UPDATED: July 30 at 2:20 p.m. ET
Cigna executives offered investors a look at the progress the company has made in the rollout of its new Signature pharmacy benefits model, which moves away from traditional drug rebates.
CEO Brian Evanko said during the company's earnings call that the team is "making strong progress in the build-out" of the model. It will roll out to Cigna Healthcare's fully insured plans in 2027, before a wider launch in 2028.
Cigna's Evernorth unit first revealed the model in October 2025. Beginning in 2028, it will become the standard offering across Express Scripts' pharmacy benefit management clients, the company said.
In particular, the model is designed around the affordability of brand-name drug products, and the company projects that it could save members 30% per month on branded medications. Through Signature, tech platforms will surface the lowest price to the member at the pharmacy counter, even if that's a cash-pay option or provided by a manufacturer's direct-to-consumer programs.
"We see significant early interest from health plans and employers as we prepare for our broader market launch in 2028," Evanko said. "At the same time, we're adding value and winning business today, with 2027 representing one of our strongest selling seasons in recent years."
Evanko said that the early signs of interest from clients suggests that plan sponsors view Express Scripts as a partner for the long-term in a time when pharmacy benefits are broadly shifting.
For example, the model aligns with industry reforms finalized earlier this year as part of the Consolidated Appropriations Act, which also take effect in 2028.
"With our Signature model, we took it even multiple steps further beyond that regulatory minimum in order to simplify pharmacy benefits for our stakeholders," Evanko said.
And beyond regulatory changes, employers and plan sponsors are facing greater fiduciary obligations that the Signature model makes it easier for them to meet, as the fee-based approach creates greater predictability, he said.
Evanko added that that team believes that, despite the significant change in model, the PBM is still on pace to meet the 4% margin window that investors are expecting.
He said that interest in the model does vary between employers with different types of coverage, as the shift is more disruptive to some than others. However, in the self-funded market, the fiduciary pressures are a pressing concern.
"That's where we see particularly the increasing demands on fiduciary obligations being important and a lot of our clients interested to move to a simple fee-based, transparent model that we've introduced," he said.
PUBLISHED: July 30 at 7:15 a.m. ET
Cigna is raising its outlook for the year after beating the Street on both earnings and revenue in the second quarter of 2026.
The company posted $1.7 billion in profit for the quarter as well as $71.7 billion in revenue, both of which surpassed Wall Street analysts' predictions, according to Zacks Investment Research. By comparison, Cigna earned $1.5 billion in profit and $67.2 billion in revenue in the prior-year quarter.
Through the first six months of the year, revenues were $140.2 billion and profit was $3.3 billion, per the company's earnings report released Thursday morning. In the first half of 2025, the company posted $132.7 billion in revenue and $2.9 billion in profit.
In addition, the company reported a medical loss ratio of 84.5% in the second quarter, up slightly from 83.2% in Q2 2025. Cigna attributed this to larger risk adjustment benefits from individual and family plans in the prior-year quarter.
CEO Brian Evanko said in the announcement that the quarter's results highlight the company's progress toward its key goals and "demonstrate the effectiveness of our strategy and execution." Evanko is hosting the company's earnings as CEO for the first time, after taking the helm on July 1.
"Our purpose is to improve the lives of each and every customer and patient we serve," Evanko said in the press release. "By harnessing technology, data and AI to deliver more personalized experiences, improve access and lower costs, we are creating greater value every day."
At Evernorth, adjusted revenues were $61.5 billion in the quarter, up from $57.8 billion a year ago.
The number of pharmacy benefit customers dipped in the quarter to 118.2 million, and Cigna said this is due to expected client transitions as well as lower membership from its health plan clients.
For Cigna Healthcare, meanwhile, adjusted revenues in Q2 were $11.7 billion compared to $10.8 billion in the prior-year quarter. The company attributed the revenue growth to higher premiums in response to rising medical costs.
Medical membership was 18.4 million in the second quarter, growing slightly from the end of 2025's 18.1 million headcount. Cigna said that the growth was largely seen in the middle and select markets, though that was offset by lower membership seen in bigger national accounts.
Cigna now expects at least $30.45 in earnings per share, up from its Q1 outlook of at least $30.35 in EPS.