Cigna Group: Q3 FY2026 earnings call

What management said about Q3 FY2026, from the documents filed with the SEC on 5 November 2026: press release. Guidance figures: 2 raised, 2 new, 1 kept. The quarter’s numbers.

Read the filing

Key takeaways

• Adjusted earnings per share stable: Adjusted income from operations was $2.1 billion, or $7.98 per share, against $7.83 a year earlier. Shareholders’ net income was $5.47 per share against $6.98, reflecting last year's after-tax gain on sale. Source
• Revenue up 6% to $73.7 billion: Total revenues rose 6% to $73.7 billion, with growth in both Evernorth Health Services and Cigna Healthcare. Nine-month total revenues were $213.8 billion. Source
• Evernorth profit down 4%: Evernorth adjusted revenues rose 6% to $63.8 billion. Adjusted pre-tax income fell 4% to $1.83 billion, a 2.9% pre-tax margin. Source
• Cigna Healthcare pre-tax up 15%: Adjusted revenues rose 9% to $11.7 billion on premium rate increases. Pre-tax income rose 15% to $1.19 billion, a 10.2% margin, on higher net investment income and efficiency. Source
• Medical care ratio rose to 85.0%: The Cigna Healthcare medical care ratio was 85.0%, against 84.8% a year earlier. Management cited U.S. Employer business mix, partly offset by a lower ratio in Individual and Family Plans. Source
• Favorable prior-year reserve development: Gross pre-tax favorable prior-year reserve development was $356 million for the nine months, against $319 million a year earlier. Source
• Total customer relationships down 6%: Customer relationships stood at 177.6 million at September 30, 2026, down from 188.4 million at year-end 2025, due to lower pharmacy and behavioral customers. Source

“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,”

Brian Evanko, President and Chief Executive Officer of The Cigna Group

Guidance

What changed from last quarter

• Guidance raised: Full-year adjusted income per share guidance raised to at least $30.60 from at least $30.45. Source
• Guidance raised: Full-year Cigna Healthcare adjusted pre-tax income guidance raised by $50 million to at least $4,600 million. Source
• New guidance: Long-term financial targets introduced at the 2026 Investor Day, including adjusted EPS growth and cumulative operating cash flow through 2030. Source
• New: Lead to One vision introduced at the 2026 Investor Day. Source
• New: Accelerate to One announced as a multi-year, $3 billion modernization and productivity initiative. Source

Results and growth drivers

• Adjusted earnings per share stable: Adjusted income from operations was $2.1 billion, or $7.98 per share, against $7.83 a year earlier. Shareholders’ net income was $5.47 per share against $6.98, reflecting last year's after-tax gain on sale. Source
• Revenue up 6% to $73.7 billion: Total revenues rose 6% to $73.7 billion, with growth in both Evernorth Health Services and Cigna Healthcare. Nine-month total revenues were $213.8 billion. Source
• Segment growth offset by pharmacy: Adjusted income was stable, with growth in Cigna Healthcare and Specialty and Care Services partly offset by lower Pharmacy Benefit Services contribution. Source

Segments and business lines

• Evernorth profit down 4%: Evernorth adjusted revenues rose 6% to $63.8 billion. Adjusted pre-tax income fell 4% to $1.83 billion, a 2.9% pre-tax margin. Source
• Pharmacy Benefit Services profit down 22%: Adjusted revenues rose 9%, mainly on drug mix. Pre-tax income fell 22%, which management tied to large client contract renewals and strategic investments. Source
• Specialty and Care profit up 15%: Adjusted revenues rose 1%, with specialty distribution growth offset by lower specialty pharmacy revenue. Pre-tax income rose 15% on organic growth in specialty businesses. Source
• Cigna Healthcare pre-tax up 15%: Adjusted revenues rose 9% to $11.7 billion on premium rate increases. Pre-tax income rose 15% to $1.19 billion, a 10.2% margin, on higher net investment income and efficiency. Source

“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,”

Brian Evanko, President and Chief Executive Officer of The Cigna Group

Medical costs and reserves

• Medical care ratio rose to 85.0%: The Cigna Healthcare medical care ratio was 85.0%, against 84.8% a year earlier. Management cited U.S. Employer business mix, partly offset by a lower ratio in Individual and Family Plans. Source
• Favorable prior-year reserve development: Gross pre-tax favorable prior-year reserve development was $356 million for the nine months, against $319 million a year earlier. Source
• Medical costs payable declined from June: Net medical costs payable were $4.86 billion, down from $5.09 billion at June 30 and up from $4.53 billion a year earlier. Source

Operating costs and tax

• SG&A ratio rose 0.1 point: The GAAP SG&A expense ratio was 4.9%, against 4.8%, and the adjusted ratio was 4.7%, against 4.6%. Management tied the increase to investments and initiatives for long-term growth. Source
• Corporate and Other pre-tax loss: Adjusted pre-tax loss from Corporate and Other Operations was $372 million, compared with $363 million in third quarter 2025. Source
• Adjusted income tax expense rose: Adjusted income tax expense was $546 million, compared with $482 million a year earlier. Source

Customers and membership

• Total customer relationships down 6%: Customer relationships stood at 177.6 million at September 30, 2026, down from 188.4 million at year-end 2025, due to lower pharmacy and behavioral customers. Source
• Pharmacy customers down 5%: Pharmacy customers were 117.7 million, reflecting expected client transitions and lower health plan client membership. Source
• Behavioral customers down 19%: Behavioral customers fell to 23 million after a government contract was terminated, with minimal effect on revenues and adjusted income. Source
• Medical customers up 2%: Medical customers rose to 18.5 million, with growth in Middle and Select markets partly offset by lower National Accounts membership. Source

Capital, cash and shareholder returns

• Debt-to-capitalization down to 41.8%: Debt-to-capitalization was 41.8%, compared with 44.9% a year earlier and 43.0% at December 31, 2025. Source
• Share repurchases of $500 million: Through November 4, 2026, the company repurchased 1.8 million shares for about $500 million. Through July 29, 2026, it had bought 0.9 million shares for about $250 million. Source
• Weighted share count lower: Weighted average shares were 263.8 million in the quarter, against 267.5 million a year earlier. Common shares outstanding were 263.4 million. Source
• Shareholders' equity per share up: Shareholders’ equity per share was $164.70 at September 30, compared with $156.53 a year earlier. Source

Strategy and leadership

• Three priorities for next chapter: CEO Brian Evanko set out three priorities for the company's next chapter: core growth, distinct capabilities, and disciplined execution. Source
• Investor Day introduced Lead to One: The 2026 Investor Day introduced the Lead to One vision and set long-term financial targets, listed under guidance. Source
• Accelerate to One tied to productivity: Management linked Accelerate to One to productivity and cost reduction, with the aim of supporting long-term earnings growth. Source
• CEO Brian Evanko spoke on strategy: The CEO described the quarter's results as evidence of building on momentum from the strategy. Source

Coming up, as management said on 5 November 2026

• Individual and Family Plans exit: The planned exit from the Individual and Family Plans medical business takes effect January 1, 2027. Source

Figures management reported

Risks management discussed

• Financial: Management cited large client contract renewals and strategic investments as reasons for the decline in Pharmacy Benefit Services pre-tax income. Source
• Financial: Management attributed the higher Cigna Healthcare medical care ratio to U.S. Employer business mix. Source
• Demand: Management pointed to expected client transitions and lower health plan membership in pharmacy customers. Source
• External: Higher biosimilar and specialty generic adoption lowered specialty pharmacy revenue, which management said lowers costs for clients and patients. Source

Earlier plans management reported on

• Not stated: The prior quarter described pharmacy benefit profit pressure from client and customer initiatives as consistent with prior commentary; the release gives no status for that commentary.

Other quarters

• Q2 FY2026 earnings call
• Q1 FY2026 earnings call
• Q4 FY2025 earnings call
• Q3 FY2025 results

Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.