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Cigna (CI) Q2 Revenue Jumps 11%
The Motley Fool· 2025-08-01 21:33
Core Insights - Cigna Group reported strong second-quarter earnings for 2025, with revenue reaching $67.2 billion and adjusted diluted EPS at $7.20, surpassing analyst expectations [1][2] - The company experienced broad-based revenue growth driven by its Evernorth Health Services platform, although profit margins moderated due to shifts in customer mix following the divestiture of Medicare-related businesses [1][5] Financial Performance - Adjusted diluted EPS increased by 7.1% year-over-year from $6.72 to $7.20, while revenue grew by 11.1% from $60.5 billion to $67.2 billion [2] - Net income (GAAP) for the quarter was reported at $1.53 billion [5] - The adjusted SG&A expense ratio improved to 4.9% from 6.0%, reflecting enhanced cost efficiency [9] Business Segments - Evernorth Health Services was the primary growth driver, with adjusted revenues increasing by 17% to $57.8 billion and pre-tax adjusted income rising by 5% to $1.70 billion [6] - Cigna Healthcare saw an 18% decline in adjusted revenues year-over-year due to the divestiture of Medicare businesses, but adjusted revenue excluding divestitures rose by 7% [7] Customer Base and Trends - Total customer relationships stood at 182.2 million, with a 2% increase excluding the impact of the HCSC transaction [8] - Pharmacy customer counts grew by 3% to 121.9 million, while the medical customer base declined to 18.0 million [8] Strategic Focus and Innovation - Cigna is focused on digital innovation and operational efficiency, investing in AI and customer experience [4] - The company expanded digital engagement initiatives aimed at managing costs and improving patient outcomes, particularly for high-cost drugs [10] Future Guidance - Cigna reaffirmed its guidance for FY2025, projecting adjusted income from operations of at least $29.60 per share, with segment expectations for Evernorth and Cigna Healthcare set at $7.2 billion and $4.125 billion in pre-tax adjusted income, respectively [12] - The company anticipates a medical care ratio in Cigna Healthcare of 83.2% to 84.2% for FY2025 [12]
Evernorth Launches New Benefit Option That Drives Lower Net Cost for Weight Loss Medicines and Limits Patient Cost to No More Than $200 Per Month
Prnewswire· 2025-05-21 20:30
Patients can save as much as $3600 per year versus direct-to-consumer manufacturer programs, and out of pocket cost applies to their annual deductible New offering helps employers meet growing demand for FDA-approved weight loss medications at a lower net cost per prescription while ensuring clinical safety for patientsST LOUIS, May 21, 2025 /PRNewswire/ -- Evernorth, the health services division of The Cigna Group (NYSE: CI) announced a first-of-its-kind pharmacy benefit offering that make weight loss me ...