Cigna reported fourth‐quarter adjusted earnings of $8.08 per share, surpassing the Zacks Consensus Estimate of $7.87 and representing a 21.6% increase from $6.64 per share in the year-ago period. Net operating income rose to $2.2 billion, driven by margin expansion in its medical segments and improved underwriting results. Revenues grew 5.4% year-over-year to $46.5 billion, bolstered by membership growth in its commercial health plans and higher premium rates implemented in the current year.

For the full year 2025, Cigna reported net income of $5.9 billion, up 12% from $5.3 billion in 2024, even as medical cost trends accelerated to a 9.8% increase driven by higher utilization and pharmacy spend. Total revenue for 2025 reached $184.3 billion, a 6.1% rise over the prior year, led by gains in its Evernorth pharmacy-benefit management and care coordination unit, which delivered 14% revenue growth to $48.2 billion.

Cigna’s outlook for 2026 forecasts operating earnings per share in a range below consensus estimates, reflecting continued pressure from elevated medical cost trends projected at approximately 8.5% and tighter margins in its global health benefits segment. Management indicated that benefit ratio targets have been revised upward by 50 basis points, and capital deployment plans will prioritize debt reduction and reinvestment in technology to improve cost management.

Cigna’s PBM unit, Express Scripts, agreed to a 10-year Federal Trade Commission settlement requiring elimination of spread pricing, decoupling rebates from list prices and relocating its GPO headquarters from Switzerland to the U.S. Additionally, starting in 2027 the unit must adopt a cost-plus reimbursement model for independent pharmacies with three or fewer locations. The agreement is expected to lower out-of-pocket drug costs for plan sponsors and patients, and enhance transparency in PBM revenue streams.