CI & LH Quick Takes

Research evidence excerpt

CI & LH Quick Takes

Update

July 30, 2026 12:22 PM GMT

Morgan Stanley & Co. LLCMHealthcare Services | North America Erin Wright

Equity Analyst

CI & LH Quick Takes Erin.Wright1@morganstanley.comMichelle Foley +1 212 761-6137

Research Associate

Michelle.Foley@morganstanley.com +1 212 761-4056

With multiple EPS prints this morning, we summarize KPIs for CI Linda Bolduc

& LH, including quarterly variance tables, updated annual EquityLinda.Bolduc@morganstanley.comAnalyst +1 617 856-8009

guidance and 2H implied guidance. Net/net, there was something Derek Gross

for the Bulls and the Bears in both headline prints, with conf. call Derek.Gross@morganstanley.com +1 212 761-2455

commentary key. Both stocks may ebb. Craig Hettenbach

Craig.Hettenbach@morganstanley.com +1 212 761-6435

Please see guidance and more detailed variance tables enclosed.

Jialin Jin

CI – Today's print may not be enough for the stock to work given the MLR miss Jay.Jin@morganstanley.com +1 212 761-3913

vs. Cons, amid ongoing PBM debates (but Specialty continues to be a bright spot

Healthcare Services & Distribution

and arguably should get more credit). 2Q EPS beat the Street by +18c, though North America

MLR missed by ~20bps. CI raised its EPS floor by 10c (not fully reflecting the beat) Industry View Attractive

and left MLR guide unchanged at 83.7-84.7%. Evernorth came in slightly better vs.

expectations, albeit AOI is still declining as PBM decreased 27% on previously

disclosed transition initiatives. However, Specialty increased 22% on generic/

biosimilar adoption and presumably private label initiatives there on (see our NDR

note here). The PBM transition remains top of mind and has been a sticking point as

investors await more clarity, which likely will not come until later this year when the