This story was originally published on Healthcare Dive. To receive daily news and insights, subscribe to our free daily Healthcare Dive newsletter. Dive Brief: Cigna plans to lay off roughly 2,000 employees, just under 3% of the company’s workforce, to cut costs by the end of February. A Cigna spokesperson called the reductions a “difficult decision” that was made “with deliberate care and focus.” The company did not answer questions about what specific roles would be impacted or how much money Cign ...

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The Cigna Group (CI), headquartered in Bloomfield, Connecticut, provides insurance and related products and services. Valued at $78 billion by market cap, the company offers life, accident, disability, supplemental, medicare, and dental insurance products and services. Shares of this healthcare insurance giant have underperformed the broader market over the past year. CI has gained 1.7% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 14%. However, in 2026, CI’s stock rose 6 ...

Core Insights - Cigna reported fourth-quarter income and revenue that surpassed analyst expectations, driven by strong growth in its specialty pharmacy operations, which helped mitigate rising medical costs [1][4] - The company's shares rose over 3% intra-day following the positive results [1] Financial Performance - Cigna's adjusted operating earnings for the quarter were $8.08 per share, exceeding Bloomberg consensus estimates of $7.88 [4] - Adjusted revenue increased by 10% year-over-year to $72.50 billion, significantly above analyst expectations of $69.53 billion [4] - The quarterly medical care ratio rose to 88% from 87.9% a year earlier, surpassing expectations of 87.4%, indicating increased spending on medical care [4] Business Segments - Evernorth, Cigna's division for pharmacy benefit management, saw a 20% year-over-year revenue increase to $36.3 billion, aided by new client additions and growth in the specialty pharmacy unit focusing on high-cost medications [3] - Cigna has shifted its focus away from offering Medicare Advantage plans for individuals aged 65 and older, instead relying more on its pharmacy benefits business and employer-sponsored health plans [2] Future Projections - For fiscal 2026, Cigna anticipates adjusted operating earnings per share of at least $30.25 and adjusted revenue of approximately $280 billion [5] - The company projects a full-year healthcare medical care ratio of 83.0% to 84.7% [5]

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Core Insights - Cigna Group reported fourth-quarter 2025 adjusted EPS of $8.08, exceeding estimates by 2.7% and reflecting a 22% year-over-year increase [1][9] - Adjusted revenues reached $72.5 billion, a 10% year-over-year rise, surpassing consensus estimates by 3.7% [1][9] Financial Performance - The Evernorth Health Services segment significantly contributed to quarterly results, driven by new business and client relationship expansion, alongside strong performance in Pharmacy Benefit Services and improved specialty volumes [2][5] - Cigna's medical customer base stood at 18.1 million, a decline of 5.4% year-over-year, impacted by divestitures to Health Care Services Corporation (HCSC) [3] - Total benefits and expenses increased by 10% year-over-year to $70.1 billion, primarily due to higher pharmacy and service costs [4] - Adjusted income from operations was $2.1 billion, up 16% year-over-year, benefiting from improved contributions from Cigna Healthcare and Evernorth Health Services [4] Segment Performance - Evernorth Health Services recorded revenues of $63.1 billion, a 17% year-over-year increase, exceeding estimates of $59.2 billion [5] - Cigna Healthcare's revenues fell 16% year-over-year to $11.1 billion, although it beat estimates by 2.1% [6] - Adjusted operating income for Cigna Healthcare surged 44% year-over-year to $734 million, despite missing consensus estimates by 2.7% [7] Financial Position - As of December 31, 2025, Cigna had cash and cash equivalents of $7.7 billion, a 1.7% increase from the previous year [8] - Total assets rose to $157.9 billion from $155.9 billion at the end of 2024 [8] - Long-term debt increased by 6.7% to $30.9 billion, while total equity grew by 1.5% to $41.9 billion [10] Capital Deployment - Cigna repurchased shares worth approximately $3.6 billion in 2025 [11] 2026 Outlook - Adjusted EPS is projected to be at least $30.25, indicating a minimum growth of 1.4% from 2025 [12] - Adjusted revenues are expected to reach around $280 billion, reflecting a 1.9% improvement from 2025 [13] - The adjusted SG&A expense ratio is estimated to be around 5% [13]

Core Insights - Cigna Group shares are experiencing a significant increase, driven by various factors including a lawsuit related to insulin pricing and strong financial performance in recent earnings reports [1][3]. Financial Performance - Cigna reported fourth-quarter 2025 revenue of $72.49 billion, exceeding analyst estimates of $69.83 billion, with a year-over-year revenue increase of 10% [3]. - Adjusted earnings per share were $8.08, surpassing analysts' expectations of $7.88 [3]. - Adjusted income from operations rose 16% to $2.15 billion, supported by contributions from Cigna Healthcare and Evernorth Health Services [4]. - Total customer relationships grew by 3% to 188.4 million, driven by new sales and expansion in Pharmacy Benefit Services and Behavioral Care [4]. Customer Metrics - Total pharmacy customers increased by 4% to 123.6 million, while total medical customers decreased by 5% to 18.1 million [5][6]. - Evernorth Health Services' revenues increased by 17% to $63.06 billion, with Pharmacy Benefit Services sales reaching $36.34 billion, up 20% [5]. Future Outlook - Cigna anticipates fiscal 2026 revenues of approximately $280 billion, slightly below the consensus of $283.86 billion [7]. - The company expects adjusted income from operations of at least $7.95 billion, or at least $30.25 per share, compared to the consensus of $30.36 [7]. - The medical care ratio for Cigna Healthcare is projected to be between 83.7% and 84.7%, with medical customers expected to remain around 18.1 million [7]. Dividend Information - Cigna declared a cash quarterly dividend of $1.56 per share, an increase from $1.51 [9]. Stock Performance - Cigna's stock price rose by 3.53% to $281.29 at the time of publication [9].

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Financial Data and Key Metrics Changes - The Cigna Group reported full-year adjusted revenue of $275 billion, reflecting an 11% growth, and adjusted earnings per share of $29.84, a 9% increase [8][30] - The company recorded after-tax special item charges of $483 million or $1.82 per share in the fourth quarter [5] Business Line Data and Key Metrics Changes - Evernorth's specialty and care services business achieved 14% adjusted revenue growth, generating $26.7 billion in revenue [18][31] - The pharmacy benefit services business within Evernorth delivered $36.3 billion in revenue and $1.2 billion in adjusted earnings [31] Market Data and Key Metrics Changes - The company noted a 13% year-over-year growth in the number of specialty prescriptions in 2025 [18] - Cigna Healthcare's adjusted revenues for the fourth quarter reached $11.2 billion, with pre-tax adjusted earnings of $734 million [32] Company Strategy and Development Direction - The Cigna Group is focused on evolving its business model to enhance affordability and transparency, particularly through a new rebate-free pharmacy benefits model [10][25] - The company aims to leverage partnerships and innovations to drive down healthcare costs and improve access to medications [12][22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate a dynamic healthcare environment and emphasized a commitment to lowering healthcare costs [10][17] - The outlook for 2026 includes expected consolidated adjusted revenues of approximately $280 billion and adjusted earnings per share of at least $30.25 [33][38] Other Important Information - The company announced a global settlement with the Federal Trade Commission, which is expected to provide $7 billion in out-of-pocket cost relief over the next 10 years for customers [9] - Cigna's strategic investment in Shields Health Solutions aims to expand specialty capabilities to serve hospitals and health systems [8][31] Q&A Session Summary Question: Discussion on PBM legislation and its economic implications - Management indicated that the margin profile for the pharmacy benefit management (PBM) model is expected to remain similar despite the new legislation and FTC settlement [40][43] Question: Adoption of the new pricing model - The entire Cigna Healthcare fully insured book will adopt the new pricing model by 2027, with at least 50% of the Evernorth business expected to transition by the end of 2028 [48][52] Question: Specialty business growth drivers - The specialty business experienced 14% top-line growth, driven by strong demand in areas such as inflammatory, asthma, and allergy treatments, with expectations for continued growth in the biosimilar market [75][78]