Cigna Group raised its full-year 2026 adjusted earnings outlook to at least $30.60 after third-quarter adjusted EPS of $7.98 beat the $7.52 consensus.
Revenue climbed 6% from a year earlier to $73.7B, ahead of the $72.65B analysts expected.
The guidance raise of $0.15 lands above the market consensus of $30.51.
It's the company's fifth straight quarter topping consensus.
Pricing is doing the heavy lifting
Cigna Healthcare grew adjusted revenue 9%, mostly on higher premium rates set to cover expected medical costs.
Pre-tax adjusted income in that unit rose 15%, helped by those rate increases and higher net investment income.
Evernorth Health Services told the other half of the story, with adjusted revenue up 6% and adjusted pre-tax operating income down 4%.
Pharmacy Benefit Services profit fell on large client contract renewals, while the Specialty and Care Services segment posted a 15% profit gain on wider use of biosimilars and specialty generics.
Management is spending $3B on a multi-year modernization program called Accelerate to One, and has set long-term targets of 10% to 14% adjusted EPS growth through 2030.
The planned exit from Individual and Family Plans medical business on Jan. 1, 2027 will reshape the membership mix next year.
The rest of the sector is beating
UnitedHealth Group reported adjusted EPS of $4.69 against $4.14 expected, and guided fiscal 2026 adjusted earnings to at least $20.50, up from $19.50 to $20.
Its medical cost ratio, the share of premiums paid out in medical expenses, came in at 88.4% versus the 89.9% analysts modeled.
All Three Insurers Topped Q3 Earnings Estimates
Third-quarter 2026 adjusted earnings per share, actual vs consensus, USD
- Actual
- Consensus
Bar chart. EPS (USD). Cigna: Actual $8, Consensus $7.5. UnitedHealth: Actual $4.7, Consensus $4.1. Elevance: Actual $7, Consensus $4.7.
Source: Yahoo Finance, CNBC, Investing.com
The insurer is stabilizing margins by shrinking membership and exiting unprofitable contracts, while leaning on value-based care and artificial intelligence.
Hospital admissions for acute care ran 15% below the prior year through the third quarter, and home health admissions climbed 10%.
Costs haven't vanished. Chief financial officer Wayne DeVeydt said the independent dispute resolution process under the No Surprises Act is adding at least 1 percentage point to total medical costs, with inpatient and specialty pharmacy spending still elevated.
DeVeydt said medical cost trends still warrant watching even as the medical care ratio improves.
The managed care margin recovery has a longer record.
Elevance joins the raise
Elevance Health kept the run going, with adjusted earnings of $6.99 against a $4.70 consensus and operating revenue of $50.4B, up 0.7%.
Its benefit expense ratio improved 70 basis points to 90.6% on better Medicare Advantage and Individual Affordable Care Act results, and 2026 guidance moved to at least $29.00.
Membership shows the trade-off behind the margins, with 44.9M medical members as of Sept. 30, down 487K from a year earlier.
The 2027 Medicare Advantage plan changes have their own explainer.
Chief executive Gail K. Boudreaux pointed to stronger execution across the portfolio and a 2027 baseline of at least $26.75.
For investors, the sector's profits are being rebuilt on price and fewer members, not on growth.
