Cigna raises annual profit forecast on strength in specialty drug unit

Shares of the company were down 2.7% in morning trading.

The results are "unlikely to reverse course on investor sentiment looking for a growth engine within Cigna, but we're encouraged by a clean beat and raise," Cantor Fitzgerald analyst Sarah James said.

The company's medical loss ratio, or the percentage of premiums spent on medical care, stood at 84.5% for the quarter, higher than 83.2% last year, but largely in line with analysts' estimates, according to data compiled by LSEG.

The prior-year quarter had benefited from higher risk-adjustment payments in its individual and family plans under Obamacare, Cigna said. Those payments compensate insurers that cover a disproportionate share of sicker members.

The company raised its 2026 adjusted profit forecast by 10 cents to at least $30.45 per share. Analysts, on average, estimate the company's annual earnings at $30.41 per share.