Cigna Group, established in 1792 and headquartered in Bloomfield, Connecticut, provides insurance products and related services across the United States. The company ...
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Operator: Ladies and gentlemen, thank you for standing by for The Cigna Group's Second Quarter 2026 Results Review. As a reminder, ladies and gentlemen, this conference, including the Q&A session, is being recorded. We'll begin by turning the conference over to Ralph Giacobbe. Please go ahead. Ralph Giacobbe: Great. Thank you. Good morning, everyone. Thanks for joining today's call. I'm Ralph Giacobbe, Senior Vice President of Investor Relations. With me on the line this morning are Brian Evanko, The Cigna Group's President and Chief Executive Officer; and Ann Dennison, Chief Financial Officer. In our remarks today, Brian and Ann will cover a number of topics, including our second quarter 2026 financial results and our financial outlook for 2026. Following their prepared remarks, Brian and Ann will be available for Q&A. As noted in our earnings release, when describing our financial results, we use certain financial measures, including adjusted income from operations and adjusted revenues, which are not determined in accordance with accounting principles generally accepted in the United States, otherwise known as GAAP. A reconciliation of these measures to the most directly comparable GAAP measures, shareholders' net income and total revenues, respectively, is contained in today's earnings release, which is posted in the Investor Relations section of thecignagroup.com. We use the term labeled adjusted income from operations and adjusted earnings per share on the same basis as our principal measures of financial performance. In our remarks today, we will be making some forward-looking statements, including statements regarding our outlook for 2026 and future performance. These statements are subject to risks and uncertainties that could cause actual results to differ materially from our current expectations. A description of these risks and uncertainties is contained in the cautionary note to today's earnings release and in our most recent reports filed with the SEC. Regarding our results in the second quarter, we recorded after-tax special item charges of $153 million or $0.58 per share. Details of the special items are included in our quarterly financial supplement. Additionally, please note that when we make prospective comments regarding financial performance, including our full year 2026 outlook, we will do so on a basis that includes the potential impact of future share repurchases and anticipated 2026 dividends. With that, I'll turn the call over to Brian. Brian Evanko: Thanks, Ralph. Good morning, everyone, and thank you for joining our call. I'm pleased to share we delivered strong performance in the second quarter as we continue to execute at a high level, drive results and accelerate momentum across our enterprise. Today, I'll discuss our performance for the quarter and key strategic drivers of our growth and demonstrate how the strength and durable nature of our model is fueling our success. I'll also share some examples of how we …
| Metric | Latest | YoYYoY means Year-over-Year. It compares the latest annual value with the previous annual value to show long-term trend strength. | QoQQoQ means Quarter-over-Quarter. It compares the latest quarter with the immediately previous quarter to show short-term momentum changes. |
|---|---|---|---|
| The total money that came through the front door from selling things, before paying a single bill. Think of it as the grand total of every credit card swipe from customers. (YoY compares this year to last year's performance, while QoQ compares the current three months to the previous three). |
| Name | Title | Compensation | Gender | Year Born | Status |
|---|---|---|---|---|---|
David Michael Cordani | Executive Chairman of the Board | USD 5,439,392 | Male | 1965 | Active |
Brian C. Evanko | President, CEO & Director | USD 3,276,923 |
| Male |
| 1977 |
| Active |
Nicole Susan Jones | Executive Vice President, Chief Administrative Officer & Chief Human Resources Officer | USD 2,033,401 | Female | 1971 | Active |
Ann Dennison | Executive Vice President & Chief Financial Officer | USD 1,884,132 | Female | 1971 | Active |
Durga Prasad Koka | Executive Vice President & Global Chief Information Officer | USD 1,882,243 | Male | — | Active |
F. Everett Neville | Executive VP & Special Advisor to the CEO | USD 1,838,050 | Male | 1965 | Active |
Andrea Nelson | EVP, General Counsel & Corporate Secretary | — | Female | — | Active |
Ralph Giacobbe | Senior Vice President of Investor Relations | — | Male | — | Active |
Jamie Kates | Senior VP & Tax and Global Chief Accounting Officer | — | Female | 1981 | Active |
Melissa Skottegaard | Executive Vice President, Chief Marketing & Communications Officer | — | Female | — | Active |
$6.14 per share
Est. EPS $7.51 · Revenue $72.65B · 14 analysts
Est. EPS $7.42 · Revenue $74.90B · 13 analysts
| $275.0B |
| +11.3% |
| +4.6% |
| Net IncomeThe absolute bottom line. If the company paid every single supplier, employee, banker, and tax collector, this is the actual money left in their pocket at the end of the day. | $6.0B | +73.5% | +0.4% |
| Gross MarginThe basic markup. If they sell a $100 pair of sneakers, this percentage tells you how much of that price tag is profit right after paying for the rubber and shoelaces, but before paying for things like store rent or TV commercials. | +9.5% | -10.0% | +121.1% |
| Operating MarginThe 'day job' efficiency score. Out of every dollar a customer spends, this shows how many cents the company keeps after making the product AND paying for all the everyday corporate overhead (like salaries, marketing, and keeping the lights on). | +3.3% | -12.9% | +8.5% |
| Net MarginThe final take-home percentage. When you strip away every conceivable cost, tax, and interest payment, this is the exact number of cents the company truly gets to keep from every dollar in sales. | +2.2% | +55.9% | -4.1% |
| Free Cash FlowThe holy grail of corporate cash. It's the spendable, physical money left over after the business pays for its daily operations AND buys the big, expensive upgrades (like new factories or servers) it needs to survive. This is the 'free' money they can use to pay dividends or buy back stock. | $8.4B | -6.3% | -183.1% |
| FCF MarginThe ultimate cash conversion rate. It shows how good the company is at turning regular sales directly into cold, hard, spendable cash. A high percentage means the business is an absolute cash-printing machine. | +3.1% | -15.8% | -179.4% |
| Debt / EquityThe financial risk gauge. It compares how much of the company's empire was built using borrowed money (loans) versus the owners' own money (shareholders). A high number means they are heavily leveraged and playing a riskier game; a low number means they are playing it safe. | 75.4% | -3.2% | +2.2% |
| Current RatioThe 12-month survival check. It simply compares the cash they have right now (plus things they can quickly turn into cash) against the immediate bills they absolutely must pay this year. A score above 1 means they have enough in the wallet to cover the upcoming bills without panicking. | 0.85x | +0.7% | +3.4% |
| Total AssetsThe absolute size of the company's empire. It bundles together absolutely everything of value they own—from the cash in the register and the inventory in the warehouse, to the software patents in the vault and the factories on the ground. | $157.9B | +1.3% | +2.5% |
| Metric | Annual (A vs E) | Annual Surprise | Quarter (A vs E) | Quarter Surprise |
|---|---|---|---|---|
| EPS Surprise | 22.17 vs 29.66 | -25.3% | 6.29 vs 7.51 | -16.2% |
| Revenue Surprise | $275.0B vs $272.3B | +1.0% | $71.7B vs $72.6B | -1.3% |
| Date | Executive | Title | Security | Side | Shares | Price |
|---|---|---|---|---|---|---|
| Mar 1, 2027 | Holgerson Bryan | officer: See Remarks | Employee Stock Option (Right to Buy) | — | 4,221 | $287.55 |
| Mar 1, 2027 | Kautzner Adam | officer: See Remarks | Employee Stock Option (Right to Buy) | — | 5,628 | $287.55 |
| Mar 1, 2027 | Sadler Jason D | officer: See Remarks | Employee Stock Option (Right to Buy) | — | 3,564 | $287.55 |
| Mar 1, 2027 | Perlberg Matthew | officer: See Remarks | Employee Stock Option (Right to Buy) | — | 4,643 | $287.55 |
| Mar 1, 2027 | Nelson Andrea L | officer: EVP, General Counsl & Corp Sec | Employee Stock Option (Right to Buy) | — | 1,829 | $287.55 |
