INVESTOR RELATIONS CONTACT: Ralph Giacobbe 860-787-7968
INVESTOR RELATIONS CONTACT: Ralph Giacobbe 860-787-7968 Ralph.Giacobbe@TheCignaGroup.com MEDIA CONTACT: Justine Sessions 860-810-6523 Justine.Sessions@Evernorth.com The Cigna Group Reports Strong ThirdQuarter 2026Results, Raises 2026 Outlook
• Shareholders’ net income forthe third quarter 2026was$1.4 billion, or$5.47per share
• Adjusted income from operations1forthe third quarter 2026was$2.1 billion, or$7.98per share
• Increasing 2026 outlook for adjusted income from operations1to at least $30.60 per share2
Hosted 2026 Investor Day, introducing the “Lead to One” vision, setting long-term financial targets, including 10%-14% adjusted EPS CAGR and • ~$50B in cumulative operating cash flow through 2030, and announcing “Accelerate to One” multi-year $3B modernization and productivity initiative
BLOOMFIELD, CT, November 5, 2026– Global health company The Cigna Group (NYSE: CI) today reported thirdquarter 2026results, reflecting disciplined execution across its businesses and the strength of its capabilities to address increasingly complex health needs. “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 Chief Executive Officer of The Cigna Group. “As we put our strategy in action, our strong third quarter results demonstrate how we are building on this momentum by making health care more affordable and personalized, while advancing Accelerate to One to drive productivity, reduce costs, and support sustained long-term earnings growth.” Shareholders’ net income for thirdquarter 2026was $1.4 billion, or $5.47per share compared to $1.9 billion, or $6.98per share for thirdquarter 2025 , primarily reflectingthe absence of an after-tax gain on salerecognized in third quarter 2025. The Cigna Group’s adjusted income from operations 1for thirdquarter 2026was $2.1 billion, or $7.98per share, compared with $2.1 billion, or $7.83per shar e,for thirdquarter 2025 . A reconciliation of shareholders’ net income to adjusted income from operations 1is provided on the following page and on Exhibit 1 of this earnings release. 2 CONSOLIDATED HIGHLIGHTS The following table includes highlights of results andreconciliations of total revenues to adjusted revenues 3and shareholders’ net income to adjusted income from operations 1:
Total revenues forthirdquarter2026increased6% relative • tothirdquarter2025, driven by growth in both Evernorth Health Services and Cigna Healthcare.
Adjusted income from operations1forthirdquarter2026was stable relative • tothirdquarter2025, reflecting strong growth in Cigna Healthcare and Specialty and Care Services, partially offset by lower contribution from Pharmacy Benefit Services.
The SG&A expense ratio4and adjusted SG&A expense ratio4were4.9%and4.7%forthirdquarter2026, • compared to4.8%and4.6%, respectively, inthirdquarter2025, reflecting investments andinitiatives to support long-term growth, partially offset by operating efficiencies.
• Year to date through November 4, 2026, the Company repurchased 1.8 million shares of common stock for approximately $500 million.
3 CUSTOMER RELATIONSHIPS The following table summarizes The Cigna Group’s medical customers and overall customer relationships: Customer Relationships (in thousands):
Total pharmacy customers atSeptember 30, 2026decreased5%fromDecember 31, 2025to117.7million, reflecting expected client transitions and lower • membership from health plan clients. ──────────────────────────────────────────────────────────────────────────────
Total behavioral customers at September 30, 2026 decreased 19% from December 31, 2025 to 23 million, due to the termination of a government contract,with minimal impact to The Cigna Group’s revenues and adjusted • income from operations. ──────────────────────────────────────────────────────────────────────────────
Total medical customers5atSeptember 30, 2026increased2%fromDecember 31, 2025to18.5 million, reflecting growth in Middle and Select markets, partially offset by lower membership in • National Accounts. ──────────────────────────────────────────────────────────────────────────────
4 HIGHLIGHTS OF SEGMENT RESULTS See Exhibit 1 for a reconciliation of adjusted income from operations 1to shareholders’ net income. Evernorth Health Services This segment includes the Pharmacy Benefit Services and Specialty and Care Services operating segments, which provide independent and coordinated health solutions and capabilities to enable the health care system to work better and help people live healthier lives. Pharmacy Benefit Services drives high-quality, cost-effective pharmacy care through various services such as drug claim adjudication, retail pharmacy network administration, benefit design consultation, drug utilization review, drug formulary management and access to our home delivery pharmacy. Specialty and Care Services provides specialty drugs for the treatment of complex and rare diseases, specialty distribution of pharmaceuticals and medical supplies, as well as clinical programs to help our clients drive better whole-person health outcomes through care services.
Evernorth Health Servicesthirdquarter2026adjusted revenues3increased6% • and adjusted income from operations, pre-tax1, decreased4%, relative tothirdquarter2025.
Adjusted income from operations, pre-tax1, decreased22%,primarily ◦ reflecting large client contract renewals and strategic investments, consistent with prior commentary.
Adjusted revenues3increased1%, reflecting strong specialty distribution ◦ revenue growth, partially offset by lower specialty pharmacy revenue,reflecting higher biosimilar and specialty generic adoption, which lowers costs for clients and patients.
Adjusted income from operations, pre-tax1, increased15%, primarily ◦ reflecting strong organic growth in specialty businesses, including higher biosimilar and specialty generic adoption.
5 Cigna Healthcare This segment includes the U.S. Healthcare and International Health operating segments, which provide comprehensive medical and coordinated solutions to clients and customers. U.S. Healthcare provides medical plans and other benefits and solutions for insured and self-insured clients as well as individual and family plan customers. International Health provides health care solutions in our international markets, as well as health solutions for globally mobile individuals and employees of multinational organizations. In April 2026, the Company announced its planned exit from the Individual and Family Plans medical business as of January 1, 2027.
Thirdquarter2026adjusted revenues3increased9%relative tothirdquarter2025, • primarily reflecting premium rate increases to cover expectedincreasesin medical costs.
Third quarter 2026 adjusted income from operations, pre-tax1, increased • 15% relative to third quarter 2025, primarily due to higher net investment income and improved operating efficiency.
The Cigna Healthcare MCR4was85.0%forthirdquarter2026, compared • to84.8%forthirdquarter2025, primarily due to U.S. Employer business mix, partially offset bya lower MCR4within our Individual and Family Plans business.
Cigna Healthcarenet medical costs payable8was $4.86 billionatSeptember 30, 2026,$5.09 billionatJune 30, 2026, and$4.53 billionatSeptember 30, • 2025.Favorableprior year reserve development on a gross pre-tax basis was$356million and$319million forthe nine months ended September 30, 2026and2025, respectively.
Corporate and Other Operations Corporate reflects interest expense, amounts not allocated to operating segments and includes intersegment eliminations. Other Operations is comprised of Corporate Owned Life Insurance (“COLI”), the Company’s run-off operations and other non-strategic businesses.
6 2026OUTLOOK 2 The Cigna Group’s outlook for full year 2026consolidated adjusted income from operations 1,2is at least $30.60 per share 2. This outlook includes the impact of expected future share repurchases and anticipated 2026dividends.
(dollars in millions, except where noted and per Projection for Full Year share amounts) Ending Change from Prior 2026 Consolidated Metrics December 31, 2026 Projection ────────────────────────────────────────────────────────────────────────────── Adjusted Income from at least $30.60 +$0.15 Operations, per share1,2 Evernorth Adjusted Income from Operations, at least $6,900 Pre-Tax1,2 Cigna Healthcare Adjusted Income from Operations, at least $4,600 +$50 Pre-Tax1,2 Cigna Healthcare Medical 84.2% +/- 25 bps Narrowed by 50 bps Care Ratio2,4
7 The foregoing statements represent the Company’s current estimates of The Cigna Group’s 2026consolidated and segment adjusted income from operations 1,2and other key metrics as of the date of this release. Actual results may differ materially depending on a number of factors. Investors are urged to read the Cautionary Note Regarding Forward-Looking Statements included in this release. Management does not assume any obligation to update these estimates. This quarterly earnings release and the Quarterly Financial Supplement are available on The Cigna Group’s website in the Investor Relations section ( https://investors.thecignagroup.com/overview/default.aspx). Management will be hosting a conference call to review third quarter 2026results and discuss full year 2026outlook beginning today at 8:30 a.m. ET. A link to the conference call is available in the Investor Relations section of The Cigna Group’s website located at https://investors.thecignagroup.com/events-and- presentations/default.aspx. The call-in numbers for the conference call are as follows: Live Call (888) 566-1889 (Domestic) (773) 799-3989 (International) Passcode: 11052026 Replay (866) 405-7290 (Domestic) (203) 369-0603 (International) It is strongly suggested you dial in to the conference call by 8:15 a.m. ET. About The Cigna Group The Cigna Group (NYSE: CI) is a global health company committed to creating a better future built on the vitality of every individual and every community. We relentlessly challenge ourselves to partner and innovate solutions for better health. The Cigna Group includes products and services marketed under Evernorth Health Services, Cigna Healthcare, or its subsidiaries. The Cigna Group maintains sales capabilities in more than 30 markets and jurisdictions, and has approximately 180 million customer relationships around the world. Learn more at thecignagroup.com . Notes:
Adjusted income (loss) from operations is a principal financial measure of profitability used by The Cigna Group’s management because it presents the underlying results of operations of the Company’s businesses and facilitates analysis of trends in underlying revenue, expenses and shareholders’ net income. Adjusted income (loss) from operations is defined as shareholders’ net income (or income before income taxes less pre-tax income (loss) attributable to noncontrolling interests for the segment metric) excluding net investment gains/losses, amortization of acquired intangible assets and special items. The Cigna Group’s share of certain investment results of its joint ventures 1. reported in the Cigna Healthcare segment using the equity method of accounting are also excluded. Special items are matters that management believes are not representative of the underlying results of normal, recurring operations due to their nature or size. Adjusted income (loss) from operations is measured on an after-tax basis for consolidated results and on a pre-tax basis for segment results. Consolidated adjusted income (loss) from operations is not determined in accordance with GAAP and should not be viewed as a substitute for the most directly comparable GAAP measure, shareholders’ net income. See Exhibit 1 for a reconciliation of consolidated adjusted income from operations to shareholders’ net income.
Management is not able to provide a reconciliation of adjusted income from operations to shareholders’ net income on a forward-looking basis because it is unable to predict, without unreasonable effort, certain components thereof including (i) 2. future net investment results and (ii) future special items. These items are inherently uncertain and depend on various factors, many of which are beyond The Cigna Group’s control. As such, any associated estimate and its impact on shareholders’ net income and total revenues could vary materially.
The Company’s outlook excludes the potential effects of any other business combinations that may occur after the date of this earnings release. The Company’s outlook includes the potential effects of expected future share repurchases and anticipated 2026 dividends. The timing and actual number of shares repurchased will depend on a variety of factors, including price, general business and market conditions, and alternate uses of capital. The share repurchase program may be effected through open market purchases in compliance with Rule 10b-18 under the Securities Exchange Act of 1934, as amended, including through Rule 10b5-1 trading plans, or privately negotiated transactions. The program may be suspended or discontinued at any time.
Adjusted revenues is used by The Cigna Group’s management because it facilitates analysis of trends in underlying revenue. The Company defines adjusted revenues as total revenues excluding the following adjustments: special items and The Cigna Group’s share of certain investment results of its joint ventures reported in the Cigna Healthcare segment using the equity method of accounting. Special items are matters that 3. management believes are not representative of the underlying results of normal, recurring operations due to their nature or size. We exclude these items from this measure because management believes they are not indicative of past or future underlying performance of the business. Adjusted revenues is not determined in accordance with GAAP and should not be viewed as a substitute for the most directly comparable GAAP measure, total revenues. See Exhibit 1 for a reconciliation of consolidated adjusted revenues to total revenues.
TheCigna Healthcaremedical care ratio (“MCR”) represents medical costs as a percentage of premiums for allCigna Healthcarerisk products provided • through guaranteed cost or experience-rated funding arrangements. Changes in percentages may be expressed in basis points (“bps”).
SG&A expense ratio on a GAAP basis for thethirdquarter2026represents enterprise selling, general and administrative expenses of$3,612 millionas a percentage of total revenue of$73.7 billionat a consolidated • level. SG&A expense ratio on a GAAP basis for thethirdquarter2025represents enterprise selling, general and administrative expenses of$3,362 millionas a percentage of total revenue of$69.7 billionat a consolidated level.
Adjusted SG&A expense ratio for thethirdquarter2026represents enterprise selling, general and administrative expenses of$3,443 millionexcluding special items of $169million as a percentage of adjusted revenue at a • consolidated level. Adjusted SG&A expense ratio for thethirdquarter2025represents enterprise selling, general and administrative expenses of$3,191 millionexcluding special items of $171million as a percentage of adjusted revenue at a consolidated level.
Total medical customers includes individuals who meet any one of the following criteria: (i) are covered under a medical insurance policy, managed care • arrangement, or administrative services agreement issued by Cigna Healthcare; (ii) have access to Cigna Healthcare’s provider network for covered services under their medical plan; or (iii) have medical claims that are administered by Cigna Healthcare.
6. Margin, pre-tax, is calculated by dividing adjusted income (loss) from operations, pre-tax by adjusted revenues for each segment.
The Cigna Group owns noncontrolling interests in certain operating joint ventures. As such, the adjusted revenues for the Cigna Healthcare 7. segment only include the Company’s share of the joint ventures’ earnings reported in Fees and Other Revenues using the equity method of accounting under GAAP.
Medical costs payable within theCigna Healthcaresegment are presented net of reinsurance and other 8. recoverables. The gross medical costs payable balance was$4.99 billionas ofSeptember 30, 2026,$5.23 billionas ofJune 30, 2026, and$4.68 billionas ofSeptember 30, 2025.
10 CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS This press release, and oral statements made in connection with this release, may contain forward- looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on The Cigna Group’s current expectations and projections about future trends, events and uncertainties. These statements are not historical facts. Forward-looking statements may include, among others, statements concerning our projected outlook for 2026 (including adjusted income from operations, including on a per share and segment basis, and medical care ratio); future financial or operating performance, including our ability to improve the health and vitality of those we serve; future growth, business strategy and strategic or operational initiatives, including our modernization and productivity initiatives; our ability to successfully implement actions across our business to strengthen our platform and build a more sustainable model for healthcare; economic, regulatory or competitive environments; financing or capital deployment plans and amounts available for future deployment; our prospects for growth in the coming years; and other statements regarding The Cigna Group’s future beliefs, expectations, plans, intentions, liquidity, cash flows, financial condition or performance. You may identify forward-looking statements by the use of words such as “believe,” “expect,” “project,” “plan,” “intend,” “anticipate,” “estimate,” “predict,” “potential,” “may,” “should,” “will” or other words or expressions of similar meaning, although not all forward-looking statements contain such terms. Forward-looking statements are subject to risks and uncertainties, both known and unknown, that could cause actual results to differ materially from those expressed or implied in forward-looking statements. Such risks and uncertainties include, but are not limited to: our ability to manage health care costs and respond to price competition, inflation and other pressures that could compress our margins or result in premiums that are insufficient to cover the cost of services delivered to our customers; our ability to compete effectively, differentiate our products and services from those of our competitors and adapt to changes in an evolving and rapidly changing industry; our ability to develop and effectively implement products and services to improve the accessibility, affordability and transparency of health care; changes in drug pricing or industry pricing benchmarks; our ability to maintain relationships with one or more key pharmaceutical manufacturers or if payments made or discounts provided decline; changes in the pharmacy provider marketplace or pharmacy networks; the potential for actual claims to exceed our estimates related to expected medical claims; our ability to develop and maintain satisfactory relationships with health care payors, physicians, hospitals, other health service providers and with producers and consultants; potential liability in connection with managing medical practices and operating pharmacies, onsite clinics and other types of medical facilities; uncertainties surrounding participation in government- sponsored programs and providing services to payors who participate in government-sponsored programs; the substantial level of government regulation over our business and the potential effects of new laws or regulations or changes in existing laws or regulations; compliance with applicable privacy, security and data laws, regulations and standards; the outcome of litigation, regulatory audits and investigations; compliance costs and potential failure of our prevention, detection and control systems; our ability to invest in and properly maintain our information technology and other business systems; our ability to prevent or contain effects of a potential cyberattack or other privacy or data security incident; risks related to our use of artificial intelligence and machine learning; dependence on success of relationships with third parties; risk of significant disruption within our operations or among key suppliers or third parties; political, legal, operational, regulatory, economic and other risks that could affect our multinational operations, including currency exchange rates; risks related to strategic transactions and realization of the expected benefits of such transactions, as well as integration or separation difficulties or underperformance relative to expectations which could lead to an impairment charge; our ability to achieve our strategic and operational initiatives; unfavorable economic and market conditions, the risk of a recession or other economic downturn and resulting impact on employment metrics, stock market or changes in interest rates; risks related to a downgrade in financial strength ratings of our insurance subsidiaries; the impact of our significant indebtedness and the potential for further indebtedness in the future; credit risk related to our reinsurers; as well as more specific risks and uncertainties discussed in our most recent report on Form 10-K and subsequent reports on Forms 10-Q and 8-K available through the Investor Relations section of www.thecignagroup.com. You should not place undue reliance on forward-looking statements, which speak only as of the date they are made, are not guarantees of future performance or results, and are subject to risks, uncertainties and assumptions that are difficult to predict or quantify. The Cigna Group undertakes no obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise, except as may be required by law.
(1) Adjusted revenues is defined as total revenues excluding the following adjustments: special items and The Cigna Group’s share of certain investment results of its joint ventures reported in the Cigna Healthcare segment using the equity method of accounting. These items are excluded because they are not indicative of past or future underlying performance of our businesses. (2) Includes Net investment gains/losses as presented in our Consolidated Statements of Income, as well as the Company’s share of certain investment results of its joint ventures reported in the Cigna Healthcare segment using the equity method of accounting, which are presented within Fees and other revenues in our Consolidated Statements of Income. (3) Adjusted income (loss) from operations is defined as shareholders’ net income (or income before income taxes less pre-tax income (loss) attributable to noncontrolling interests for the segment metric) excluding the following adjustments: net investment gains/losses, amortization of acquired intangible assets and special items. The Cigna Group’s share of certain investment results of its joint ventures reported in the Cigna Healthcare segment using the equity method of accounting are also excluded.
Full text with the tables
Exhibit 99.1
Press Release
INVESTOR RELATIONS CONTACT: Ralph Giacobbe 860-787-7968
Ralph.Giacobbe@TheCignaGroup.com MEDIA CONTACT: Justine Sessions 860-810-6523
Justine.Sessions@Evernorth.com The Cigna Group Reports Strong ThirdQuarter
2026Results, Raises 2026 Outlook
• Total revenues forthe third quarter 2026increased6% to$73.7 billion
• Shareholders’ net income forthe third quarter 2026was$1.4 billion,
or$5.47per share
• Adjusted income from operations1forthe third quarter 2026was$2.1 billion,
or$7.98per share
• Increasing 2026 outlook for adjusted income from operations1to at least
$30.60 per share2
Hosted 2026 Investor Day, introducing the “Lead to One” vision, setting
long-term financial targets, including 10%-14% adjusted EPS CAGR and
• ~$50B in cumulative operating cash
flow through 2030, and announcing “Accelerate to One” multi-year $3B
modernization and productivity initiative
BLOOMFIELD, CT, November 5, 2026– Global health company The Cigna Group (NYSE:
CI) today reported thirdquarter 2026results, reflecting disciplined execution
across its businesses and the strength of its capabilities to address
increasingly complex health needs. “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 Chief Executive Officer of The Cigna Group. “As
we put our strategy in action, our strong third quarter results demonstrate how
we are building on this momentum by making health care more affordable and
personalized, while advancing Accelerate to One to drive productivity, reduce
costs, and support sustained long-term earnings growth.” Shareholders’ net
income for thirdquarter 2026was $1.4 billion, or $5.47per share compared to $1.9
billion, or $6.98per share for thirdquarter 2025 , primarily reflectingthe
absence of an after-tax gain on salerecognized in third quarter 2025. The Cigna
Group’s adjusted income from operations 1for thirdquarter 2026was $2.1 billion,
or $7.98per share, compared with $2.1 billion, or $7.83per shar e,for
thirdquarter 2025 . A reconciliation of shareholders’ net income to adjusted
income from operations 1is provided on the following page and on Exhibit 1 of
this earnings release. 2 CONSOLIDATED HIGHLIGHTS The following table includes
highlights of results andreconciliations of total revenues to adjusted revenues
3and shareholders’ net income to adjusted income from operations 1:
Con…
Fin…
Res…
(un…
dol…
in
mil…
Tot…
Rev…
Net
Inv…
Res…
from
Equ…
Met…
Inv…
Adj…
Rev… Three Nine
Con… Mont… Mont…
Ear… Ended Ended
net Sept… 73,6… 69,7… June 71,6… Sept… 213,…
of 30, 110 (178 30, (110 30, 23
tax… 2026 73,7… 2025 69,5… ) 2026 71,5… ) 2026 213,…
──────────────────────────────────────────────────────────────────────────────
Sha…
Net $ 1,442 $ 1,868 $ 1,660 $ 4,756
Inc…
Net
Inv… 67 (43 ) (55 ) (221 )
Los…
(Ga…
Amo…
of
Acq… 449 332 296 1,060
Int…
Ass…
Spe… 146 (61 ) 153 621
Ite…
Adj…
Inc… $ 2,104 $ 2,096 $ 2,054 $ 6,216
from
Ope…
Sha…
Net
Inc… $ 5.47 $ 6.98 $ 6.29 $ 18.02
per
sha…
Adj…
Inc…
from $ 7.98 $ 7.83 $ 7.78 $ 23.55
Ope…
per
sha…
Total revenues forthirdquarter2026increased6% relative
• tothirdquarter2025,
driven by growth in both Evernorth Health Services and Cigna Healthcare.
Adjusted income from operations1forthirdquarter2026was stable relative
• tothirdquarter2025, reflecting strong growth in
Cigna Healthcare and Specialty and Care Services, partially offset by
lower contribution from Pharmacy Benefit Services.
The SG&A expense ratio4and adjusted SG&A expense
ratio4were4.9%and4.7%forthirdquarter2026,
• compared to4.8%and4.6%, respectively, inthirdquarter2025, reflecting
investments andinitiatives to
support long-term growth, partially offset by operating efficiencies.
The debt-to-capitalization ratio was 41.8% at September 30, 2026 compared
• to 44.9% at September 30, 2025 and 43.0% at December 31, 2025.
──────────────────────────────────────────────────────────────────────────────
• Year to date through November 4, 2026, the Company repurchased 1.8
million shares of common stock for approximately $500 million.
3 CUSTOMER RELATIONSHIPS The following table summarizes The Cigna Group’s
medical customers and overall customer relationships: Customer Relationships (in
thousands):
As of
the
Perio…
Ended
Septe… June Decemb…
30, 30, 31,
2026 2025 2026 2025
Total
Phar… 117,6… 122,4… 118,2… 123,6…
Cust…
U.S. 16,699 16,352 16,678 16,423
Heal…
Inte… 1,753 1,707 1,735 1,695
Heal…
Total
Medi… 18,452 18,059 18,413 18,118
Cust…
Beha… 23,012 23,526 27,621 28,269
Care
Dent… 18,400 18,419 18,488 18,438
Total
Cust… 177,5… 182,4… 182,7… 188,4…
Rela…
Total customer relationships atSeptember 30, 2026decreased 6%
fromDecember 31, 2025to177.6million, due to lower pharmacy and behavioral
• customers.
──────────────────────────────────────────────────────────────────────────────
Total pharmacy customers atSeptember 30, 2026decreased5%fromDecember 31,
2025to117.7million, reflecting expected client transitions and lower
• membership from health plan clients.
──────────────────────────────────────────────────────────────────────────────
Total behavioral customers at September 30, 2026 decreased 19% from
December 31, 2025 to 23 million, due to the termination of a government
contract,with minimal impact to The Cigna Group’s revenues and adjusted
• income from operations.
──────────────────────────────────────────────────────────────────────────────
Total medical customers5atSeptember 30, 2026increased2%fromDecember 31,
2025to18.5 million, reflecting growth in
Middle and Select markets, partially offset by lower membership in
• National Accounts.
──────────────────────────────────────────────────────────────────────────────
4 HIGHLIGHTS OF SEGMENT RESULTS See Exhibit 1 for a reconciliation of adjusted
income from operations 1to shareholders’ net income. Evernorth Health Services
This segment includes the Pharmacy Benefit Services and Specialty and Care
Services operating segments, which provide independent and coordinated health
solutions and capabilities to enable the health care system to work better and
help people live healthier lives. Pharmacy Benefit Services drives high-quality,
cost-effective pharmacy care through various services such as drug claim
adjudication, retail pharmacy network administration, benefit design
consultation, drug utilization review, drug formulary management and access to
our home delivery pharmacy. Specialty and Care Services provides specialty drugs
for the treatment of complex and rare diseases, specialty distribution of
pharmaceuticals and medical supplies, as well as clinical programs to help our
clients drive better whole-person health outcomes through care services.
Fin…
Res…
(do… Three Nine
in Mont… Mon…
mil… Ended End…
Tot… Sept… June Sep…
Adj… 30, 30, 30,
Rev… 2026 2025 2026 2026
──────────────────────────────────────────────────────────────────────────────
Pha…
Ben… $ 37,… $ 34,0… $ 34,4… $ 104,…
Ser…
Spe…
and $ 26,… $ 26,3… $ 26,9… $ 78,9…
Care
Ser…
Adj… $ 63,… $ 60,3… $ 61,4… $ 183,…
Rev…
Adj…
Inc…
from
Ope…
Pre…
Pha…
Ben… $ 765 $ 975 $ 609 $ 1,768
Ser…
Spe…
and $ 1,0… $ 928 $ 1,054 $ 3,190
Care
Ser…
Adj…
Inc…
from $ 1,8… $ 1,903 $ 1,663 $ 4,958
Ope…
Pre…
Mar… 2.9 % 3.2 % 2.7 % 2.7 %
Pre…
Evernorth Health Servicesthirdquarter2026adjusted revenues3increased6%
• and adjusted income from operations, pre-tax1, decreased4%, relative
tothirdquarter2025.
• For Pharmacy Benefit Servicesthirdquarter2026relative tothirdquarter2025:
◦ Adjusted revenues3increased9%, primarily due to drug mix.
Adjusted income from operations, pre-tax1, decreased22%,primarily
◦ reflecting large client contract renewals and strategic investments,
consistent with prior commentary.
• For Specialty and Care Servicesthirdquarter2026relative
tothirdquarter2025:
Adjusted revenues3increased1%, reflecting strong specialty distribution
◦ revenue growth, partially offset by
lower specialty pharmacy revenue,reflecting higher biosimilar and
specialty generic adoption, which lowers costs for clients and patients.
Adjusted income from operations, pre-tax1, increased15%, primarily
◦ reflecting strong organic growth in specialty
businesses, including higher biosimilar and specialty generic adoption.
5 Cigna Healthcare This segment includes the U.S. Healthcare and International
Health operating segments, which provide comprehensive medical and coordinated
solutions to clients and customers. U.S. Healthcare provides medical plans and
other benefits and solutions for insured and self-insured clients as well as
individual and family plan customers. International Health provides health care
solutions in our international markets, as well as health solutions for globally
mobile individuals and employees of multinational organizations. In April 2026,
the Company announced its planned exit from the Individual and Family Plans
medical business as of January 1, 2027.
Fin…
Res…
(do…
in
mil…
Three Nine
Mont… Mon…
Ended End…
Sept… June Sep…
30, 30, 30,
2026 2025 2026 2026
Adj… $ 11,… $ 10,7… $ 11,7… $ 34,9…
Rev…
Adj…
Inc…
from $ 1,1… $ 1,038 $ 1,276 $ 3,983
Ope…
Pre…
Mar… 10.2 % 9.7 % 10.9 % 11.4 %
Pre…
Thirdquarter2026adjusted revenues3increased9%relative tothirdquarter2025,
• primarily reflecting premium rate increases to cover expectedincreasesin
medical costs.
Third quarter 2026 adjusted income from operations, pre-tax1, increased
• 15% relative to third quarter 2025, primarily due to higher net
investment income and improved operating efficiency.
The Cigna Healthcare MCR4was85.0%forthirdquarter2026, compared
• to84.8%forthirdquarter2025, primarily due to U.S. Employer business mix,
partially offset bya lower MCR4within our Individual and Family Plans
business.
Cigna Healthcarenet medical costs payable8was $4.86 billionatSeptember
30, 2026,$5.09 billionatJune 30, 2026, and$4.53 billionatSeptember 30,
• 2025.Favorableprior year reserve development on a gross pre-tax basis
was$356million and$319million forthe nine months ended September 30,
2026and2025, respectively.
Corporate and Other Operations Corporate reflects interest expense, amounts not
allocated to operating segments and includes intersegment eliminations. Other
Operations is comprised of Corporate Owned Life Insurance (“COLI”), the
Company’s run-off operations and other non-strategic businesses.
Fin…
Res…
(do…
in
mil…
Three Nine
Mont… Mont…
Ended Ended
Sept… June Sept…
30, 30, 30,
2026 2025 2026 2026
Adj…
(Lo…
from $ (372 ) $ (363 ) $ (389 ) $ (1,1… )
Ope…
Pre…
6 2026OUTLOOK 2 The Cigna Group’s outlook for full year 2026consolidated
adjusted income from operations 1,2is at least $30.60 per share 2. This outlook
includes the impact of expected future share repurchases and anticipated
2026dividends.
(dollars in millions,
except where noted and per Projection for Full Year
share amounts) Ending Change from Prior
2026 Consolidated Metrics December 31, 2026 Projection
──────────────────────────────────────────────────────────────────────────────
Adjusted Income from at least $30.60 +$0.15
Operations, per share1,2
Evernorth Adjusted Income
from Operations, at least $6,900
Pre-Tax1,2
Cigna Healthcare Adjusted
Income from Operations, at least $4,600 +$50
Pre-Tax1,2
Cigna Healthcare Medical 84.2% +/- 25 bps Narrowed by 50 bps
Care Ratio2,4
7 The foregoing statements represent the Company’s current estimates of The
Cigna Group’s 2026consolidated and segment adjusted income from operations
1,2and other key metrics as of the date of this release. Actual results may
differ materially depending on a number of factors. Investors are urged to read
the Cautionary Note Regarding Forward-Looking Statements included in this
release. Management does not assume any obligation to update these estimates.
This quarterly earnings release and the Quarterly Financial Supplement are
available on The Cigna Group’s website in the Investor Relations section (
https://investors.thecignagroup.com/overview/default.aspx). Management will be
hosting a conference call to review third quarter 2026results and discuss full
year 2026outlook beginning today at 8:30 a.m. ET. A link to the conference call
is available in the Investor Relations section of The Cigna Group’s website
located at https://investors.thecignagroup.com/events-and-
presentations/default.aspx. The call-in numbers for the conference call are as
follows: Live Call (888) 566-1889 (Domestic) (773) 799-3989 (International)
Passcode: 11052026 Replay (866) 405-7290 (Domestic) (203) 369-0603
(International) It is strongly suggested you dial in to the conference call by
8:15 a.m. ET. About The Cigna Group The Cigna Group (NYSE: CI) is a global
health company committed to creating a better future built on the vitality of
every individual and every community. We relentlessly challenge ourselves to
partner and innovate solutions for better health. The Cigna Group includes
products and services marketed under Evernorth Health Services, Cigna
Healthcare, or its subsidiaries. The Cigna Group maintains sales capabilities in
more than 30 markets and jurisdictions, and has approximately 180 million
customer relationships around the world. Learn more at thecignagroup.com .
Notes:
Adjusted income (loss) from operations is a principal financial measure
of profitability used by The Cigna Group’s management because it
presents the underlying results of operations of the Company’s
businesses and facilitates analysis of trends in underlying revenue,
expenses and shareholders’ net income. Adjusted income (loss) from
operations is defined as shareholders’
net income (or income before income taxes less pre-tax income (loss)
attributable to noncontrolling interests for the segment metric)
excluding net investment gains/losses, amortization of acquired
intangible assets and special items. The
Cigna Group’s share of certain investment results of its joint ventures
1. reported in the Cigna Healthcare segment using the equity method of
accounting are also excluded. Special items are matters that management
believes are not
representative of the underlying results of normal, recurring operations
due to their nature or size. Adjusted income (loss) from operations is
measured on an after-tax basis for consolidated results and on a pre-tax
basis for segment
results. Consolidated adjusted income (loss) from operations is not
determined in accordance with GAAP and should not be viewed as a
substitute for the most directly comparable GAAP measure, shareholders’
net income. See Exhibit 1 for a
reconciliation of consolidated adjusted income from operations to
shareholders’ net income.
8
Management is not able to provide a reconciliation of adjusted income
from operations to shareholders’ net income on a forward-looking basis
because it is unable to predict,
without unreasonable effort, certain components thereof including (i)
2. future net investment results and (ii) future special items. These items
are inherently uncertain and depend on various factors, many of which
are beyond The Cigna Group’s
control. As such, any associated estimate and its impact on
shareholders’ net income and total revenues could vary materially.
The Company’s outlook excludes the potential effects of any other business
combinations that may occur after the date of this earnings release. The
Company’s outlook includes the potential effects of expected future share
repurchases and anticipated 2026 dividends. The timing and actual number of
shares repurchased will depend on a variety of factors, including price, general
business and market conditions, and alternate uses of capital. The share
repurchase program may be effected through open market purchases in compliance
with Rule 10b-18 under the Securities Exchange Act of 1934, as amended,
including through Rule 10b5-1 trading plans, or privately negotiated
transactions. The program may be suspended or discontinued at any time.
Adjusted revenues is used by The Cigna Group’s management because it
facilitates analysis of trends in underlying revenue. The Company
defines adjusted revenues as total revenues
excluding the following adjustments: special items and The Cigna Group’s
share of certain investment results of its joint ventures reported in
the Cigna Healthcare segment using the equity method of accounting.
Special items are matters that
3. management believes are not representative of the underlying results of
normal, recurring operations due to their nature or size. We exclude
these items from this measure because management believes they are not
indicative of past or future
underlying performance of the business. Adjusted revenues is not
determined in accordance with GAAP and should not be viewed as a
substitute for the most directly comparable GAAP measure, total
revenues. See Exhibit 1 for a reconciliation of
consolidated adjusted revenues to total revenues.
4. Operating ratios are defined as follows:
TheCigna Healthcaremedical care ratio (“MCR”) represents medical costs as
a percentage of premiums for allCigna Healthcarerisk products provided
• through guaranteed cost or
experience-rated funding arrangements. Changes in percentages may be
expressed in basis points (“bps”).
SG&A expense ratio on a GAAP basis for thethirdquarter2026represents
enterprise selling, general and administrative expenses of$3,612
millionas a percentage of total revenue of$73.7 billionat a consolidated
• level. SG&A expense ratio on a GAAP basis for
thethirdquarter2025represents enterprise selling, general and
administrative expenses of$3,362 millionas a percentage of total revenue
of$69.7 billionat a consolidated level.
Adjusted SG&A expense ratio for thethirdquarter2026represents enterprise
selling, general and administrative expenses of$3,443 millionexcluding
special items of $169million as a percentage of adjusted revenue at a
• consolidated level. Adjusted SG&A expense ratio for
thethirdquarter2025represents enterprise selling, general and
administrative expenses of$3,191 millionexcluding special items of
$171million as a percentage of adjusted revenue at a consolidated level.
9
5. Customer relationships are defined as follows:
Total medical customers includes individuals who meet any one of the
following criteria: (i) are covered under a medical insurance policy,
managed care
• arrangement, or administrative services agreement issued by Cigna
Healthcare; (ii) have access to Cigna Healthcare’s provider network for
covered services under their medical plan; or (iii) have medical claims
that are administered by Cigna
Healthcare.
6. Margin, pre-tax, is calculated by dividing adjusted income (loss) from
operations, pre-tax by adjusted revenues for each segment.
The Cigna Group owns noncontrolling interests in certain operating joint
ventures. As such, the adjusted revenues for the Cigna Healthcare
7. segment only include the Company’s share
of the joint ventures’ earnings reported in Fees and Other Revenues
using the equity method of accounting under GAAP.
Medical costs payable within theCigna Healthcaresegment are presented
net of reinsurance and other
8. recoverables. The gross medical costs payable balance was$4.99 billionas
ofSeptember 30, 2026,$5.23 billionas ofJune 30, 2026, and$4.68 billionas
ofSeptember 30, 2025.
10 CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS This press release, and
oral statements made in connection with this release, may contain forward-
looking statements within the meaning of the Private Securities Litigation
Reform Act of 1995. Forward-looking statements are based on The Cigna Group’s
current expectations and projections about future trends, events and
uncertainties. These statements are not historical facts. Forward-looking
statements may include, among others, statements concerning our projected
outlook for 2026 (including adjusted income from operations, including on a per
share and segment basis, and medical care ratio); future financial or operating
performance, including our ability to improve the health and vitality of those
we serve; future growth, business strategy and strategic or operational
initiatives, including our modernization and productivity initiatives; our
ability to successfully implement actions across our business to strengthen our
platform and build a more sustainable model for healthcare; economic, regulatory
or competitive environments; financing or capital deployment plans and amounts
available for future deployment; our prospects for growth in the coming years;
and other statements regarding The Cigna Group’s future beliefs, expectations,
plans, intentions, liquidity, cash flows, financial condition or performance.
You may identify forward-looking statements by the use of words such as
“believe,” “expect,” “project,” “plan,” “intend,” “anticipate,” “estimate,”
“predict,” “potential,” “may,” “should,” “will” or other words or expressions of
similar meaning, although not all forward-looking statements contain such terms.
Forward-looking statements are subject to risks and uncertainties, both known
and unknown, that could cause actual results to differ materially from those
expressed or implied in forward-looking statements. Such risks and uncertainties
include, but are not limited to: our ability to manage health care costs and
respond to price competition, inflation and other pressures that could compress
our margins or result in premiums that are insufficient to cover the cost of
services delivered to our customers; our ability to compete effectively,
differentiate our products and services from those of our competitors and adapt
to changes in an evolving and rapidly changing industry; our ability to develop
and effectively implement products and services to improve the accessibility,
affordability and transparency of health care; changes in drug pricing or
industry pricing benchmarks; our ability to maintain relationships with one or
more key pharmaceutical manufacturers or if payments made or discounts provided
decline; changes in the pharmacy provider marketplace or pharmacy networks; the
potential for actual claims to exceed our estimates related to expected medical
claims; our ability to develop and maintain satisfactory relationships with
health care payors, physicians, hospitals, other health service providers and
with producers and consultants; potential liability in connection with managing
medical practices and operating pharmacies, onsite clinics and other types of
medical facilities; uncertainties surrounding participation in government-
sponsored programs and providing services to payors who participate in
government-sponsored programs; the substantial level of government regulation
over our business and the potential effects of new laws or regulations or
changes in existing laws or regulations; compliance with applicable privacy,
security and data laws, regulations and standards; the outcome of litigation,
regulatory audits and investigations; compliance costs and potential failure of
our prevention, detection and control systems; our ability to invest in and
properly maintain our information technology and other business systems; our
ability to prevent or contain effects of a potential cyberattack or other
privacy or data security incident; risks related to our use of artificial
intelligence and machine learning; dependence on success of relationships with
third parties; risk of significant disruption within our operations or among key
suppliers or third parties; political, legal, operational, regulatory, economic
and other risks that could affect our multinational operations, including
currency exchange rates; risks related to strategic transactions and realization
of the expected benefits of such transactions, as well as integration or
separation difficulties or underperformance relative to expectations which could
lead to an impairment charge; our ability to achieve our strategic and
operational initiatives; unfavorable economic and market conditions, the risk of
a recession or other economic downturn and resulting impact on employment
metrics, stock market or changes in interest rates; risks related to a downgrade
in financial strength ratings of our insurance subsidiaries; the impact of our
significant indebtedness and the potential for further indebtedness in the
future; credit risk related to our reinsurers; as well as more specific risks
and uncertainties discussed in our most recent report on Form 10-K and
subsequent reports on Forms 10-Q and 8-K available through the Investor
Relations section of www.thecignagroup.com. You should not place undue reliance
on forward-looking statements, which speak only as of the date they are made,
are not guarantees of future performance or results, and are subject to risks,
uncertainties and assumptions that are difficult to predict or quantify. The
Cigna Group undertakes no obligation to update or revise any forward-looking
statement, whether as a result of new information, future events or otherwise,
except as may be required by law.
THE CIGNA GROUP Exhibit 1
COMPARATIVE SUMMARY OF FINANCIAL RESULTS
(unaudited)
(…
in
m…
e… Th… Ni…
p… Mo… Mo… T…
s… En… En… M…
a… 30, 30, 3…
R… 20… 20… 20… 20… 2…
──────────────────────────────────────────────────────────────────────────────
P… $ 58… $ 56… $ 17… $ 15… $ 57…
r…
P… 9,… 9,… 29… 30… 9,…
F…
a… 4,… 4,… 13… 12… 4,…
o…
r…
N…
i… 287 233 761 707 272
i…
T… 73… 69… 21… 20… 71…
r…
N…
i…
r…
f… 110 (1… ) 23 (2… ) (1… )
c…
e…
m…
i…
A… $ 73… $ 69… $ 21… $ 20… $ 71…
r…
S…
n… $ 1,… $ 1,… $ 4,… $ 4,… $ 1,…
i…
P…
a…
i…
(…
f…
o…
by
s…
E…
H… $ 1,… $ 1,… $ 4,… $ 5,… $ 1,…
S…
C… 1,… 1,… 3,… 3,… 1,…
H…
C…
a… (3… ) (3… ) (1… ) (1… ) (3… )
O…
O…
A…
i… (5… ) (4… ) (1… ) (1… ) (4… )
t…
e…
C…
a…
a… $ 2,… $ 2,… $ 6,… $ 5,… $ 2,…
i…
f…
o…
W…
a…
s… 26… 26… 26… 26… 26…
(…
t…
C…
s…
o… 26… 26… 26…
(…
t…
S…
E…
at $ 43… $ 41…
S…
3…
S…
E…
P…
S… $ 16… $ 15…
at
S…
3…
──────────────────────────────────────────────────────────────────────────────
…
…
…
…
…
…
…
…
…
…
…
…
…
…
…
…
…
…
(1) Adjusted revenues is defined as total revenues excluding the following
adjustments: special items and The Cigna Group’s share of certain investment
results of its joint ventures reported in the Cigna Healthcare segment using the
equity method of accounting. These items are excluded because they are not
indicative of past or future underlying performance of our businesses. (2)
Includes Net investment gains/losses as presented in our Consolidated Statements
of Income, as well as the Company’s share of certain investment results of its
joint ventures reported in the Cigna Healthcare segment using the equity method
of accounting, which are presented within Fees and other revenues in our
Consolidated Statements of Income. (3) Adjusted income (loss) from operations is
defined as shareholders’ net income (or income before income taxes less pre-tax
income (loss) attributable to noncontrolling interests for the segment metric)
excluding the following adjustments: net investment gains/losses, amortization
of acquired intangible assets and special items. The Cigna Group’s share of
certain investment results of its joint ventures reported in the Cigna
Healthcare segment using the equity method of accounting are also excluded.