Cigna(CI) - 2025 Q3 - Quarterly Results

Financial Performance - The Cigna Group reported third quarter 2025 total revenues of $69.7 billion, a 10% increase compared to $63.7 billion in the same quarter of 2024[5]. - Shareholders' net income for the third quarter 2025 was $1.9 billion, or $6.98 per share, compared to $0.7 billion, or $2.63 per share, in the third quarter of 2024[3]. - Adjusted income from operations for the third quarter 2025 was $2.1 billion, or $7.83 per share, slightly up from $2.1 billion, or $7.51 per share, in the third quarter of 2024[4]. - The diluted earnings per share for Q3 2025 was $6.98, compared to $2.63 in Q3 2024, representing a substantial increase of 165.4%[39]. - Adjusted revenues for the nine months ended September 30, 2025, were $202,156 million, compared to $181,416 million for the same period in 2024, indicating a year-over-year increase of 11.4%[38]. - Adjusted income from operations for the nine months ended September 30, 2025, was $5,866 million, compared to $5,896 million for the same period in 2024, a decrease of 0.5%[39]. Customer Metrics - Total pharmacy customers increased by 4% year-over-year to 122.5 million as of September 30, 2025, driven by new sales and expanded relationships[9]. - Total medical customers decreased by 6% year-over-year to 18.1 million, primarily due to the impact of the HCSC transaction[9]. - Total customer relationships as of December 31, 2024, were 179.7 million, with total medical customers at 18.1 million, excluding the impact of the HCSC transaction[30]. - The company operates in over 30 markets globally, maintaining more than 180 million customer relationships[29]. Revenue Breakdown - Evernorth Health Services reported a 15% increase in adjusted revenues to $60.4 billion for the third quarter 2025 compared to the same quarter in 2024[15]. - The adjusted revenues for Cigna Healthcare decreased by 18% year-over-year to $10.8 billion, primarily reflecting the impact of the HCSC transaction[22]. - Cigna Healthcare adjusted revenues for Q3 2025 were $10,755 million, a decrease from $13,163 million in Q3 2024, while adjusted revenues excluding divested businesses were $10,755 million compared to $10,165 million in Q3 2024[34]. - Pharmacy revenues increased to $56,054 million in Q3 2025, up from $48,284 million in Q3 2024, representing a growth of 16.5%[38]. - Total revenues for Q3 2025 reached $69,748 million, compared to $63,694 million in Q3 2024, marking an increase of 9.7%[38]. Operational Metrics - Cigna Healthcare's medical care ratio for the third quarter 2025 was 84.8%, up from 82.8% in the same quarter of 2024[22]. - The gross medical costs payable balance was $4.68 billion as of September 30, 2025, slightly up from $4.64 billion as of June 30, 2025, and down from $5.09 billion as of September 30, 2024[34]. - The SG&A expense ratio on a GAAP basis for Q3 2025 was 4.82%, with enterprise selling, general and administrative expenses of $3,362 million against total revenue of $69.7 billion[34]. - Adjusted SG&A expense ratio for Q3 2025 was 4.43%, with expenses of $3,191 million excluding special items of $171 million[34]. Future Outlook - The Cigna Group reaffirmed its 2025 outlook for adjusted income from operations of at least $29.60 per share[5]. - The Cigna Group's outlook for Evernorth adjusted income from operations for 2025 is at least $7.2 billion[25]. - Cigna Group's outlook for 2025 includes anticipated share repurchases and dividends, but excludes potential effects of future business combinations[31]. - Forward-looking statements regarding 2025 include expectations for adjusted revenues, income from operations, and customer growth, subject to various risks and uncertainties[36][37]. Investment and Equity - The company's shareholders' equity as of September 30, 2025, was $41,805 million, slightly down from $42,095 million as of September 30, 2024[38]. - The company reported net investment income of $233 million in Q3 2025, a significant increase from $85 million in Q3 2024, representing a growth of 174.1%[38]. - Adjusted income from operations is a key profitability measure, excluding net investment gains/losses and special items, but cannot be reconciled to shareholders' net income on a forward-looking basis[30][31]. Transaction Impact - The company completed the sale of its Medicare Advantage and related businesses to Health Care Services Corporation on March 19, 2025, impacting future revenue comparisons[30].