The Cigna Group (NYSE:CI) reported third-quarter adjusted earnings of $7.98 per share, beating the consensus of $7.50.
The company reported revenue of $73.683 billion, up 6% year over year, beating the consensus of $72.720 billion.
Anticipated 2027 Headwinds: Rebates, GLP-1 Coverage and ACA Exit
In an earnings call, President and CEO David Cordani said, “As we look to 2027, we remain confident in the strength of our strategic growth framework and our ability to perform through a dynamic environment.”
Cigna still expects adjusted EPS growth of at least 10% in 2027 off its 2026 run rate, but it flagged several headwinds for next year.
These include shrinking industry rebate pools and lower employer coverage of GLP-1 weight-loss drugs within Evernorth Pharmacy Benefit Services, fewer biosimilar and specialty generic launches within Evernorth Specialty and Care Services, and the previously announced exit from the ACA Exchange business, which will eliminate that revenue contribution from Cigna Healthcare.
Growth Drivers and Operating Tailwinds
The company highlighted three key growth and margin tailwinds: continued improvement in stop-loss margins at Cigna Healthcare, a strong 2027 selling season across Evernorth and Cigna Healthcare, supported by high client retention and new business wins, and enterprise-wide cost savings from its Accelerate to One modernization and productivity initiative.
These factors are expected to support attractive enterprise revenue growth in 2027.
Customer Relationship and Membership Breakdown
Total customer relationships decreased 6% from Dec. 31, 2025, to 177.6 million at Sept. 30 due to lower pharmacy and behavioral customers.
Pharmacy customers decreased 5% from Dec. 31, 2025, to 117.7 million, reflecting expected client transitions and lower membership from health plan clients.
Behavioral customers decreased 19% to 23 million, due to the termination of a government contract. Medical customers increased 2% to 18.5 million.
Segment Performance
Evernorth Health Services adjusted revenues increased 6% to $63.774 billion. Pharmacy Benefit Services revenue rose 9% to $37.276 billion, while Specialty and Care Services revenue increased 1% to $26.498 billion.
Cigna Healthcare sales increased 9% to $11.708 billion, primarily reflecting premium rate increases to cover expected increases in medical costs.
The Cigna Healthcare medical cost ratio (MCR) was 85.0%, compared with 84.8% a year ago, primarily due to U.S. Employer business mix, partially offset by a lower MCR within Individual and Family Plans business.
Raised 2026 Outlook
Cigna raised its 2026 adjusted earnings outlook to at least $30.60 per share from earlier guidance of at least $30.45, compared with the consensus of $30.51.
Cigna Healthcare now expects a 2026 medical care ratio of 84.2%, plus or minus 25 basis points, a range narrowed by 50 basis points.
CI Stock Price Activity: Cigna shares are trading lower by 0.53% at $303.79 at the time of publication on Thursday, according to Benzinga Pro data.
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