjusted EPS, and the new floor implies roughly $7.05 for the fourth quarter. The increase is the third outlook raise this year.
Cigna maintained its longer-term targets of 10 to 14 percent annual adjusted EPS growth and approximately $50 billion in cumulative operating cash flow.
What to watch
- The medical care ratio, the share of premiums spent on medical claims, is the key profitability gauge for the insurance business. Analysts expected a reading slightly above the second quarter’s 84.5 percent level.
- Specialty pharmacy growth at Evernorth has driven results all year, while pharmacy benefit margins stay under contract pressure.
- Executives said the $3 billion initiative should yield savings over multiple years, and investors will want a timeline for those savings.
- Total customer relationships fell 6 percent from year-end 2025. Watch whether that decline stabilizes through the fourth quarter.
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