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Cigna Q3 Earnings Beat Estimates on Evernorth Health Unit Strength
ZACKS· 2025-10-30 18:16
Key Takeaways Cigna's Q3 EPS of $7.83 beat estimates and rose 4% year over year on strong segment performance.Evernorth Health Services revenues jumped 15% to $60.4B, led by new business and client expansion.Cigna Healthcare sales fell 18% after divestitures to HCSC, weighing on medical membership and margins.The Cigna Group (CI) reported third-quarter 2025 adjusted earnings per share (EPS) of $7.83, which beat the Zacks Consensus Estimate by 1.7%. The bottom line advanced 4% year over year.Adjusted revenue ...
Centene lifts annual outlook, aims profit growth in 2026, shares rise
Reuters· 2025-10-30 18:10
Centene on Wednesday raised its 2025 adjusted profit forecast and said it looks to grow its earnings next year, sending shares of the health insurer nearly 11% higher. ...
Cigna signals new rebate-free pharmacy model and targets 50% transition by 2028 while reaffirming $29.60 EPS outlook (NYSE:CI)
Seeking Alpha· 2025-10-30 16:37
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Cigna shares plunge as company warns of margin pressure in pharmacy-benefit unit
Invezz· 2025-10-30 15:38
Shares of Cigna Group (CI) tumbled 17% on Thursday after the health insurer warned that profit margins in its pharmacy-benefit-services division are expected to decline over the next two years. The an... ...
SHAREHOLDER NOTICE: Faruqi & Faruqi, LLP Investigates Claims on Behalf of Investors of Molina Healthcare
Globenewswire· 2025-10-30 15:36
Faruqi & Faruqi, LLP Securities Litigation Partner James (Josh) Wilson Encourages Investors Who Suffered Losses In Molina To Contact Him Directly To Discuss Their Options If you purchased or acquired securities in Molina between February 5, 2025 and July 23, 2025 and would like to discuss your legal rights, call Faruqi & Faruqi partner Josh Wilson directly at 877-247-4292 or 212-983-9330 (Ext. 1310). [You may also click here for additional information] NEW YORK, Oct. 30, 2025 (GLOBE NEWSWIRE) -- Faruqi & F ...
Centene (CNC) Climbs 12.5% on Strong FY25 Outlook
Yahoo Finance· 2025-10-30 14:37
We recently published 10 Stocks Defying Wall Street Slump; 8 Hit Fresh Highs. Centene Corp. (NYSE:CNC) is one of the best-performing stocks on Thursday. Centene rallied for a second day on Wednesday, jumping 12.5 percent to close at $37.34 as investor sentiment was bolstered by a higher growth outlook for the full-year 2025, despite a steep net loss in the third quarter of the year. In its latest earnings call, Centene Corp. (NYSE:CNC) said it expects adjusted diluted earnings per share (EPS) for the ful ...
Cigna(CI) - 2025 Q3 - Earnings Call Transcript
2025-10-30 13:30
Financial Data and Key Metrics Changes - The Cigna Group reported revenues of $69.7 billion and adjusted earnings of $7.83 per share for the third quarter of 2025, reflecting sustained growth despite a dynamic market environment [6][33]. - The company recorded a net after-tax special item benefit of $61 million, equating to $0.23 per share [3]. Business Line Data and Key Metrics Changes - Evernorth Health Services achieved revenues of $60.4 billion, with pre-tax adjusted earnings of $1.9 billion, while specialty and care services revenues increased by 10% to $26.3 billion, and pre-tax adjusted earnings rose by 11% to $928 million [33][34]. - Cigna Healthcare reported third quarter revenues of $10.9 billion and pre-tax adjusted earnings of $1 billion, with a medical care ratio of 84.8% driven by an updated view of risk adjustment [35][36]. Market Data and Key Metrics Changes - The company noted that generic drugs account for 90% of all prescriptions in the U.S., with prices being one-third cheaper than in other countries, while brand name medications continue to rise significantly in cost [8][9]. - The median price for new FDA-approved drugs is projected to be approximately $390,000 for a treatment course in 2025, highlighting the affordability challenges in the market [9]. Company Strategy and Development Direction - The Cigna Group is focusing on a new rebate-free model for pharmacy benefits, aiming to improve healthcare affordability and streamline the patient experience [7][12]. - The company is strategically investing in expanding its addressable markets, including a recent investment in Shields Health Solutions to enhance specialty capabilities [6][19]. Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in sustaining growth despite challenges, reaffirming an adjusted EPS outlook of at least $29.60 for 2025 [16][33]. - The company anticipates margin pressure in the pharmacy benefit services segment due to strategic client renewals and investments in the new model, but expects long-term growth to remain strong [15][30]. Other Important Information - The company is committed to supporting independent pharmacists and ensuring fair pricing reimbursements, particularly in rural communities [14]. - Cigna Healthcare's growth is expected to be at the higher end of its long-term targets, with a focus on enhancing affordability and access to care [38]. Q&A Session Summary Question: Clarification on rebate guarantees and renewal pricing - Management clarified that the new rebate-free model is designed to be transparent and fee-based, aligning with regulatory priorities, and that the long-term growth algorithm for Evernorth remains intact despite short-term pressures [45][46]. Question: Magnitude of the 2026 decline in pharmacy benefit services - Management indicated that the decline in pharmacy benefit services income is expected to be driven by large client renewals and transitional investment spending, with specific figures not provided but a directional outline given [58][62]. Question: Adoption likelihood of the new model by employers - Management expressed confidence that the new model will be well-received by employers, emphasizing its benefits in terms of budget certainty and employee satisfaction [68][69]. Question: Profitability of large contracts - Management stated that while large contracts may have lower margin profiles, they do not operate at a loss and are strategically important for the company [73][76].
MOH DEADLINE REMINDER: Molina Healthcare, Inc. Sued for Securities Fraud after 16% Stock Drop -- Contact BFA Law by December 2 Class Action Deadline
Globenewswire· 2025-10-30 13:03
NEW YORK, Oct. 30, 2025 (GLOBE NEWSWIRE) -- Leading securities law firm Bleichmar Fonti & Auld LLP announces that a lawsuit has been filed against Molina Healthcare, Inc. (NYSE: MOH) and certain of the Company’s senior executives for potential violations of the federal securities laws. If you invested in Molina, you are encouraged to obtain additional information by visiting: https://www.bfalaw.com/cases/molina-healthcare-inc-class-action. Investors have until December 2, 2025, to ask the Court to be appoin ...
Cigna Posts Higher Profit, Revenue as Evernorth Business Continues to Grow
WSJ· 2025-10-30 10:31
Core Insights - Cigna Group reported increased profit and revenue in the third quarter, driven by the strong performance of its pharmacy-benefit business, Evernorth [1] Financial Performance - The company experienced higher profit and revenue compared to previous periods, indicating robust financial health [1]
Cigna Profits Hit Nearly $2 Billion Despite Rising Costs
Forbes· 2025-10-30 10:15
Core Insights - Cigna Group reported a third quarter net income of nearly $2 billion, reflecting strong performance despite rising costs in health plans [2][6] - The company's medical cost ratio increased to 84.8% in Q3 2025 from 82.8% in Q3 2024, attributed to individual and family plans and higher stop loss medical costs [4][5] - Total revenues for Cigna rose by 10% to $69.7 billion, driven primarily by Evernorth Health Services and growth in existing client relationships [7] Financial Performance - Cigna's net income for Q3 2025 was $1.9 billion, or $6.98 per share, compared to $0.7 billion, or $2.63 per share, in Q3 2024, which included a one-time non-cash after-tax investment loss of $1.0 billion [6] - The increase in net income indicates effective management and execution of growth strategies in a challenging environment [7] Industry Context - Cigna's medical cost ratio, while rising, remains lower than many competitors in the health insurance industry, which are experiencing ratios of 90% or more [5] - The company has distinct medical cost challenges compared to rivals, particularly those focused on government-subsidized health insurance programs like Medicaid and Medicare Advantage [5]