Cigna : First Quarter 2026 Earnings Release Financial Supplement

Published: 2026-04-30 09:58:22 ET CI

Published on 04/30/2026 at 09:58 am EDT

This document is dated April 30, 2026. The data contained in this document may

not be accurate after such date and The Cigna Group does not undertake to update or keep it accurate after such date.

Evernorth Health Services Segment Analysis 3

Corporate and Other Operations Analysis 9

Consolidated Balance Sheets 10

Condensed Consolidated Statements of Cash Flows 11

BASIS OF PRESENTATION:

All dollar amounts are in millions, unless otherwise noted.

The Cigna Group® (the "Company" or "our") measures its financial results on a consolidated basis using adjusted income from operations and adjusted revenues. Adjusted income from operations and adjusted revenues on a consolidated basis are not determined in accordance with accounting principles generally accepted in the United States of America ("GAAP") and should not be viewed as a substitute for the most directly comparable GAAP measures which are shareholders' net income and total revenues. The Company also uses adjusted income (loss) from operations to measure the results of its segments, however the segment metric is determined before income taxes.

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. The Company defines adjusted income (loss) from operations as shareholders' net income (or income (loss) 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 the Financial Highlights page for a reconciliation of consolidated adjusted income from operations to shareholders' net income.

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 the Financial Highlights page for a reconciliation of consolidated adjusted revenues to total revenues.

In some financial tables in this Quarterly Financial Supplement, we present percentage changes. When those changes are so large as to become not meaningful, we present "N/M" in place of the computed percentage.

(Dollars in millions, except per share amounts) Three Months Ended March 31,

2026

2025

% Change

Total revenues

$ 68,494

$ 65,502

Net investment results from certain equity method investments

(50)

N/M

Adjusted revenues

$ 68,517

$ 65,452

Shareholders' net income

$ 1,654

$ 1,323

Pre-Tax Adjusted Income (Loss) From Operations by Segment

Evernorth Health Services

$ 1,466

$ 1,434

Cigna Healthcare

1,514

1,287

Corporate and Other Operations

(377)

(411)

(8)

Adjusted income tax expense

(545)

(470)

Consolidated after-tax adjusted income from operations

$ 2,058

$ 1,840

Adjusted EBITDA (1)

$ 3,220

$ 2,924

Operating cash flow (see page 11)

$ 1,131

$ 1,920

(41)

SG&A expense ratio (2)

5.4

6.4

(100)

bps

Adjusted SG&A expense ratio (2)

4.8

5.8

(100)

bps

Weighted average shares (in thousands)

264,017

272,953

Diluted earnings per share

Three Months Ended March 31, 2026 2025

Pre-tax After-tax Pre-tax After-tax % Change

Net investment (gains) (3) $ (0.89) (0.88) $ (0.18) (0.18)

Amortization of acquired intangible assets 1.48 1.19 1.54 1.23

Strategic optimization program 1.44 1.10 0.79 0.60

Integration and transaction-related costs 0.13 0.10 0.79 0.60

Deferred tax expenses, net - 0.06 - 0.06

(Gain) on sale of businesses - (0.01) (0.15) (0.42)

(Benefits) associated with litigation matters (0.04) (0.03) - - Total special items $ 1.53 1.22 $ 1.43 0.84

Adjusted income from operations $ 7.79 $ 6.74 16 %

(Relationships and lives in thousands) 2026 2025 % Change 2025 % Change

Pharmacy 121,020 122,283 (1) % 123,603 (2) %

Medical (see page 7) 18,334 18,043 2 18,118 1

Behavioral Care 27,558 23,416 18 28,269 (3)

Dental 18,558 18,466 - 18,438 1

Total customer relationships 185,470 182,208 2 % 188,428 (2) %

Adjusted income from operations excluding interest, taxes, depreciation and amortization ("Adjusted EBITDA") is a non-GAAP measure, defined as shareholders' net income excluding income taxes and the pre-tax impact of special items, interest expense, total depreciation and amortization, and net investment results.

SG&A expense ratio is calculated as selling, general and administrative expenses including special items divided by total revenues. Adjusted SG&A expense ratio is calculated as selling, general and administrative expenses excluding special items divided by adjusted revenues.

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.

(Dollars in millions)

Three M

onths Ended M

arch 31,

2026

2025

% Change

Revenues

Pharmacy revenues

$ 54,037

$ 48,633

11 %

Premiums

9,812

12,736

(23)

Fees and other revenues

4,443

3,895

Net investment income

202

238

(15)

Total revenues

68,494

65,502

Benefits and expenses

Pharmacy and other service costs

54,100

48,398

Medical costs and other benefit expenses

7,924

10,498

(25)

Selling, general and administrative expenses excluding special items

3,321

3,799

(13)

Amortization of acquired intangible assets

390

422

(8)

Special items

401

414

(3)

Total benefits and expenses

66,136

63,531

Income from operations

2,358

1,971

Interest expense and other

(357)

(362)

(1)

Gain on sale of businesses

(73)

Net investment gains (losses)

258

(2)

N/M

Income before income taxes

2,270

1,648

Total income taxes

409

239

Net income

1,861

1,409

Less: Net income attributable to noncontrolling interests

207

141

Shareholders' net income

$ 1,654

$ 1,323

25 %

Three Months Ended March 31, 2026 2025

Pre-tax After-tax Pre-tax After-tax % Change

Shareholders' net income

Adjustments to reconcile adjusted income from operations

$ 1,654

$ 1,323

Net investment (gains) (1)

$ (235)

(233)

$ (48)

(48)

Amortization of acquired intangible assets

390

315

422

336

Special items

Strategic optimization program

380

290

215

163

Integration and transaction-related costs

216

164

Deferred tax expenses, net

(Gain) on sale of businesses

(3)

(41)

(115)

(Benefits) associated with litigation matters

(11)

(8)

Adjusted income from operations

$ 2,058

$ 1,840

(Dollars in millions) Three Months Ended March 31,

2026

2025

% Change

Revenues

Pharmacy revenues

$ 54,294

$ 50,226

8 %

Fees and other revenues

4,123

3,424

Net investment income

(19)

Total revenues (1)

58,442

53,681

Benefits and expenses

Pharmacy and other service costs

55,700

51,121

Selling, general and administrative expenses (2)

1,049

1,024

Amortization of acquired intangible assets

388

415

(7)

Special items

(81)

Total benefits and expenses

57,141

52,581

Income from operations

1,301

1,100

Interest expense and other

(1)

N/M

Gain on sale of businesses

N/M

Net investment gains

261

N/M

Income before income taxes

1,561

1,108

Pre-tax adjustments required to reconcile to adjusted income from operations

Pre-tax (income) attributable to noncontrolling interests

(226)

(102)

Net investment (gains)

(261)

(4)

Amortization of acquired intangible assets

388

415

Special items

Pre-tax adjusted income from operations

$ 1,466

$ 1,434

2 %

Pre-tax margin

2.5

2.7 %

(20) bps

(1) Total revenues equal adjusted revenues as there were no special items in the periods presented.

Selling, general and administrative expenses reflect the expenses included in the evaluation of Evernorth Health Services' performance.

(Dollars and pharmacy scripts in millions) Three Months Ended March 31,

2026 2025 % Change

Pharmacy Benefit Services (1)

$ 33,002

$ 29,742

11 %

Specialty and Care Services (1)

25,440

23,939

Total adjusted revenues

$ 58,442

$ 53,681

9 %

Pre-tax adjusted income from operations

Pharmacy Benefit Services (1)

$ 394

$ 544

(28) %

Specialty and Care Services (1)

1,072

890

Total pre-tax adjusted income from operations

$ 1,466

$ 1,434

2 %

Pharmacy claim volume (2)

527

539

(2) %

Includes Net investment income of $7 million and $16 million for Pharmacy Benefit Services and $18 million and $15 million for Specialty and Care Services for the three months ended March 31, 2026 and 2025, respectively.

Non-specialty network prescriptions filled through 90-day programs and home delivery prescriptions are counted as three claims. All other network and specialty prescriptions are counted as one claim.

Premiums

$ 9,605

$ 12,628

(24) %

Fees and other revenues

1,746

1,771

(1)

Net investment income

103

133

(23)

Total revenues

11,454

14,532

(21)

Benefits and expenses

Medical costs

7,664

10,385

(26)

Selling, general and administrative expenses (1)

2,301

2,812

(18)

Amortization of acquired intangible assets

(71)

Special items

N/M

Total benefits and expenses

9,969

13,204

(25)

Income from operations

1,485

1,328

Interest expense and other

Gain on sale of businesses

N/M

Net investment losses

(6)

(3)

100

Income before income taxes

1,481

1,364

Pre-tax adjustments required to reconcile to adjusted income from operations

Net investment losses (gains) (2)

(47)

Amortization of acquired intangible assets

Special items

(37)

Pre-tax adjusted income from operations

$ 1,514

$ 1,287

18 %

Pre-tax margin

13.2

8.9

430 bps

Reconciliation of total revenues to adjusted revenues

Total revenues

$ 11,454

$ 14,532

(21) %

Net investment results from certain equity method investments

(50)

N/M

Adjusted revenues

$ 11,477

$ 14,482

(21) %

Selling, general and administrative expenses reflect the expenses included in the assessment of Cigna Healthcare's performance.

‌Premiums:

Employer insured

$ 4,996

$ 4,688

7 %

Stop loss

2,116

1,868

Individual and Family Plans

873

859

Other

507

457

U.S. Healthcare - ongoing businesses

8,492

7,872

Medicare Advantage (1)

2,363

N/M

Other (1)

1,415

N/M

U.S. Healthcare - divested businesses (1)

3,778

N/M

Total U.S. Healthcare

8,492

11,650

(27)

International Health

1,113

978

Total premiums

$ 9,605

$ 12,628

(24) %

Medical Care Ratio

79.8

82.2

(240) bps

(1) On March 19, 2025, the Company completed the sale of our Medicare Advantage, Medicare Individual Stand-Alone Prescription Drug Plans, Medicare and Other Supplemental Benefits, and CareAllies® businesses (the "HCSC transaction"). For additional information, please refer to the Divestiture footnote in the Company's Form 10-K for the period ended December 31, 2025.

‌FUNDING TYPE:

2026

2025 (5)

% Change

2025

% Change

MARKET SEGMENT: (4)

2026

2025 (5)

% Change

2025 (5)

% Change

(Lives in thousands)

U.S. Healthcare insured Employer insured

2,124

2,199

(3) %

2,179

(3) %

(Lives in thousands)

U.S. Healthcare National Accounts

5,209

5,485

(5) %

5,415

(4) %

Individual and Family Plans (2)

369

446

(17)

369

Middle Market

7,796

7,291

7,459

Total U.S. Healthcare insured

2,493

2,645

(6)

2,548

(2)

Select

3,246

3,121

3,175

Small

(86)

(40)

International Health insured (3)

1,241

1,227

1,260

(2)

Individual and Family Plans (2)

369

446

(17)

369

U.S. Healthcare administrative services only

14,130

13,719

13,875

Total U.S. Healthcare

16,623

16,364

16,423

International Health administrative services only (3)

470

452

435

International Health

1,711

1,679

1,695

Total medical customers

18,334

18,043

18,118

1 %

Total medical customers

18,334

18,043

18,118

1 %

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 the Cigna Healthcare provider network for covered services under their medical plan; or (iii) have medical claims that are administered by Cigna Healthcare.

As of March 31, 2026, Individual and Family Plans include on-exchange Patient Protection and Affordable Care and Education Reconciliation Act ("ACA") business (355 thousand customers) and off-exchange ACA business (14 thousand customers).

International Health excludes medical customers served by less than 100% owned subsidiaries, as well as certain customers served by our third-party administrator.

Market Segments are defined as follows:

the National Accounts market segment includes employers with 3,000 or more eligible employees;

the Middle Market segment includes employers with 500 to 2,999 eligible employees, solutions for third party payers, Taft Hartley plans, and other groups;

the Select market segment includes employers with 51 to 499 eligible employees;

the Small market segment includes employers with 2 to 50 eligible employees;

the Individual and Family Plans market segment offers individual health insurance coverage both on and off the public exchanges;

the International Health market segment is focused on health care coverage in our international markets, as well as health care benefits for globally mobile individuals and employees of multinational organizations.

Prior year lives have been reclassified to reflect current market segment presentation according to the definitions discussed in note 4.

(Dollars in millions)

Three

Months E

nded March 31,

ar Ended

2026

2025

December 31, 2025

Beginning balance

4,241

$ 5,018

Less: Reinsurance and other amounts recoverable

147

159

Beginning balance, net

Incurred costs related to:

Current year

4,094

7,852

4,859

10,606

4,859

33,816

Prior years

(188)

(222)

(342)

Total incurred

7,664

10,384

33,474

Paid costs related to:

Current year

4,119

6,078

28,769

Prior years

2,859

3,472

4,147

Total paid

6,978

9,550

32,916

Less: Divestiture and other

1,323

Ending balance, net

4,780

4,370

4,094

Add: Reinsurance and other amounts recoverable

140

138

147

Ending balance

4,920

$ 4,508

4,241

Unpaid claims liability is included in the Insurance and contractholder liabilities balance on the Consolidated Balance Sheets, except $983 million classified as liabilities of businesses held for sale as of December 31, 2024. For additional information regarding this liability, see the Insurance and Contractholder Liabilities footnote in the Company's Form 10-Q for the period ended March 31, 2026, expected to be filed on April 30, 2026.

(Dollars in millions)

Three Months

ded March 31,

2026

2025

% Change

Revenues

Total revenues and eliminations (1)

$ (1,402)

$ (2,711)

(48) %

Expenses

Total expenses and eliminations excluding special items (1)

(1,369)

(2,647)

(48)

Special items

395

393

Total expenses and eliminations (1)

(974)

(2,254)

(57)

Loss from operations

(428)

(457)

(6)

Interest expense and other

(358)

(364)

(2)

Gain on sale of businesses

N/M

Net investment gains (losses)

(3)

N/M

Loss before income taxes

(772)

(824)

(6)

Pre-tax adjustments required to reconcile adjusted income (loss) from operations

Net investment (gains) losses

(3)

Special items

398

410

Pre-tax adjusted loss from operations

$ (377)

$ (411)

(8) %

(1) Includes amounts for elimination of intercompany revenues and expenses.

‌Consolidated Balance Sheets (unaudited)‌

(Dollars in millions)

As of March 31,

2026

As of December 31,

2025

As of March 31,

2026

As of December 31,

2025

Assets

Liabilities

Current Assets

Current Liabilities

Cash and cash equivalents

$ 7,040

$ 7,676

Current insurance and contractholder liabilities

$ 6,455

$ 5,710

Investments

812

1,056

Pharmacy and other service costs payable

25,763

30,333

Accounts receivable, net

26,607

28,768

Accounts payable

9,879

10,659

Inventories

5,831

7,338

Accrued expenses and other liabilities

8,980

9,048

Other current assets

2,742

2,976

Short-term debt

1,529

592

Total current assets

43,032

47,814

Total current liabilities

52,606

56,342

Long-term investments

18,902

18,471

Non-current insurance and contractholder liabilities

9,777

9,938

Reinsurance recoverables

4,073

4,103

Deferred tax liabilities, net

6,851

7,145

Property and equipment

3,704

3,651

Other non-current liabilities

4,769

4,238

Goodwill

45,534

44,924

Long-term debt

29,371

30,871

Other intangible assets

27,318

28,560

Separate account liabilities

7,450

7,511

Other assets

3,253

2,885

Total liabilities

110,824

116,045

Separate account assets

7,450

7,511

Shareholders' Equity

Common stock

Additional paid-in capital

31,914

31,790

Accumulated other comprehensive loss

(3,598)

(2,806)

Retained earnings

49,106

47,865

Less: Treasury stock, at cost

(35,216)

(35,140)

Total shareholders' equity

42,210

41,713

Noncontrolling interests

232

161

Total equity

42,442

41,874

Total assets

$ 153,266

$ 157,919

Total liabilities and equity

$ 153,266

$ 157,919

(Dollars in millions)

Thre

e Month

s Ende

d March 31,

2026

2025

CASH FLOWS FROM OPERATING ACTIVITIES

Net income

1,861

1,409

Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization

650

674

Investment (gains) losses, net

(258)

Deferred income tax benefit

(60)

(216)

Gain on sale of businesses

Net changes in assets and liabilities, net of non-operating effects:

(11)

(41)

Accounts receivable, net

2,152

(2,205)

Inventories

1,507

1,517

Reinsurance recoverable and Other assets

104

(219)

Insurance liabilities

739

1,778

Pharmacy and other service costs payable

(4,570)

135

Accounts payable and accrued expenses and other liabilities

(988)

(1,174)

Other, net

260

Net cash provided by operating activities

1,131

1,920

Net cash (used in) provided by investing activities

(637)

1,197

Net cash used in financing activities

(1,141)

(3,681)

Effect of foreign currency rate changes on cash, cash equivalents and restricted cash

(9)

Net decrease in cash, cash equivalents and restricted cash

(656)

(555)

Cash, cash equivalents and restricted cash January 1, (1)

7,736

8,931

Cash, cash equivalents and restricted cash March 31, (2)

7,080

8,376

(1) Includes restricted cash of $60 million reported in other long-term investments and Other assets as of January 1, 2026.

(2) Includes restricted cash of $40 million reported in other long-term investments and Other assets as of March 31, 2026.

Disclaimer

The CIGNA Corporation published this content on April 30, 2026, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on April 30, 2026 at 13:52 UTC.