Cigna Reports $1.32 Billion Profit, Raises FY2025 Outlook

Cigna Group reported a return to profitability in the first quarter of 2025, posting net income of $1.32 billion and revenue growth of 14% to $65.5 billion, both exceeding analyst expectations. The company’s strong performance was attributed to robust growth in its Evernorth Health Services unit, particularly in its pharmacy benefit management business and specialty pharmacy segment, as well as lower-than-expected medical costs compared to sector peers. Cigna raised its full-year adjusted earnings outlook to at least $29.60 per share, aligning with or slightly above analyst forecasts. The company’s medical care ratio increased to 82.2% due to higher stop-loss insurance costs and the delayed closure of its Medicare business sale, but these Medicare-related costs are expected to diminish moving forward. Unlike some competitors, Cigna is less exposed to the rising costs in Medicare Advantage plans, following the divestiture of its Medicare business. Overall, Cigna’s financial outlook appears more promising for the remainder of 2025, supported by continued growth in key business segments.