AI Takeaway
Cigna Group (CI) delivered solid Q1 2026 results with revenue up 4.6% YoY to $68.5B and net income surging 25.0% to $1.65B, though operating cash flow declined sharply by 41.1% and cost of revenue grew faster than revenue at 11.8%.
Revenue
$68.49B
++4.57% YoY
EPS (Basic)
$6.30
++29.10% YoY
Operating Income
$2.36B
++19.63% YoY
Filed · Source: SEC EDGAR 10-Q filing
Total revenue increased 4.6% YoY to $68.5B in Q1 2026 from $65.5B in Q1 2025, reflecting continued expansion across Cigna's health services and pharmacy benefit management segments.
Source: Source: 10-Q Income Statement
Net income rose 25.0% YoY to $1.65B, with diluted EPS jumping 29.1% to $6.26 from $4.85, indicating meaningful operating leverage and potentially favorable mix shifts or one-time items benefiting profitability.
Source: Source: 10-Q Income Statement
Cost of revenue grew 11.8% YoY to $54.1B, significantly faster than the 4.6% revenue growth, compressing gross profit and suggesting rising medical costs or pharmacy benefit costs that management must manage carefully.
Source: Source: 10-Q Income Statement
2 more insights available
Upgrade to unlockCigna's current ratio stands at 0.82, meaning current liabilities of $52.6B exceed current assets of $43.0B. This below-1.0 ratio indicates the company may face challenges meeting short-term obligations without accessing credit facilities or generating additional cash flows.
Source: Source: 10-Q Balance Sheet
Unlock 4 more detailed risk analysis
Upgrade to unlockReported EPS of $7.79 versus the $7.84 analyst consensus — a -0.7% miss for Q1 FY2026.
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $68.49B | $65.5B | +4.57% |
Cost of Revenue | $54.1B | $48.4B | +11.78% |
Operating Income | $2.36B | $1.97B | +19.63% |
Net Income | $1.65B | $1.32B | +25.02% |
EPS (Basic) | $6.30 | $4.88 | +29.10% |
EPS (Diluted) | $6.26 | $4.85 | +29.07% |
SG&A Expense | $3.72B | $4.21B | -11.65% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $153.27B | $150.66B | +1.73% |
Current Assets | $43.03B | $43.55B | -1.20% |
Total Liabilities | $110.82B | $110.24B | +0.53% |
Current Liabilities | $52.61B | $55.74B | -5.63% |
Stockholders' Equity | $42.21B | $40.23B | +4.93% |
Cash & Equivalents | $7.04B | $8.33B | -15.53% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash Flow | $1.13B | $1.92B | -41.09% |
Investing Cash Flow | $-637M | $1.2B | -153.22% |
Financing Cash Flow | $-1.14B | $-3.68B | +69.00% |
Share Buybacks | $0 | $1.51B | -100.00% |
D&A | $650M | $674M | -3.56% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Margin | 3.4% | 3.0% | +0.43% |
Net Margin | 2.4% | — | — |
ROE | 3.9% | — | — |
ROA | 1.1% | — | — |
Current Ratio | $0.818 | — | — |
Debt to Equity | $2.626 | — | — |
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Cigna reported Q1 2026 revenue of $68.5B (up 4.6% YoY) and net income of $1.65B (up 25.0% YoY), with diluted EPS of $6.26 versus $4.85 in Q1 2025. The strong bottom-line growth was supported by a significant 11.7% reduction in SG&A expenses, though cost of revenue grew faster than revenue at 11.8%.
The key takeaways are strong EPS growth of 29.1% to $6.26, meaningful operating margin expansion to 3.44%, and effective SG&A cost control. However, concerns include a sharp 41.1% decline in operating cash flow to $1.13B, a current ratio below 1.0 at 0.82, and cost of revenue growing much faster than revenue.
Yes, Cigna's cost of revenue rose 11.8% YoY to $54.1B, significantly outpacing revenue growth of 4.6%, which compressed gross margins. This trend likely reflects rising medical cost trends or pharmacy benefit costs and is a key risk factor for future quarters if it continues.
Cigna's financial health shows mixed signals: net income and EPS are growing strongly, but the current ratio of 0.82 (below 1.0) and debt-to-equity of 2.63 indicate elevated leverage and near-term liquidity pressure. Cash and equivalents also declined 15.5% YoY to $7.04B, and share buybacks were suspended entirely compared to $1.51B in Q1 2025.
Cigna's operating cash flow fell 41.1% YoY to $1.13B from $1.92B in Q1 2025, a significant divergence from the 25% growth in net income. This gap between reported earnings and cash generation typically points to working capital changes such as timing of claims payments, receivables build-up, or other balance sheet movements that are not detailed in the available filing data.