Cigna Stock Dives On Q4 Earnings Miss: 'We Are Taking Corrective Actions To Address These Near-Term Pressures'

Cigna Group CI reported fourth-quarter financial results before the market open on Thursday. Here’s a look at the key details from the quarter.

Q4 Earnings: Cigna reported fourth-quarter revenue of $65.68 billion, beating analyst estimates of $63.36 billion, according to Benzinga Pro. The company reported fourth-quarter adjusted earnings of $6.64 per share, missing analyst estimates of $7.82 per share.

Total revenue was up 27% on a year-over-year basis. Pharmacy benefit services revenue totaled $30.27 billion, up from $20.55 million in the prior year’s quarter. Specialty care and services revenue came in at $23.47 billion, up from $19.97 billion year-over-year. Cigna Healthcare revenue totaled $13.33 billion, up from $13 billion year-over-year.

Adjusted income from operations declined 8% year-over-year, primarily driven by lower contributions from Cigna Healthcare due to higher stop loss medical costs.

“While higher medical costs in our stop loss product impacted fourth quarter earnings, we are taking corrective actions to address these near-term pressures and we are simultaneously taking steps to further advance our long-term growth strategy,” said David Cordani, chairman and CEO of The Cigna Group.

“Through a dynamic environment, we are continuing to focus on building a sustainable model for healthcare by addressing the areas that matter most to our patients and clients, including greater transparency, support, and value.”

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Cigna’s board approved an increase of $6 billion to the company’s share repurchase program, bringing its total authorization up to $10.3 billion.

Outlook: Cigna expects full-year 2025 revenue of at least $252 billion, versus estimates of $251.95 billion, according to Benzinga Pro. The company anticipates full-year adjusted earnings of at least $29.50 per share, versus estimates of $31.50 per share.

Management is currently discussing the quarter on a conference call with analysts and investors that kicked off at 8:30 a.m. ET.

CI Price Action: Cigna Group shares were down 11.1% at $269.63 at the time of publication Thursday, per Benzinga Pro.

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