The Cigna Group (CI)

The Cigna Group reported second-quarter 2026 revenue of $71.7 billion on 30 July, up 7 percent from a year earlier 3. Shareholders' net income was $1.7 billion, or $6.29 per share, which the company tied mainly to growth in Cigna Healthcare 3.

The two halves of the business moved differently 3. Evernorth, which runs the Express Scripts pharmacy benefit business and the specialty pharmacies, grew adjusted revenue 6 percent, but its pre-tax adjusted income from operations fell 2 percent 3. In the pharmacy benefit unit that income fell 27 percent, which the company tied to client-focused initiatives, including large client contract renewals 3.

On 30 September the company held an Investor Day and introduced a vision it calls Lead to One 4. It set a target of 10 to 14 percent average yearly growth in adjusted earnings per share through 2030 and announced a new $3 billion series of modernization and productivity initiatives 4.

Leadership changed this year 7. Brian Evanko became chief executive on 1 July, succeeding David Cordani, who became executive chair 7. On 6 October director Donna Zarcone told the board she plans to retire from it on 31 December 2026 6.

Two changes are in motion 28. The company announced in April 2026 that it plans to exit individual and family medical plans as of 1 January 2027 2. A rebate-free pharmacy benefit model is to reach Cigna's insured plans in 2027 8.

The company's predecessors were incorporated in Delaware in 1981 1. Its present shape came with the acquisition of Express Scripts in December 2018 1. Express Scripts is a pharmacy benefit manager: it processes drug claims, runs retail pharmacy networks and manages which drugs a plan covers 3.

Revenue grew from $195.3 billion in 2023 to $247.1 billion in 2024 and $274.9 billion in 2025 1. Most of that came from pharmacy revenue, which rose 35 percent in 2024 and 17 percent in 2025 1. The company tied the 2025 rise to higher use of prescription drugs from customer growth in Evernorth Health Services 1.

Profit was less steady than revenue 1. Net income fell to $3.8 billion in 2024 from $5.4 billion in 2023, in part because the company fully impaired its investment in VillageMD, recording a $2.7 billion loss 1. In 2025 net income rose to $6.3 billion, and shareholders' net income rose 73 percent, mainly because the VillageMD impairment did not recur 1.

On 19 March 2025 the company completed the sale of its Medicare Advantage, Medicare stand-alone drug plan, Medicare supplemental and CareAllies businesses to Health Care Service Corporation 1. Cash proceeds collected in 2025 were $4.9 billion, mostly used for share repurchases 1.

The sale shrank the insurance side 1. Premiums fell 12 percent to $40.3 billion in 2025, and medical customers fell 5 percent, which the company tied mainly to the closing of that sale 1.

In the first quarter of 2025 the company began an enterprise-wide efficiency effort it calls the strategic optimization program 1. It cost $749 million before tax in 2025, and the company expects annual after-tax savings of at least $500 million 1.

The company also borrowed $2.0 billion on a term loan to partly fund an investment in Shields Health Solutions, a specialty pharmacy management company, and repaid it in September 2025 1.

In October 2025 the company announced a rebate-free pharmacy benefit model 8. In early February 2026 Express Scripts settled the Federal Trade Commission's lawsuit against it, with no financial penalty for Cigna, Healthcare Dive reported 8.

The settlement stops Express Scripts from being paid on the size of the savings it negotiates with drugmakers in its most common employer offering 8. It is paid a core administrative fee per member per prescription instead 8. The leadership change followed: on 25 February 2026 the board named Brian Evanko chief executive from 1 July 7.

The shape of the company

The company reports two main segments, Evernorth Health Services and Cigna Healthcare, plus a small Other Operations group of run-off and non-strategic businesses 1. Evernorth holds the Pharmacy Benefit Services and Specialty and Care Services units, and Cigna Healthcare holds U.S. Healthcare and International Health 1.

At 30 June 2026 it counted 182.8 million customer relationships worldwide, down 3 percent since December 2025, mostly because of fewer pharmacy customers 3.

Express Scripts and pharmacy benefits

Express Scripts runs pharmacy benefits for employers and health plans: it pays pharmacies for filled prescriptions, manages drug lists and offers home delivery 3. In 2025 the unit's adjusted revenue was $132.1 billion, up 18 percent, and its pre-tax adjusted income was $3.5 billion, down 2 percent 1.

The company renewed or extended contracts with its three largest clients through the end of the decade 1. It is spending on investment and transition costs for the rebate-free model, which it expects to weigh on Evernorth's pre-tax adjusted income over the short term 1.

Specialty pharmacy and care services

Accredo is the specialty pharmacy, organized by condition, and the 10-K counts 35 licensed specialty pharmacies 1. CuraScript SD distributes specialty drugs and medical supplies to clinics and hospitals from four distribution centers 1.

Specialty and Care Services had adjusted revenue of $102.8 billion in 2025, up 14 percent, and pre-tax adjusted income of $3.7 billion, up 8 percent 1. At Investor Day the company said it supports more than one million patients with complex conditions and fills more than 8 million prescriptions a year 4.

Cigna Healthcare

Cigna Healthcare sells medical, dental, behavioral and related coverage to employers and individuals, and health plans for globally mobile people through its International Health unit 3. It served 18.4 million medical customers at 30 June 2026, up 2 percent since December 3.

Second-quarter adjusted revenue was $11.7 billion, up 9 percent on higher premium rates meant to cover rising medical costs 3. The medical care ratio, medical costs as a share of premiums, was 84.5 percent against 83.2 percent a year earlier 3.

The individual and family plans, sold in 11 states, close at the end of 2026, which KFF Health News relayed affects about 369,000 members 11.

People and places

The company had about 67,700 employees at the end of 2025, roughly 88 percent in the United States 1. It owns its Bloomfield, Connecticut headquarters, the Wilde Building, and runs 11 home delivery pharmacies, 35 specialty pharmacies and four high-volume automated dispensing pharmacies 1.

Brian Evanko is chief executive, David Cordani is executive chair and Ann Dennison has been chief financial officer since March 2025 17.

Rivals and current problems

The 10-K names national insurers, local health plans, dental insurers, independent and managed care pharmacy benefit managers and global insurers as primary competitors 1. Healthcare Dive lists CVS and UnitedHealth as other owners of major pharmacy benefit managers 8.

The 10-K says the company is routinely involved in lawsuits, regulatory inquiries and government investigations, including under the federal False Claims Act 1. A $77 million before-tax charge for litigation matters was among second-quarter 2026 special items 2.

The umbrella, in words

The main brands are Cigna Healthcare, Evernorth Health Services, Express Scripts, Accredo and CuraScript SD 1. The subsidiaries exhibit lists, among others, Express Scripts, Inc. (Delaware), Accredo Health, Incorporated (Delaware), Cigna Health and Life Insurance Company (Connecticut) and Cigna Global Insurance Company Limited (Guernsey) 9.

Two investments stand out: the company invested in Shields Health Solutions, and it fully impaired an earlier investment in VillageMD in 2024 1. The 10-K reports 8.1 million square feet of owned and leased space, with 6.3 million in 42 states 1.

On control, a Schedule 13G dated 31 March 2026 shows Vanguard Capital Management reporting 19,814,433 common shares, 7.51 percent of the class 10.

The company raised its 2026 outlook on 30 July and reaffirmed it on 30 September 35. It expects consolidated adjusted revenues of about $280 billion and adjusted earnings per share of at least $30.45 5.

It also expects adjusted income from operations of at least $6.9 billion at Evernorth and at least $4.55 billion at Cigna Healthcare, with a Cigna Healthcare medical care ratio of 83.7 to 84.7 percent 5.

For the longer term the company set targets through 2030: average yearly adjusted earnings per share growth of 10 to 14 percent and about $50 billion in cumulative operating cash flow 4.

The $3 billion modernization effort is to streamline workflows, give colleagues AI-enabled tools and tighten supplier management 4. The company also said its foundation is starting a $10.5 million, three-year program for patients and caregivers 4.

Chief operating officer Brian Evanko said in February that Cigna's insured plans would adopt the rebate-free model in 2027 and that at least half of Evernorth's clients would adopt it by the end of 2028 8. He also said profit should stay comparable although its source changes 8.

The Lead to One plan rests on three steps the company named: deliver core growth, leverage distinct capabilities and execute with discipline 4. Chief financial officer Ann Dennison said the targets are supported by growth pillars and by initiatives that "will self-fund" performance 4.

The 2026 outlook includes the effect of expected future share repurchases and anticipated 2026 dividends 3. Through 29 July 2026 the company had repurchased 0.9 million shares for about $250 million 3.

The company has renewed or extended contracts with Evernorth's three largest clients through the end of the decade 1. It expects investment and transition costs for the rebate-free model to affect Evernorth's pre-tax adjusted income over the short term 1.

Individual and family medical plans end on 1 January 2027 2. Director Donna Zarcone plans to retire from the board on 31 December 2026 6. The 2025 efficiency program is expected to bring annual after-tax savings of at least $500 million 1.

Past

The Cigna Group's revenue rose from $40 billion in fiscal 2016 to $275 billion in fiscal 2025, up 23.9% a year, climbing in 9 of 9 years and never falling from a peak. Net income stayed positive in 10 of 10 filed years. Over the three fiscal years to 2025, the diluted share count shrank about 5.0% a year, and dividends and buybacks returned about 55% of operating cash flow. Since fiscal 2016, nine years earlier, net worth has moved about 13.2% a year up. The grade's past tense reads 6.9 of 10. 123

Present

In its latest annual figures on file, for the fiscal year ended 2025-12-31, The Cigna Group reported revenue of $275 billion and a profit of $6.3 billion. In fiscal 2025, the company earned about 15 cents of profit for every dollar of shareholders' money, its products earned about 38 cents per dollar of everything it owns, it owed about 73 cents per dollar of assets, and its share count shrank 5.2% over the year. 31

The Cigna Group's revenue of $275 billion in fiscal 2025 ranks in the top 15% by size among its industry family; a net margin of 2.3% ranks in the top 25%; revenue growth of 15% a year over the last 3 filed years ranks in the top 45%. The chief executive on the record is Evanko, Brian C, filing under that title since 2026-09-03, 2 months; the 24 officers and directors filing in the last fifteen months have been on the record a median of 5.4 years; 11 officer or director changes were reported since 2023-10-21, against the 24 people in charge now. The grade's present tense reads 6.0 of 10. 13

Future

A quarterly report (Form 10-Q) for the quarter ending 2026-09-30 is due by 2026-11-09. An annual report (Form 10-K) for the fiscal year ending 2026-12-31 is due by 2027-03-01. 4

The Cigna Group's cash of $7.7 billion against debt of $31 billion leaves negative 14.7% of its assets as net cash; cash from operations less capital spending is 3.5% of revenue; a gross margin of 21.8%. Revenue grew 15% a year over the last three filed years against 23.9% over all 10, slowing; the newest year grew 11.2%; capital spending grew 31.6% a year. Revenue of $275 billion in fiscal 2025 came in 4.9% below the $289 billion its prior three years' pace pointed to; net income of $6.3 billion came above the prior three-year average of $5.3 billion; a net margin of 2.3% came below 2.7% before. The grade's future tense reads 4.8 of 10. 13

How the company operates

The Cigna Group reported 3 lines of business in fiscal 2025: Evernorth at $235 billion, Cigna Healthcare at $47 billion, All Other at $674 million; the largest line is 83% of revenue. The Cigna Group is classed as an insurance business under Hospital & Medical Service Plans. 13

New moves

On 2026-10-09, The Cigna Group filed a Form 8-K reporting an officer or director change for the period ended 2026-10-06. 4