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

By Reuters News


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

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Revenue

$73.68 bln

Q3 Adjusted Revenue

Beat

$73.79 bln

$72.72 bln (17 Analysts)

Q3 EPS

$5.47


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


Reuters Recommended Reads

  • Nov 5 - Cigna raises annual profit forecast on strength in health services unit

  • Nov 4 - CVS to break up $117 billion business, separating pharmacies from insurance; shares fall

  • Nov 4 - Health insurers, hospitals rally after sweeping midterm win for Democrats


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(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.)

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