Cigna Q2 adjusted revenue beats, lifts FY profit forecast on healthcare segment strength

Overview

• US health insurer's Q2 adjusted revenue beat analyst expectations, rising 7% yr/yr

• Adjusted income from operations rose 6% yr/yr, driven by Cigna Healthcare growth

• Company raised 2026 outlook for adjusted income from operations per share

Outlook

• Cigna raises 2026 outlook for adj income from operations to at least $30.45 per share

• Company expects Evernorth 2026 adj income from operations, pre-tax, at least $6,900 mln

• Cigna Healthcare 2026 medical care ratio projected at 83.7% to 84.7%

Result Drivers

• HEALTHCARE SEGMENT GROWTH - Cigna said Q2 adjusted income from operations rose due to higher contributions from Cigna Healthcare, including improved margin in U.S. Employer business

• PREMIUM RATE INCREASES - Co said higher Cigna Healthcare revenue was primarily due to premium rate increases to cover expected medical cost increases

• SPECIALTY VOLUME GROWTH - Co said Specialty and Care Services revenue and profit rose on strong specialty volume growth and higher generic and biosimilar adoption

Company press release: ID:nPn8DLCr3a

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 21 "strong buy" or "buy", 5 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the managed healthcare peer group is "buy"

• Wall Street's median 12-month price target for Cigna Group is $340.00, about 14.7% above its July 29 closing price of $296.47

• The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 9 three months ago

Reuters Recommended Reads

• July 29 - Humana leaves annual adjusted profit outlook unchanged, shares drop

• July 28 - Trump administration to end Medicare premium subsidy program

• July 27 - Universal Health Services cuts 2026 forecast on Medicaid reimbursement uncertainty

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)