Core Viewpoint - Zacks Premium offers tools and resources to help investors make informed decisions and invest confidently in the stock market Group 1: Zacks Style Scores - Zacks Style Scores rate stocks based on value, growth, and momentum characteristics, serving as complementary indicators to the Zacks Rank [2] - Each stock is assigned a rating from A to F, with A indicating the highest potential for outperformance [3] - The Style Scores are categorized into Value Score, Growth Score, Momentum Score, and VGM Score, each focusing on different investment strategies [3][4][5][6] Group 2: Zacks Rank - The Zacks Rank is a proprietary model that uses earnings estimate revisions to help investors build successful portfolios [7] - Stocks rated 1 (Strong Buy) have historically produced an average annual return of +23.83% since 1988, significantly outperforming the S&P 500 [7] - Investors are encouraged to select stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B for optimal success [9][10] Group 3: Company Spotlight - Cigna Corporation - Cigna Corporation, headquartered in Bloomfield, CT, operates under the ticker symbol "CI" and has a Zacks Rank of 3 (Hold) with a VGM Score of A [11] - The company has a Value Style Score of A, supported by a forward P/E ratio of 9.68, making it attractive to value investors [12] - Recent upward revisions in earnings estimates and a Zacks Consensus Estimate increase of $0.05 to $30.41 per share highlight Cigna's potential, along with an average earnings surprise of +2.7% [12]

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 Viewpoint - The article emphasizes the importance of conducting thorough due diligence and research before making any investment decisions, highlighting that past performance does not guarantee future results [2][3]. Group 1 - The author does not hold any stock, options, or similar derivative positions in the companies mentioned and has no plans to initiate such positions in the near future [1]. - The article clarifies that it is not financial advice and that the author is not a licensed financial advisor, urging investors to understand the risks involved in various trading styles [2]. - It is noted that investing in European and non-US stocks may involve specific withholding tax risks, and investors are encouraged to consult tax professionals regarding these matters [2]. Group 2 - The article states that Seeking Alpha's analysts are third-party authors, which may include both professional and individual investors who may not be licensed or certified [3]. - There is a reminder that no recommendations or advice are being given regarding the suitability of any investment for particular investors [3].

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].

分组1 - There is a general concern and distrust of healthcare professionals and their ability to take care of patients [1] - Scott Kaufman, known as Treading Softly, has over a decade of experience in the financial sector and is the lead analyst for Dividend Kings [1] - The focus of the analysis is on identifying high-quality dividend-growing and undervalued investment opportunities to achieve strong total returns [1] 分组2 - The article expresses the author's personal opinions and discloses a beneficial long position in the shares of CI [2] - The Dividend Kings team includes Kody's Dividends, Justin Law, and Rachel Kaufman [2] - Seeking Alpha emphasizes that past performance does not guarantee future results and that the views expressed may not reflect the opinions of the platform as a whole [3]

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]

Financial Data and Key Metrics Changes - The Cigna Group reported full-year adjusted revenue of $275 billion, reflecting an 11% growth year-over-year [8] - Adjusted earnings per share (EPS) for the full year reached $29.84, a 9% increase compared to the previous year [8][17] - The company recorded after-tax special item charges of $483 million, equating to $1.82 per share [4][5] Business Line Data and Key Metrics Changes - Evernorth's specialty and care services business generated $26.7 billion in revenue, marking a 14% year-over-year increase [31] - The pharmacy benefit services business within Evernorth delivered $36.3 billion in revenue, with adjusted earnings of $1.2 billion [31] - Cigna Healthcare achieved adjusted revenues of $11.2 billion in the fourth quarter, with pre-tax adjusted earnings of $734 million [32] Market Data and Key Metrics Changes - The company reported a 13% year-over-year growth in the number of specialty prescriptions [18] - The specialty pharmacy market is projected to grow significantly, with expectations of long-term average annual income growth of 8%-12% [75] - Approximately 90% of all prescriptions filled in the U.S. are generic, contributing to lower overall pharmacy spending [15] Company Strategy and Development Direction - The Cigna Group is focused on evolving its business model to enhance affordability and transparency in healthcare, particularly through a new rebate-free pharmacy benefits model [10][25] - The company aims to leverage partnerships and innovative solutions to improve patient access and lower costs, including collaborations with various healthcare providers [14][22] - Strategic investments in specialty capabilities and care services are intended to position the company for sustainable growth in a rapidly changing environment [8][31] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate a dynamic healthcare landscape, emphasizing a commitment to lowering healthcare costs and improving access to quality care [10][12] - The outlook for 2026 includes projected consolidated adjusted revenues of approximately $280 billion and adjusted EPS of at least $30.25 [33][34] - Management highlighted the importance of addressing underlying cost drivers in healthcare, including rising demand due to chronic conditions and aging populations [11] 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 new pharmacy benefit model is designed to ensure the lowest out-of-pocket costs for consumers and enhance support for local pharmacies [61] Q&A Session Summary Question: Discussion on PBM legislation and margin profile - Management indicated that the margin profile for the pharmacy benefit services (PBM) will remain similar despite the new model and regulatory changes, with a potential maximum impact of 1% on the effective tax rate due to the relocation of GPO capabilities [40][45] Question: Adoption of the new pricing model - The entire Cigna Healthcare fully insured book is expected to adopt the new pricing model by 2027, with at least 50% of the Evernorth business adopting it by the end of 2028 [48][51] Question: Specialty business growth drivers - The specialty business is experiencing strong growth, driven by increased prescriptions and a focus on biosimilars, with expectations for continued momentum in 2026 [75][78]

Financial Data and Key Metrics Changes - The Cigna Group reported full-year adjusted revenue of $275 billion, reflecting an 11% growth year-over-year [6][28] - Adjusted earnings per share (EPS) for the full year 2025 reached $29.84, a 9% increase compared to the previous year [6][30] - The company recorded after-tax special item charges of $483 million, equating to $1.82 per share [3][4] Business Line Data and Key Metrics Changes - Evernorth's specialty and care services business generated $26.7 billion in revenue, marking a 14% year-over-year growth [28] - The pharmacy benefit services business within Evernorth delivered $36.3 billion in revenue, with adjusted earnings of $1.2 billion [28] - Cigna Healthcare achieved adjusted revenues of $11.2 billion in Q4 2025, with pre-tax adjusted earnings of $734 million [30] Market Data and Key Metrics Changes - The company reported a 13% year-over-year growth in the number of specialty prescriptions in 2025 [15] - The specialty pharmacy market is projected to grow significantly, with a $400 billion-plus addressable market growing at a high single-digit secular growth rate [70] Company Strategy and Development Direction - Cigna Group is focused on evolving its business model to enhance customer experience and affordability, including a new rebate-free pharmacy benefits model [10][22] - The company aims to leverage partnerships and innovations to drive down healthcare costs and improve access to medications [11][12] - Strategic investments in specialty capabilities and pharmacy benefit services are intended to position the company for sustained growth [6][28] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate a dynamic healthcare environment and achieve sustained growth [5][13] - The outlook for 2026 includes projected consolidated adjusted revenues of approximately $280 billion and adjusted EPS of at least $30.25 [30][31] - The company anticipates continued investment in infrastructure to support its new pharmacy benefits model, with a focus on affordability and transparency [31][66] 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 [7][8] - Cigna Group returned over $5 billion to shareholders through dividends and share repurchases in 2025 [13] Q&A Session Summary Question: Discussion on PBM legislation and margin profile - Management indicated that the margin profile for the pharmacy benefit services (PBS) will remain similar despite the new model and regulatory changes, with no expected change in the growth algorithm [37][39] Question: Adoption of new pricing model - The entire Cigna Healthcare fully insured book is expected to adopt the new pricing model by 2027, with at least 50% of the Evernorth business adopting it by the end of 2028 [44][48] Question: Specialty business growth drivers - The specialty business experienced 14% top-line growth, driven by strong demand in various therapeutic areas and the increasing adoption of biosimilars [70][71]