Cigna Reports Strong Q3 Results, Reaffirms 2025 Outlook Amid PBM Business Pressures

The Cigna Group has announced robust financial results for the third quarter of 2025, posting a significant increase in profit and beating Wall Street expectations. The health services company reaffirmed its full-year outlook while navigating challenges in its pharmacy benefit management (PBM) business.

Q3 Financial Highlights

Cigna reported a profit of $1.9 billion for the third quarter, a substantial increase from the $739 million recorded in the same period last year. This performance surpassed analysts' predictions, as per Zacks Investment Research. Revenue for the quarter reached $69.7 billion, up from $63.7 billion in Q3 2024, also exceeding Street estimates.

For the first nine months of 2025, Cigna's revenue totaled $202.4 billion, with profits of $4.7 billion. These figures represent a significant improvement over the same period in 2024, when the company reported $181.5 billion in revenue and $2 billion in profit.

David Cordani, CEO of The Cigna Group, commented on the results: "Our strong quarterly results reflect the breadth of our businesses and focused execution on our growth strategy, even in a dynamic environment. We continue to lead positive change and are addressing some of healthcare's biggest challenges."

Segment Performance and Challenges

Cigna Healthcare, the company's insurance arm, experienced a revenue decline of 18% to $10.8 billion, primarily attributed to the sale of its Medicare Advantage plans to Health Care Service Corporation. Excluding this divestiture, the segment's revenues grew by 6% year-over-year.

The company's medical loss ratio increased slightly to 84.8%, driven by higher costs in the individual and family segment and medical costs in stop-loss coverage. Despite these pressures, Cigna maintains a relatively stable position due to its lower exposure to government insurance programs compared to its peers.

Evernorth, Cigna's health services division, saw a 15% increase in revenue to $60.4 billion. The PBM unit within Evernorth reported an 18% revenue growth, with pharmacy membership rising to 122.5 million in the third quarter.

Outlook and Strategic Focus

Based on its strong performance, Cigna has reaffirmed its earnings per share expectation of at least $29.60 for the full year 2025. The company continues to focus on its growth strategy and addressing healthcare challenges, as evidenced by recent initiatives such as Express Scripts' shift away from traditional PBM rebates.

As the healthcare landscape evolves, Cigna's diversified business model and strategic adaptations position the company to navigate industry pressures while maintaining strong financial performance.