Cigna beats Q3 adjusted revenue on segment growth, raises FY outlook

Overview

• US health insurer's Q3 adjusted revenue rose yr/yr, beating analyst expectations

• Adjusted income from operations per share was stable yr/yr at $7.98

• Company raised 2026 outlook for adjusted income from operations to at least $30.60 per share

Outlook

• Cigna raises 2026 adjusted income from operations outlook to at least $30.60 per share

• Company expects 2026 Evernorth adjusted income from operations, pre-tax of at least $6.9 bln

• Cigna Healthcare 2026 medical care ratio outlook narrowed to 84.2% plus or minus 25 bps

Result Drivers

• SEGMENT GROWTH - Q3 revenue growth was driven by increases in both Evernorth Health Services and Cigna Healthcare

• PHARMACY CLIENT TRANSITIONS - Lower pharmacy customer numbers reflected expected client transitions and reduced membership from health plan clients

• SPECIALTY BUSINESS GROWTH - Specialty and Care Services saw strong organic growth, including higher biosimilar and specialty generic adoption

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 18 "strong buy" or "buy", 9 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the managed healthcare peer group is "buy"

• Wall Street's median 12-month price target for The Cigna Group is $339.00, about 11% above its November 4 closing price of $305.41

• The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 9 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)