The Cigna Group Reports Strong Second Quarter 2026 Results, Raises 2026 Outlook
Rhea-AI Summary
The Cigna Group (NYSE: CI) reported second quarter 2026 total revenues of $71.7 billion, up 7% year over year. Shareholders' net income was $1.7 billion, or $6.29 per share, compared with $1.5 billion, or $5.71 per share, primarily driven by growth in Cigna Healthcare.
Adjusted income from operations was $2.1 billion, or $7.78 per share, up 6% from $1.9 billion, or $7.20 per share. Adjusted revenues reached $71.6 billion. The SG&A and adjusted SG&A expense ratios fell to 4.8% and 4.6%, reflecting improved operating efficiency. Year to date, the company repurchased 0.9 million shares for approximately $250 million.
Evernorth Health Services adjusted revenues rose 6% to $61.5 billion, while adjusted pre-tax income declined 2%. Cigna Healthcare adjusted revenues increased 9% to $11.7 billion and adjusted pre-tax income rose 17%, with a pre-tax margin of 10.9%. Total customer relationships decreased 3% since December 31, 2025, to 182.8 million, as pharmacy customers fell 4%, partly offset by a 2% increase in medical customers to 18.4 million.
For full year 2026, The Cigna Group raised its outlook for adjusted income from operations to at least $30.45 per share, a $0.10 increase. The outlook includes at least $6.9 billion in Evernorth pre-tax adjusted income from operations and at least $4.55 billion from Cigna Healthcare, with a projected medical care ratio of 83.7%–84.7%.
Positive
- Total revenues up 7% to $71.7 billion in Q2 2026
- Adjusted income from operations up 6% to $2.1 billion; EPS $7.78
- Cigna Healthcare adjusted revenues up 9% to $11.7 billion
- Cigna Healthcare adjusted pre-tax income up 17% to $1.3 billion; 10.9% margin
- SG&A and adjusted SG&A ratios reduced to 4.8% and 4.6%
- 2026 adjusted EPS outlook raised to at least $30.45 (+$0.10)
Negative
- Evernorth pre-tax adjusted income down 2% year over year in Q2 2026
- Pharmacy Benefit Services pre-tax income down 27% despite 8% revenue growth
- Total customer relationships down 3% since December 31, 2025 to 182.8 million
- Total pharmacy customers down 4% to 118.2 million versus December 31, 2025
- Cigna Healthcare medical care ratio increased to 84.5% from 83.2% year over year
- Corporate and Other adjusted pre-tax loss widened to $389 million from $357 million
News Explained
Cigna has scheduled its Individual and Family Plans exit for January 1, 2027; the release does not describe it as completed.
The Cigna Group says it plans to exit its Individual and Family Plans medical business as of
The wording describes a scheduled future exit rather than a change reported as completed.
Separately, Cigna Healthcare reported net medical costs payable of
The specific milestone for the planned business change is
Key Figures
Previous Earnings Reports
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| Jul 07 | Earnings release details | Neutral | +1.6% | Second-quarter 2026 earnings release timing and conference-call details were announced |
| Apr 30 | First-quarter earnings | Positive | -0.6% | First-quarter revenue, earnings and raised full-year outlook were reported |
| Apr 02 | Earnings release details | Neutral | +1.0% | First-quarter 2026 earnings release schedule and conference call were announced |
| Jan 13 | Fourth-quarter release details | Neutral | -1.5% | Fourth-quarter 2025 results timing, call details and webcast availability were announced |
| Oct 30 | Third-quarter earnings | Positive | -17.4% | Third-quarter revenue, earnings and reaffirmed annual outlook were reported |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Tag-specific earnings events averaged a -3.37% 24-hour reaction, with positive earnings releases previously showing divergent price responses.
Key Terms
adjusted income from operations financial
medical care ratio financial
sg&a expense ratio financial
rule 10b-18 regulatory
AI-generated analysis. How Rhea-AI works. Not financial advice.
- Total revenues for the second quarter 2026 increased
7% to$71.7 billion - Shareholders' net income for the second quarter 2026 was
$1.7 billion $6.29 - Adjusted income from operations1 for the second quarter 2026 was
$2.1 billion $7.78 - 2026 outlook2 for adjusted income from operations1,2 increased to at least
$30.45
"Our purpose is to improve the lives of each and every customer and patient we serve," said Brian C. Evanko, President and Chief Executive Officer of The Cigna Group. "By harnessing technology, data and AI to deliver more personalized experiences, improve access and lower costs, we are creating greater value every day. Our strong second quarter results reflect continued progress against these priorities and demonstrate the effectiveness of our strategy and execution."
Shareholders' net income for second quarter 2026 was
The Cigna Group's adjusted income from operations1 for second quarter 2026 was
A reconciliation of shareholders' net income to adjusted income from operations1 is provided on the following page and on Exhibit 1 of this earnings release.
CONSOLIDATED HIGHLIGHTS
The following table includes highlights of results and reconciliations of total revenues to adjusted revenues3 and shareholders' net income to adjusted income from operations1:
Consolidated Financial Results (unaudited, dollars in millions): | ||||
Three Months Ended | Six Months | |||
June 30, | March 31, | June 30, | ||
2026 | 2025 | 2026 | 2026 | |
Total Revenues | $ 71,668 | $ 67,178 | $ 68,494 | $ 140,162 |
Net Investment Results from Equity Method Investments3 | (110) | (44) | 23 | (87) |
Adjusted Revenues3 | $ 71,558 | $ 67,134 | $ 68,517 | $ 140,075 |
Consolidated Earnings, net of taxes | ||||
Shareholders' Net Income | $ 1,660 | $ 1,532 | $ 1,654 | $ 3,314 |
Net Investment (Gains)1 | (55) | (103) | (233) | (288) |
Amortization of Acquired Intangible Assets1 | 296 | 330 | 315 | 611 |
Special Items1 | 153 | 171 | 322 | 475 |
Adjusted Income from Operations1 | $ 2,054 | $ 1,930 | $ 2,058 | $ 4,112 |
Shareholders' Net Income, per share | $ 6.29 | $ 5.71 | $ 6.26 | $ 12.55 |
Adjusted Income from Operations1, per share | $ 7.78 | $ 7.20 | $ 7.79 | $ 15.58 |
- Total revenues for second quarter 2026 increased
7% relative to second quarter 2025, driven by growth in both Evernorth Health Services and Cigna Healthcare. - Adjusted income from operations1 for second quarter 2026 increased
6% relative to second quarter 2025, driven by higher contributions from Cigna Healthcare. - The SG&A expense ratio4 and adjusted SG&A expense ratio4 were
4.8% and4.6% for second quarter 2026, compared to5.1% and4.9% , respectively, in second quarter 2025, primarily reflecting operating efficiency. - Year to date through July 29, 2026, the company repurchased 0.9 million shares of common stock for approximately
$250 million
CUSTOMER RELATIONSHIPS
The following table summarizes The Cigna Group's medical customers and overall customer relationships:
Customer Relationships (in thousands): | ||||
As of the Periods Ended | ||||
June 30, | March 31, | December 31, | ||
2026 | 2025 | 2026 | 2025 | |
Total Pharmacy Customers | 118,243 | 121,892 | 121,020 | 123,603 |
16,678 | 16,355 | 16,623 | 16,423 | |
International Health | 1,735 | 1,691 | 1,711 | 1,695 |
Total Medical Customers5 | 18,413 | 18,046 | 18,334 | 18,118 |
Behavioral Care | 27,621 | 23,852 | 27,558 | 28,269 |
Dental | 18,488 | 18,446 | 18,558 | 18,438 |
Total Customer Relationships | 182,765 | 182,236 | 185,470 | 188,428 |
- Total customer relationships at June 30, 2026 decreased
3% from December 31, 2025 to 182.8 million. - Total pharmacy customers at June 30, 2026 decreased
4% from December 31, 2025 to 118.2 million, reflecting expected client transitions and lower membership from health plan clients. - Total medical customers5 at June 30, 2026 increased
2% from December 31, 2025 to 18.4 million reflecting growth in Middle and Select markets, partially offset by lower membership in National Accounts.
HIGHLIGHTS OF SEGMENT RESULTS
See Exhibit 1 for a reconciliation of adjusted income from operations1 to 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.
Financial Results (dollars in millions): | ||||
Three Months Ended | Six Months | |||
June 30, | March 31, | June 30, | ||
2026 | 2025 | 2026 | 2026 | |
Total Adjusted Revenues | ||||
Pharmacy Benefit Services | $ 34,496 | $ 31,954 | $ 33,002 | $ 67,498 |
Specialty and Care Services | $ 26,972 | $ 25,871 | $ 25,440 | $ 52,412 |
Adjusted Revenues3 | $ 61,468 | $ 57,825 | $ 58,442 | $ 119,910 |
Adjusted Income from Operations, Pre-Tax | ||||
Pharmacy Benefit Services | $ 609 | $ 833 | $ 394 | $ 1,003 |
Specialty and Care Services | $ 1,054 | $ 863 | $ 1,072 | $ 2,126 |
Adjusted Income from Operations, Pre-Tax1 | $ 1,663 | $ 1,696 | $ 1,466 | $ 3,129 |
Margin, Pre-Tax6 | 2.7 % | 2.9 % | 2.5 % | 2.6 % |
- Evernorth Health Services second quarter 2026 adjusted revenues3 increased
6% and adjusted income from operations, pre-tax1, decreased2% , relative to second quarter 2025. - For Pharmacy Benefit Services second quarter 2026 relative to second quarter 2025:
- Adjusted revenues3 increased
8% primarily due to drug mix. - Adjusted income from operations, pre-tax1, decreased
27% , primarily reflecting client-focused initiatives, including large client contract renewals, and customer-focused initiatives, consistent with prior commentary.
- Adjusted revenues3 increased
- For Specialty and Care Services second quarter 2026 relative to second quarter 2025:
- Adjusted revenues3 increased
4% reflecting strong specialty volume growth. - Adjusted income from operations, pre-tax1, increased
22% primarily reflecting strong organic growth in specialty businesses, including higher generic and biosimilar adoption which benefits clients and patients by delivering lower costs, and operating efficiencies.
- Adjusted revenues3 increased
Cigna Healthcare
This segment includes the
Financial Results (dollars in millions): | ||||
Three Months Ended | Six Months | |||
June 30, | March 31, | June 30, | ||
2026 | 2025 | 2026 | 2026 | |
Adjusted Revenues3,7 | $ 11,728 | $ 10,754 | $ 11,477 | $ 23,205 |
Adjusted Income from Operations, Pre-Tax1 | $ 1,276 | $ 1,094 | $ 1,514 | $ 2,790 |
Margin, Pre-Tax6 | 10.9 % | 10.2 % | 13.2 % | 12.0 % |
- Second quarter 2026 adjusted revenues3 increased
9% relative to second quarter 2025, primarily reflecting premium rate increases to cover expected increases in medical costs. - Second quarter 2026 adjusted income from operations, pre-tax1, increased
17% relative to second quarter 2025, primarily due to an improved margin within ourU.S . Employer business. - The Cigna Healthcare MCR4 was
84.5% for second quarter 2026, compared to83.2% for second quarter 2025, primarily reflecting higher prior year risk adjustment benefits within our Individual and Family Plans business recognized in second quarter 2025. - Cigna Healthcare net medical costs payable8 was
$5.09 billion $4.78 billion $4.49 billion $268 million $297 million
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.
Financial Results (dollars in millions): | ||||
Three Months Ended | Six Months | |||
June 30, | March 31, | June 30, | ||
2026 | 2025 | 2026 | 2026 | |
Adjusted (Loss) from Operations, Pre-Tax1 | $ (389) | $ (357) | $ (377) | $ (766) |
2026 OUTLOOK2
The Cigna Group's outlook for full year 2026 consolidated adjusted income from operations1,2 is at least
(dollars in millions, except where noted and per share amounts) | ||
2026 Consolidated Metrics | Projection for Full Year Ending December 31, 2026 | Change from |
Adjusted Income from Operations, per share1,2 | at least | |
Evernorth Adjusted Income from Operations, Pre-Tax1,2 | at least | |
Cigna Healthcare Adjusted Income from Operations, Pre-Tax1,2 | at least | |
Cigna Healthcare Medical Care Ratio2,4 | ||
The foregoing statements represent the Company's current estimates of The Cigna Group's 2026 consolidated and segment adjusted income from operations1,2 and 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 second quarter 2026 results and discuss full year 2026 outlook 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: 07302026
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 over 180 million customer relationships around the world. Learn more at thecignagroup.com.
Notes:
1. 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 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.
2. 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) 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.
3. 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 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:
- The Cigna Healthcare medical care ratio ("MCR") represents medical costs as a percentage of premiums for all Cigna Healthcare risk 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 the second quarter 2026 represents enterprise selling, general and administrative expenses of
$3,470 million $71.7 billion $3,433 million $67.2 billion - Adjusted SG&A expense ratio for the second quarter 2026 represents enterprise selling, general and administrative expenses of
$3,290 million $180 million $3,271 million $162 million
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.
7. The Cigna Group owns noncontrolling interests in certain operating joint ventures. As such, the adjusted revenues for the Cigna Healthcare 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.
8. Medical costs payable within the Cigna Healthcare segment are presented net of reinsurance and other recoverables. The gross medical costs payable balance was
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 revenues; adjusted income from operations, including on a per share, and segment basis; adjusted SG&A expense ratio; adjusted effective tax rate; cash flow from operations; capital expenditures; shareholder dividends; weighted average shares outstanding; medical care ratio; and total medical customers); 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 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; 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) | ||||||||||||||
Three Months Ended | Six Months Ended | Three Months | ||||||||||||
June 30, | June 30, | March 31, | ||||||||||||
(Dollars in millions, except per share amounts) | 2026 | 2025 | 2026 | 2025 | 2026 | |||||||||
REVENUES | ||||||||||||||
Pharmacy revenues | $ 111,209 | $ 102,282 | ||||||||||||
Premiums | 9,859 | 9,156 | 19,671 | 21,892 | 9,812 | |||||||||
Fees and other revenues | 4,365 | 4,137 | 8,808 | 8,032 | 4,443 | |||||||||
Net investment income | 272 | 236 | 474 | 474 | 202 | |||||||||
Total revenues | 71,668 | 67,178 | 140,162 | 132,680 | 68,494 | |||||||||
Net investment results from certain equity method investments | (110) | (44) | (87) | (94) | 23 | |||||||||
Adjusted revenues (1) | $ 140,075 | $ 132,586 | ||||||||||||
Shareholders' net income | $ 1,660 | $ 1,532 | $ 3,314 | $ 2,855 | $ 1,654 | |||||||||
Pre-tax adjusted income (loss) from operations by segment | ||||||||||||||
Evernorth Health Services | $ 1,663 | $ 1,696 | $ 3,129 | $ 3,130 | $ 1,466 | |||||||||
Cigna Healthcare | 1,276 | 1,094 | 2,790 | 2,381 | 1,514 | |||||||||
Corporate and Other Operations | (389) | (357) | (766) | (768) | (377) | |||||||||
Adjusted income tax expense | (496) | (503) | (1,041) | (973) | (545) | |||||||||
Consolidated after-tax adjusted income from operations | $ 2,054 | $ 1,930 | $ 4,112 | $ 3,770 | $ 2,058 | |||||||||
Weighted average shares (in thousands) | 263,962 | 268,154 | 263,990 | 270,540 | 264,017 | |||||||||
Common shares outstanding (in thousands) | 264,154 | 266,901 | 264,498 | |||||||||||
SHAREHOLDERS' EQUITY at June 30, | ||||||||||||||
SHAREHOLDERS' EQUITY PER SHARE at June 30, | ||||||||||||||
Three Months Ended | Six Months Ended | Three Months | ||||||||||||
June 30, | June 30, | March 31, | ||||||||||||
2026 | 2025 | 2026 | 2025 | 2026 | ||||||||||
(Dollars in millions, except per share amounts) | Pre-tax | After-tax | Pre-tax | After-tax | Pre-tax | After-tax | Pre-tax | After-tax | Pre-tax | After-tax | ||||
SHAREHOLDERS' NET INCOME | ||||||||||||||
Shareholders' net income | $ 1,660 | $ 1,532 | $ 3,314 | $ 2,855 | $ 1,654 | |||||||||
Adjustments to reconcile to adjusted income from operations | ||||||||||||||
Net investment (gains) (2) | $ (41) | (55) | $ (96) | (103) | (288) | (151) | (233) | |||||||
Amortization of acquired intangible assets | 389 | 296 | 422 | 330 | 779 | 611 | 844 | 666 | 390 | 315 | ||||
Special Items | ||||||||||||||
Strategic optimization program | 70 | 53 | 129 | 98 | 450 | 343 | 344 | 261 | 380 | 290 | ||||
Integration and transaction-related costs | 34 | 26 | 74 | 56 | 69 | 53 | 290 | 220 | 35 | 27 | ||||
Charges (benefits) associated with litigation matters | 77 | 60 | — | — | 66 | 52 | — | — | (11) | (8) | ||||
Deferred tax expenses, net | — | 17 | — | 17 | — | 33 | — | 34 | — | 16 | ||||
(Gain) on sale of businesses | (6) | (3) | — | — | (6) | (6) | (41) | (115) | — | (3) | ||||
Adjusted income from operations (3) | $ 2,054 | $ 1,930 | $ 4,112 | $ 3,770 | $ 2,058 | |||||||||
DILUTED EARNINGS PER SHARE | ||||||||||||||
Shareholders' net income | $ 6.29 | $ 5.71 | $ 12.55 | $ 10.55 | $ 6.26 | |||||||||
Adjustments to reconcile to adjusted income from operations | ||||||||||||||
Net investment (gains) (2) | (0.21) | (0.38) | (1.09) | (0.56) | (0.88) | |||||||||
Amortization of acquired intangible assets | 1.48 | 1.12 | 1.57 | 1.23 | 2.96 | 2.32 | 3.12 | 2.47 | 1.48 | 1.19 | ||||
Special Items | ||||||||||||||
Strategic optimization program | 0.27 | 0.20 | 0.48 | 0.37 | 1.70 | 1.29 | 1.27 | 0.97 | 1.44 | 1.10 | ||||
Integration and transaction-related costs | 0.13 | 0.10 | 0.28 | 0.21 | 0.26 | 0.20 | 1.07 | 0.81 | 0.13 | 0.10 | ||||
Charges (benefits) associated with litigation matters | 0.28 | 0.23 | — | — | 0.25 | 0.20 | — | — | (0.04) | (0.03) | ||||
Deferred tax expenses, net | — | 0.06 | — | 0.06 | — | 0.13 | — | 0.13 | — | 0.06 | ||||
(Gain) on sale of businesses | (0.02) | (0.01) | — | — | (0.02) | (0.02) | (0.15) | (0.43) | — | (0.01) | ||||
Adjusted income from operations (3) | $ 7.78 | $ 7.20 | $ 15.58 | $ 13.94 | $ 7.79 | |||||||||
(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. |
INVESTOR RELATIONS CONTACT:
Ralph Giacobbe
860-787-7968
Ralph.Giacobbe@TheCignaGroup.com
MEDIA CONTACT:
Justine Sessions
860-810-6523
Justine.Sessions@Evernorth.com
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SOURCE The Cigna Group