Cigna beats, raises 2026 adjusted EPS outlook amid portfolio reshaping

 

Cigna beats Q1 2026 estimates, raises 2026 adjusted EPS outlook to at least $30.35 amid portfolio reshaping

• Q1 adjusted EPS $7.79, up 16% YoY, exceeding internal expectations and supporting guidance raise.
• Zacks consensus estimated adjusted EPS $7.62 and revenue $66.74 billion for Q1 2026, both below reported results.
• Revenue $68.5 billion; Evernorth revenue up 9%, Specialty & Care earnings up 20%.
• Raised full-year 2026 adjusted EPS outlook to at least $30.35, signaling confidence in durability.
• Cigna Healthcare pretax earnings grew 18% YoY; 79.8% medical care ratio beat prior expectations.
• Pharmacy Benefit Services earnings fell 28% YoY from large-client repricing and Signature model build-out.
• Announced exit of individual exchange business after 2026, modest capital release and sharper management focus.
• Initiated strategic review for eviCore prior-authorization unit amid industry standardization, potential partnership or divestiture.
• Specialty growth underpinned by biosimilars, specialty generics, Shields investment and strong volumes in complex therapies.
• 2026 guidance: Evernorth income ≥$6.9B; Cigna Healthcare pretax earnings ≥$4.525B; MCR range unchanged.
• Medical trend elevated but stable; GLP-1 affordability tensions persist despite management programs and financing innovations.
• Main concern: PBM earnings compression and persistently high medical cost trend during major portfolio transition.
• Strong quarter, driven by specialty and care services growth and better-than-expected Cigna Healthcare medical costs.

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