10-Q · April 30, 2026
Cigna Group reported Q1 2026 revenues of $68.5 billion, surpassing analysts' expectations of $66.31 billion, while EPS was slightly lower at $6.26 compared to the expected $7.61. The company increased its outlook for…
Earnings analysis · 10-Q
CI earnings analysis
Filed November 5, 2026 · Our reading of the company's report
The latest report
Cigna delivered 6% revenue growth and a 2% increase in adjusted diluted EPS to $7.98, led by strong Cigna Healthcare and Specialty and Care Services performance. However, GAAP EPS fell to $5.47, Evernorth profitability…
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Cigna delivered 6% revenue growth and a 2% increase in adjusted diluted EPS to $7.98, led by strong Cigna Healthcare and Specialty and Care Services performance. However, GAAP EPS fell to $5.47, Evernorth profitability declined 4% and Pharmacy Benefit Services income dropped 22%, highlighting ongoing PBM and client-retention pressure. Liquidity and leverage improved, while operating cash flow remained positive but declined year over year.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $5.47
- Operating margin
- 3.3%
What stood out
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Revenue and adjusted EPS grew
Total revenue increased 6% year over year to $73.683 billion from $69.748 billion. Adjusted diluted EPS increased 2% to $7.98 from $7.83, although GAAP diluted EPS declined 22% to $5.47 from $6.98.
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Cigna Healthcare delivered strong growth
Cigna Healthcare adjusted revenue rose 9% to $11.708 billion, while pre-tax adjusted income increased 15% to $1.193 billion. Its pre-tax margin expanded to 10.2% from 9.7%, and its SG&A ratio improved to 19.6% from 19.9%.
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Specialty offset pharmacy pressure
Specialty and Care Services pre-tax adjusted income increased 15% to $1.064 billion on 1% revenue growth to $26.498 billion, supported by 6% growth from the business and 3% from operating efficiencies.
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Cash generation remained positive
Nine-month operating cash flow was $3.281 billion versus $3.452 billion in the prior-year period. Capital expenditures were $0.8 billion versus $0.9 billion, implying approximately $2.481 billion of year-to-date operating cash flow less capex.
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Liquidity and funding capacity remain strong
Liquidity remained substantial, with $6.5 billion of cash and short-term investments, $6.5 billion of undrawn revolving credit capacity and $6.0 billion of remaining commercial-paper capacity as of September 30, 2026.
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Leverage and buyback spending moderated
The debt-to-capitalization ratio improved to 41.8% from 43.0% at December 31, 2025. Share repurchases were $500 million for 1.8 million shares in the first nine months, versus $2.6 billion for 8.2 million shares in the prior-year period.
What to watch
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PBM profitability contracted
Pharmacy Benefit Services pre-tax adjusted income declined 22% to $765 million despite 9% revenue growth to $37.276 billion. Management attributed pressure to client- and customer-focused initiatives, which had a negative 13% impact in the quarter.
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Evernorth margin pressure persists
Pharmacy claim volume fell 2% to 546 million claims from 558 million. Evernorth's overall pre-tax adjusted income declined 4% to $1.829 billion, and its pre-tax margin compressed to 2.9% from 3.2%.
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Medical cost pressure increased
Cigna Healthcare's medical care ratio increased 20 basis points to 85.0% from 84.8%, primarily due to an 80-basis-point increase in the U.S. Employer business. Unpaid claims and claim expenses rose to $4.988 billion from $4.241 billion at December 31, 2025.
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GAAP earnings declined materially
Shareholders' net income fell 23% to $1.442 billion from $1.868 billion, while the effective tax rate rose to 19.1% from 14.0%. The quarter also included $589 million of amortization of acquired intangible assets versus $436 million previously.
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Operating cash flow declined
Operating cash flow decreased to $3.281 billion from $3.452 billion for the first nine months. Management cited an unfavorable Inflation Reduction Act cash-flow impact and lower insurance liabilities, partly offset by accounts receivable timing and lower inventory purchases.
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No new risk factors, but credit exposure remains
The filing states that the company’s risk factors remain those disclosed in the 2025 Form 10-K and identifies no material change in market-risk exposure. Separately, commercial mortgage loans totaled $1.2 billion, with approximately 26% exposure to office properties, where future losses remain possible.
Management's outlook
The 10-Q does not provide new quantitative company guidance. The filing discusses forward-looking initiatives, including Accelerate to One, but does not quantify expected revenue or EPS outcomes; the previously reported 2026 outlook was disclosed in the earnings release/8-K.
Earlier filings 4
10-K · February 26, 2026
Cigna Group (The Cigna Group) delivered strong top-line growth in 2025 with consolidated revenue increasing to $273.85 billion (sum of quarterly revenues) and sustained free cash generation (FY2025 FCF $8.39 billion).…
10-K · February 27, 2025
The 10-K frames The Cigna Group around two disciplined growth platforms — Evernorth Health Services and Cigna Healthcare — that the company uses to drive cross-enterprise leverage. The filing highlights scale…
10-Q · November 3, 2022
Cigna reported Q3 revenue of $45,280 million, up $992 million versus the prior-year quarter, and diluted EPS of $8.97 versus $4.80 a year ago. Results include a $1,735 million pre-tax gain on the July 1 divestiture…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.