01—Abstract
Summary
Summary of the 10-Q filed April 30, 2026. Cited figures are marked; the original filing is the authoritative source.
Cigna Group reported strong financial results for the first quarter of 2026, with total revenues reaching $68.5 billiona, a 5% increase year-over-year, driven primarily by an 11% rise in Pharmacy revenues and a 14% increase in Fees and other revenues.
Shareholders' net income saw a significant jump of 25% to $1.65 billionb, or $6.26 per diluted share, reflecting improved operational performance across its segments. The Evernorth Health Services segment demonstrated robust growth, with adjusted revenues up 9%, propelled by strong performance in Pharmacy Benefit Services.
The Cigna Healthcare segment, despite a 21%c decline in adjusted revenues primarily due to the prior year's HCSC transaction, achieved an impressive 18% increase in pre-tax adjusted income from operations, signaling margin expansion. Overall, the company's strategic focus on its health services capabilities appears to be yielding positive results, with solid revenue growth and a substantial increase in profitability.
02—Key points
Key Highlights
- Total revenues increased by 5% to $68.5 billion in Q1 2026, compared to $65.5 billion in Q1 2025.
- Shareholders' net income grew by 25% to $1.65 billion, translating to a diluted EPS of $6.26, up from $4.85 in the prior year.
- Evernorth Health Services saw adjusted revenues increase by 9% to $58.4 billion, driven by Pharmacy Benefit Services.
- Cigna Healthcare's pre-tax adjusted income from operations rose by 18% to $1.51 billion, despite a 21% decrease in adjusted revenues due to the HCSC transaction.
- Pharmacy revenues increased by 11% to $54.0 billion, indicating strong performance in this core area.
- Selling, general and administrative expenses decreased by 12% to $3.7 billion, partly due to the HCSC transaction, showcasing cost management efforts.
- The company maintained a strong liquidity position with $7.3 billion in cash and short-term investments as of March 31, 2026.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q1 FY2026, Cigna Group kept $0.03.
- Revenue$68.49B100.0%
- Cost of revenue−$54.10B79.0%
- Gross profit$14.39B21.0%
- Operating costs−$12.04B17.6%
- Operating income$2.36B3.4%
- Interest, other & tax−$497.0M0.7%
- Net income$1.86B2.7%
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2026filed April 30, 2026Financial Statements
Q1 FY2026 against Q1 FY2025
| Line item | Q1 FY2026Q1 FY2025 | Change |
|---|---|---|
| Revenue | $68.49B$65.50B | +4.6% |
| Cost of Revenue | $54.10B$48.40B | +11.8% |
| Gross Profit | $14.39B$17.10B | −15.8% |
| SG&A Expenses | $3.72B$4.21B | −11.7% |
| Operating Income | $2.36B$1.97B | +19.6% |
| Interest Expense | $357.00M$362.00M | −1.4% |
| Net Income | $1.86B$1.32B | +40.7% |
| EPS (Basic) | $6.30$4.88 | +29.1% |
| EPS (Diluted) | $6.26$4.85 | +29.1% |
| Shares Outstanding (Diluted) | 264.02M272.95M | −3.3% |
05—Questions
Frequently Asked Questions
What were the main drivers of Cigna's revenue growth in the first quarter of 2026?
Cigna's total revenues increased by 5% to $68.5 billion, driven primarily by an 11% rise in Pharmacy revenues to $54.0 billion and a 14% increase in Fees and other revenues to $4.4 billion. The Evernorth Health Services segment, in particular, showed strong performance with a 9% increase in adjusted revenues.
How did the HCSC transaction impact the Cigna Healthcare segment's financial results?
The Cigna Healthcare segment's adjusted revenues decreased by 21% primarily due to the prior year's HCSC transaction. However, despite the revenue decline, the segment's pre-tax adjusted income from operations increased by 18% to $1.51 billion, indicating improved profitability and margin expansion in its ongoing businesses.
What is the company's outlook on profitability and earnings per share?
Cigna Group demonstrated strong profitability in the first quarter of 2026, with shareholders' net income increasing by 25% to $1.65 billion. Diluted earnings per share rose to $6.26, up from $4.85 in the prior year's quarter, driven by improved operational performance and effective cost management.
What is the company's financial health and liquidity position?
Cigna Group maintains a solid financial position. As of March 31, 2026, the company had $7.3 billion in cash and short-term investments. The debt-to-capitalization ratio was 42.3%, indicating a manageable level of leverage. Operating cash flows remained strong, providing ample liquidity for operational needs and capital allocation.
06—Continue