Overview
Cigna on Thursday raised its full-year adjusted profit forecast for 2026 after producing second-quarter results that topped analysts' expectations. The upside was powered by stronger-than-expected performance in the companys Evernorth Health Services segment, which houses its pharmacy benefit management (PBM) operations and specialty pharmacy.
Evernorth performance and drivers
Adjusted revenue at Evernorth rose 6% in the quarter to $61.47 billion. The company attributed part of that growth to increased utilization of specialty medications used to treat complex conditions such as cancer, multiple sclerosis and rheumatoid arthritis. PBMs work on behalf of employers and health plan clients to negotiate drug prices and coverage arrangements with manufacturers, and Evernorth's scale in those activities contributed materially to the quarters top-line surprise.
Quarterly results and guidance
On an adjusted basis, Cigna reported earnings of $7.78 per share for the second quarter, above consensus of $7.60 per share. Total revenue for the quarter increased 7% to $71.67 billion, versus analysts' estimates of $70.34 billion. Following the stronger results, the company raised its 2026 adjusted profit forecast by $0.10 to at least $30.45 per share. Market analysts were, on average, modeling annual earnings of $30.41 per share.
Cost trends and underwriting metrics
Cigna's medical loss ratio - the share of premiums paid out for medical care - widened to 84.5% in the quarter, up from 83.2% a year earlier. That outcome was slightly higher than the 84.46% that analysts were expecting, according to data compiled by LSEG. The company noted that the prior-year quarter had benefited from elevated risk-adjustment payments in its individual and family plans business; such payments compensate plans that cover a disproportionately sicker population.
Strategic positioning - retreat from government-backed books
In response to elevated medical costs, Cigna has been trimming its exposure to government-backed health insurance markets. The company exited Medicare Advantage last year and has announced it will cease offering plans under the Affordable Care Act at the end of 2026. Management has signaled a reallocation of focus toward its core traditional employer-sponsored healthcare business and its PBM operations.
Implications
The quarter shows a business mix shifting toward pharmacy and specialty drug services, which supported revenue and profitability in the near term. At the same time, the higher medical loss ratio highlights ongoing cost pressures in medical care, which remain a key underwriting and margin consideration for the insurer.
This report presents the companys results, specific segment figures and stated guidance. It does not add information beyond the numbers and comments provided by the company and data cited in the quarters reporting.