Research Alert: Cigna: Mcr Improvement Supports Q1 Eps Beat, Guidance Raise
CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:CI reported Q1 2026 adjusted EPS of $7.79 (+16% Y/Y), beating the $7.61 consensus and prompting a $0.10 raise to annual EPS guidance. Total revenues rose 5% Y/Y to $68.5B, due to Evernorth Health Services' growth of 9% Y/Y to $58.4B, while Cigna Healthcare's revenues fell 21% Y/Y reflecting the Medicare business divestiture. The strong Evernorth performance, including 11% Y/Y growth in Pharmacy Benefit Services due to favorable drug mix and 6% Y/Y growth in Specialty and Care Services, supports the company's strategic pivot toward higher-margin services. Management maintained Medical Care Ratio guidance at 83.7%-84.7% for 2026, demonstrating continued cost discipline amid operational improvements. Operational efficiency improved with its SG&A expense ratio declining 100bps to 5.4%, while Cigna Healthcare pre-tax margins expanded 430bps to 13.2% and the Medical Care Ratio improved to 79.8% from 82.2%, primarily benefiting from the Medicare divestiture.