Cigna Group (The)

Strong Q2 2026 results; raises full-year EPS outlook - Reported Q2 total revenues of $71.7B and adjusted EPS of $7.78 (plus after-tax special items: $153M or $0.58/share). - Raises full-year 2026 adjusted EPS guidance to at least $30.45 (previously lower), citing strong first-half execution while staying prudent. - Earnings cadence expectation: 2H EPS split roughly evenly between Q3 and Q4.

Evernorth momentum (outperformance), driven by Specialty & Care; PBS softer - Evernorth Q2 revenues +6% YoY to $61.5B; pretax adjusted earnings $1.7B (slightly ahead of expectations). - Specialty & Care: pretax adjusted earnings +22% YoY to $1.1B, helped by faster-than-expected adoption of biosimilars and specialty generics, plus improved operating efficiency and Shields Health Solutions contribution. - Notable datapoint: specialty generic penetration exceeded 80% for newer products in the quarter. - Pharmacy Benefit Services (PBS): pretax adjusted earnings $609M, down YoY (expected), impacted by renewals/extensions, and transition investment to the Signature rebate-free model; also GLP-1 growth moderating and some economic shifts from drug mix.

Cigna Healthcare: ahead of expectations; cost trends “high but stable” - Cigna Healthcare Q2 revenues +10% YoY to $11.8B; pretax adjusted earnings $1.3B. - Medical Care Ratio (MCR) 84.5%, slightly favorable to expectations (outpatient/surgical spend favorable vs prior assumptions). - Management characterized cost trends as persistently elevated (high single-digit) without clear acceleration/meaningful break—forward assumptions still assume an elevated cost environment through 2026/2027.