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Cigna
(NYSE:CI)
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Rating:74Outperform
Price Target:
$323.00
▲(11.54% Upside)
Action:Reiterated
Date:07/31/26
The score is driven primarily by solid financial performance (strong scale and cash generation despite margin pressure) and a favorable valuation (low P/E with a meaningful dividend). Earnings-call takeaways are supportive due to raised EPS guidance, though PBS profitability pressure and special items temper optimism. Technicals are moderately positive overall but show some near-term softness with the stock below its 20-day average.
Positive Factors
Consistent cash generation
Cigna's steady operating and free cash flow conversion (~0.84–0.87 of net income) is a durable strength. Reliable cash generation supports reinvestment, dividend and buyback programs, and gradual deleveraging, providing financial flexibility through business-cycle swings over the next 2-6 months and beyond.
Negative Factors
PBS earnings pressure from transition
PBS saw a 28% decline in pretax adjusted earnings due to client renewals and transition investments for the Signature model. This reflects a durable near-to-medium-term profitability headwind: PBM margin conversion and client timing risk may compress segment earnings until the new pricing model scales and client mixes normalize.
Read all positive and negative factors
Positive Factors
Negative Factors
Consistent cash generation
Cigna's steady operating and free cash flow conversion (~0.84–0.87 of net income) is a durable strength. Reliable cash generation supports reinvestment, dividend and buyback programs, and gradual deleveraging, providing financial flexibility through business-cycle swings over the next 2-6 months and beyond.
Read all positive factors
Cigna Key Performance Indicators (KPIs)
Any
External Customers Revenue by Type
Shows revenue generated from different types of external customers, highlighting which customer segments are most lucrative and where there may be opportunities for growth or diversification.
Shows revenue generated from different types of external customers, highlighting which customer segments are most lucrative and where there may be opportunities for growth or diversification.
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The Fly
The FlyCigna (CI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$73.56B
Dividend Yield2.24%
Average Volume (3M)1.58M
Price to Earnings (P/E)11.3
Beta (1Y)0.26
Revenue Growth8.15%
EPS Growth31.47%
CountryUS
Employees66,685
SectorHealthcare
Sector Strength45
IndustryMedical - Healthcare Plans
Share Statistics
EPS (TTM)24.25
Shares Outstanding264,240,480
10 Day Avg. Volume1,695,210
30 Day Avg. Volume1,576,466
Financial Highlights & Ratios
PEG Ratio0.15
Price to Book (P/B)1.75
Price to Sales (P/S)0.27
P/FCF Ratio8.73
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$346.00Price Target Upside19.49% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering17
EPS Forecast (FY)30.49
Revenue Forecast (FY)$287.10B
Cigna Business Overview & Revenue Model
Company Description
Cigna Group, established in 1792 and headquartered in Bloomfield, Connecticut, provides insurance products and related services across the United States. The company operates through two primary segments. Its Evernorth division offers a comprehens...
How the Company Makes Money
Cigna primarily generates revenue through (1) health insurance and related medical benefit products and (2) health services, especially pharmacy benefit management (PBM) and specialty pharmacy. In its Cigna Healthcare segment, it makes money by co...
Cigna Earnings Call Summary
Earnings Call Date:Apr 30, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Oct 29, 2026
Earnings Call Sentiment Positive
The call conveyed strong operational and financial momentum: consolidated revenue and EPS growth, a raised full-year EPS outlook, robust specialty and Cigna Healthcare performance, and meaningful innovation (rebate-free pharmacy model and AI-enabled savings). Primary headwinds centered on near-term PBS earnings pressure (28% decline) due to renewals and transition investments, a material special-items charge ($322M after-tax), and portfolio exits/strategic reviews that reduce near-term scope. Management presented these challenges as deliberate and manageable trade-offs to sharpen focus and accelerate long-term value creation.Positive Updates
Strong Consolidated Results and Raised Guidance
Total revenues of $68.5 billion and adjusted EPS of $7.79 in Q1 2026 (16% year-over-year EPS growth). Company raised full-year 2026 adjusted EPS outlook to at least $30.35.
Negative Updates
Pharmacy Benefit Services (PBS) Earnings Decline
PBS pretax adjusted earnings decreased 28% year-over-year to $394 million (a decline of about $150 million in the quarter), driven by large client renewals/extensions and investments to transition to the new rebate-free Signature model.
Read all updates
Q1-2026 Updates
Positive
Negative
Strong Consolidated Results and Raised Guidance
Total revenues of $68.5 billion and adjusted EPS of $7.79 in Q1 2026 (16% year-over-year EPS growth). Company raised full-year 2026 adjusted EPS outlook to at least $30.35.
Read all positive updates
Company Guidance
Cigna raised full‑year 2026 adjusted EPS guidance to at least $30.35 after a strong Q1 that delivered total revenues of $68.5B and adjusted EPS of $7.79 (16% YoY); Q1 included after‑tax special charges of $322M ($1.22/sh). Evernorth Q1 revenues rose 9% to $58.4B with pretax adjusted earnings up 2% to $1.5B (Specialty & Care Services pretax adj. earnings +20% to $1.1B; Pharmacy Benefit Services pretax adj. earnings -28% to $394M, ≈$150M decline YoY) and Evernorth full‑year adjusted income from operations is expected to be at least $6.9B (Q2 pretax seasonality similar to historical patterns). Cigna Healthcare posted Q1 revenues of $11.5B and pretax adjusted earnings of $1.5B, with a Q1 medical care ratio of 79.8% and full‑year pretax adjusted earnings guidance of at least $4.525B (first half slightly above 60% of the full year; full‑year MCR guidance unchanged at 83.7%–84.7%; Q2 MCR expected slightly above the high end). Capital and cash metrics: Q1 operating cash flow was $1.1B, debt‑to‑capital was 42.3% (improved 70 bps vs. year‑end 2025) and the company expects most 2026 operating cash flow in H2 and a lower debt‑to‑capital by year‑end; longer‑term PBM transition targets include at least 50% of PBS members on the new rebate‑free Signature model by year‑end 2028.Cigna Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
71
Positive
Cash Flow
78
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 282.38B | 274.95B | 247.12B | 195.26B | 180.52B | 174.07B |
| Gross Profit | 32.93B | 25.99B | 25.96B | 25.18B | 23.50B | 22.95B |
| EBITDA | 11.77B | 11.61B | 11.45B | 10.85B | 10.44B | 9.96B |
| Net Income | 6.42B | 5.96B | 3.43B | 5.16B | 6.70B | 5.37B |
Balance Sheet | ||||||
| Total Assets | 157.08B | 157.92B | 155.88B | 152.76B | 143.88B | 154.89B |
| Cash, Cash Equivalents and Short-Term Investments | 6.30B | 7.68B | 8.21B | 8.75B | 6.83B | 6.00B |
| Total Debt | 31.88B | 31.46B | 31.97B | 30.93B | 31.55B | 34.27B |
| Total Liabilities | 114.17B | 116.05B | 114.64B | 106.41B | 98.98B | 107.70B |
| Stockholders Equity | 42.62B | 41.71B | 41.03B | 46.22B | 44.87B | 47.11B |
Cash Flow | ||||||
| Free Cash Flow | 9.11B | 8.39B | 8.96B | 10.24B | 7.36B | 6.04B |
| Operating Cash Flow | 10.28B | 9.60B | 10.36B | 11.81B | 8.66B | 7.19B |
| Investing Cash Flow | -5.95B | -4.41B | -2.10B | -5.17B | 3.10B | -3.61B |
| Financing Cash Flow | -2.34B | -6.42B | -7.65B | -4.29B | -11.24B | -8.21B |
Cigna Technical Analysis
Negative
289.57
Price Trends
285.57
Negative
281.11
Negative
277.09
Positive
Market Momentum
-2.63
Positive
45.54
Neutral
38.05
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CI, the sentiment is Negative. The current price of 289.57 is above the 20-day moving average (MA) of 285.98, above the 50-day MA of 285.57, and above the 200-day MA of 277.09, indicating a neutral trend. The MACD of -2.63 indicates Positive momentum. The RSI at 45.54 is Neutral, neither overbought nor oversold. The STOCH value of 38.05 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CI.
Cigna Risk Analysis
Cigna disclosed 27 risk factors in its most recent earnings report. Cigna reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Cigna Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $73.56B | 11.29 | 15.24% | 2.12% | 8.15% | 31.47% | |
70 Outperform | $366.88B | 25.86 | 14.40% | 2.13% | 6.46% | -32.89% | |
68 Neutral | $86.25B | 17.35 | 11.24% | 1.82% | 6.27% | -4.37% | |
63 Neutral | $46.31B | 35.01 | 6.91% | 0.91% | 18.33% | -18.53% | |
62 Neutral | $122.36B | 24.41 | 6.43% | 2.47% | 7.41% | 6.51% | |
60 Neutral | $32.89B | -6.24 | -24.03% | ― | 13.89% | -356.11% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
CI
Cigna
273.87
-0.52
-0.19%
CNC
Centene
64.88
38.71
147.92%
CVS
CVS Health
93.50
30.01
47.26%
HUM
Humana
372.82
101.79
37.56%
UNH
UnitedHealth
402.19
147.44
57.88%
ELV
Elevance Health
390.37
103.91
36.27%
Cigna Corporate Events
Business Operations and StrategyFinancial Disclosures
Cigna Reaffirms 2026 Outlook and Profitability Targets
Positive
May 13, 2026
The Cigna Group said it will reaffirm its previously issued 2026 outlook as executives meet with investors and analysts in the coming weeks. The company continues to project full-year 2026 consolidated adjusted income from operations of at least $...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.