Executives touted the quarter as evidence that Cigna is well-positioned for another year of profitable growth in 2027. Though, its pharmacy benefits manager Express Scripts is a drag.

The third quarter — CEO Brian Evanko’s first full quarter as chief executive, after David Cordani retired in July — was solid, analysts said.

Cigna Healthcare, the company’s health insurance business that covers 18.5 million people, drove the bulk of the upside, as medical costs remained elevated but were more than covered by premium hikes Cigna secured coming into this year.

The division reported a medical loss ratio, an important marker of spending on patient care, of 85% — slightly better than analysts expected, though a sliver higher than the 84.8% Cigna notched in the same quarter last year. Lower is better for MLR.

Still, Cigna Healthcare reported adjusted operating income of $1.2 billion, up 15% year over year, thanks to improved operational efficiencies and higher investment income.

“The work we’ve done over several years to deliberately shape our portfolio is delivering results,” Evanko said.

Meanwhile, Evernorth — Cigna’s massive health services division, which includes pharmacy benefit manager Express Scripts and specialty pharmacy Accredo — reported $1.8 billion in adjusted operating income, down 4% year over year.

Earnings in Cigna’s specialty segment — one of its fastest-growing businesses — were up 15% year over year, despite revenue only increasing 1%, thanks to stronger adoption of cheaper biosimilar and specialty generic drugs. On the call, Evanko called out Revlimid, a widely used drug that treats several types of blood cancers and bone marrow disorders.

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