The Cigna Group raised its 2026 earnings outlook after third-quarter results showed its employer medical business growing, even as it prepares to leave the individual and family plan market at year-end, according to Cigna’s recent earnings release.
Total revenues rose 6% to $73.7 billion, and adjusted income from operations was $2.1 billion, or $7.98 per share, compared with $7.83 a year earlier. Cigna now expects full-year adjusted income of at least $30.60 per share, up $0.15 from its prior projection. Shareholders’ net income fell to $1.4 billion, or $5.47 per share, from $1.9 billion, mainly because a third-quarter 2025 after-tax gain on a sale did not recur.
“Our vision for The Cigna Group’s next chapter of profitable growth is grounded in delivering greater value and personalized experiences for our customers, with three priorities: driving core growth, leveraging our distinct capabilities, and executing with discipline,” said Brian Evanko, president and CEO.
Cigna Healthcare’s adjusted revenues rose 9% to $11.7 billion, which the company attributed mainly to premium rate increases covering expected medical cost growth. Adjusted pre-tax income climbed 15% to $1.2 billion on higher net investment income and better operating efficiency.
The medical care ratio was 85.0%, against 84.8% a year earlier, reflecting US employer business mix, partly offset by a lower ratio in individual plans. Cigna raised its full-year Cigna Healthcare pre-tax outlook to at least $4.6 billion and narrowed its ratio range to 84.2% plus or minus 25 basis points.
Medical customers reached 18.5 million, up 2% since December, with gains in Middle and Select markets offsetting lower National Accounts membership. On the earnings call transcript, CFO Ann Dennison said, “We continue to see strong growth in our Select segment, which serves US employers with fewer than 500 employees.” She put customer growth in that segment at 5% year to date.
Pharmacy Benefit Services revenue rose 9% to $37.3 billion, but adjusted pre-tax income fell 22% to $765 million, which Cigna linked to large client renewals and strategic investments.
Evanko told analysts the company’s rebate-free “Signature” pharmacy model will apply to Cigna Healthcare’s fully insured book on Jan. 1, 2027, with broader adoption across Evernorth clients ramping in 2028. He said broker education on the model is largely complete. Any change in economics for fully insured clients would be reflected in pricing through standard case-by-case underwriting, he added. The company first announced the model in 2025.
On stop-loss, Evanko said most of the margin recovery planned for 2026 and 2027 had been achieved this year, with strong client retention.
Cigna reiterated that its exit from Individual and Family Plans takes effect Jan. 1, 2027. The move affects about 369,000 members in 11 states, according to a separate company announcement. Dennison estimated an all-in headwind of about $200 million to Cigna Healthcare in 2027, including lost margin and stranded overhead, which she said puts 2027 run-rate adjusted earnings near $30 per share.
Brokers with affected clients face marketplace enrollment deadlines that vary by state. In HealthCare.gov states, plans chosen by Dec. 15 start Jan. 1.
Cigna also held its Investor Day on Sept. 30, setting a 10% to 14% adjusted earnings per share growth target through 2030 and a $3 billion modernization initiative called “Accelerate to One.”
