As New CEO Takes Charge, Cigna Reports $1.7 Billion Quarterly Profit
Amidst the health insurance industry's struggle with elevated medical costs, The Cigna Group reported robust second-quarter net income of nearly $1.7 billion and a 7% revenue increase to $71.7 billion. This strong showing marks new CEO Brian Evanko's first report. Cigna's medical cost ratio climbed to 84.5%, primarily due to prior year risk adjustments in individual plans, but remains lower than some competitors grappling with higher ratios, especially in government-subsidized markets. Despite these sector-wide pressures, Cigna confidently raised its 2026 earnings outlook to at least $30.45 per share. Evanko emphasized leveraging technology and AI to improve customer experiences and reduce costs.
The Cigna Group Thursday reported second quarter net income of nearly $1.7 billion despite continued elevated medical costs dogging the entire health insurance industry.
The results, which are the first reported under the leadership of new top executive Brian Evanko, figured in the decision to increase the company’s 2026 outlook to “at least $30.45 per share” compared to an earlier forecast of $30.35 per share.
Like its rival health insurers, the company has been battling rising medical expenses from customers in its health plans. Thursday’s results reflected costs that are still rising compared to the year-ago period.
Cigna’s medical cost ratio, which is the percentage of premium revenue that goes toward medical costs, rose to 84.5% for the second quarter of this year compared to 83.2% for the second quarter of 2025, “primarily reflecting higher prior year risk adjustment benefits within our individual and family plans business recognized in second quarter 2025,” Cigna said in its second quarter earnings report.
Though Cigna’s medical cost ratio rose in the second quarter, the percentage wasn’t as high as rivals in the health insurance industry that are seeing medical cost ratios at 90% or more.
Yet Cigna’s medical cost issues are different than those of health insurance industry rivals that have struggled largely in their businesses providing government-subsidized health insurance coverage such as Medicaid benefits for the poor and Medicare Advantage for older adults. Cigna last year completed the sale of its Medicare businesses to Chicago-based Health Care Service Corp. (HCSC), an operator of Blue Cross and Blue Shield plans in five states. And Cigna earlier this year announced plans to exit the individual health insurance business under the Affordable Care Act, also known as Obamacare, in 2027.
On Thursday, Cigna reported second quarter net income rose to $1.66 billion, or $6.29 per share compared to $1.53 billion, or $5.71 per share in the second quarter of 2025, “primarily reflecting growth in Cigna Healthcare.” Total revenues, meanwhile, rose 7% in the second quarter compared to the year-ago period to $71.7 billion “driven by growth in both Evernorth Health Services and Cigna Healthcare.”
“Our purpose is to improve the lives of each and every customer and patient we serve,” said Evanko, who took over as President and Chief Executive Officer of The Cigna Group from David Cordani effective July 1 of this month. “By harnessing technology, data and AI to deliver more personalized experiences, improve access and lower costs, we are creating greater value every day. Our strong second quarter results reflect continued progress against these priorities and demonstrate the effectiveness of our strategy and execution.”