Cigna(US:CI) ZACKS·2025-10-30 18:16Core Insights - Cigna Group reported Q3 2025 adjusted EPS of $7.83, exceeding estimates by 1.7% and showing a 4% year-over-year increase [1][9] - Adjusted revenues reached $69.6 billion, a 9% year-over-year rise, surpassing consensus estimates by 3.6% [1][9] Financial Performance - The Evernorth Health Services segment contributed significantly with revenues of $60.4 billion, up 15% year-over-year, driven by new business and client expansion [2][5] - Cigna's medical customer base decreased to 18.1 million, a 5.2% decline year-over-year, attributed to divestitures to HCSC [3][9] - Total benefits and expenses rose 10% year-over-year to $67.2 billion, influenced by higher pharmacy and service costs [4] - Adjusted income from operations was $2.1 billion, down 1% year-over-year due to lower contributions from Cigna Healthcare [4] Segment Analysis - Evernorth Health Services saw adjusted operating income increase by 1% year-over-year to $1.9 billion, aided by organic growth in specialty businesses [6] - Cigna Healthcare's revenues fell 18% year-over-year to $10.9 billion, missing estimates due to the impact of the HCSC transaction [6][9] - The medical care ratio (MCR) deteriorated to 84.8%, a 200 basis point decline year-over-year, due to increased medical costs [7] Financial Position - As of September 30, 2025, Cigna had cash and cash equivalents of $6 billion, a 20.2% decrease from the end of 2024 [8] - Total assets increased to $157.9 billion from $155.9 billion at the end of 2024 [8] - Long-term debt rose to $30.9 billion, a 6.9% increase from December 31, 2024 [10] Capital Deployment - Cigna repurchased shares worth approximately $2.6 billion in the first nine months of 2025 [11] 2025 Outlook - Adjusted EPS is projected to be at least $29.60, indicating a growth of at least 8.3% from 2024 [12] - MCR is expected to remain in the range of 83.2-84.2% [12] - Adjusted operating income for Evernorth Health Services is anticipated to be a minimum of $7.2 billion [12]