01—Abstract
Summary
Summary of the 10-K filed February 26, 2026. Cited figures are marked; the original filing is the authoritative source.
The Cigna Group's 2025 10-K filing highlights a strong financial performance, with shareholders' net income increasing by 73%a year-over-year, primarily driven by the absence of a prior year impairment charge.
Adjusted income from operations also saw a healthy 4%b increase, reflecting the company's ongoing operational efficiency and strategic initiatives. The divestiture of its Medicare Advantage and related businesses to HCSC in March 2025 contributed to a decrease in medical customers but also led to a significant cash inflow and strategic realignment. Evernorth Health Services continues to be a strong performer, with adjusted revenues up 16% and pre-tax adjusted income from operations increasing by 3%, driven by growth in Pharmacy Benefit Services and Specialty and Care Services.
Cigna Healthcare experienced a revenue decline of 11%c, largely due to the HCSC divestiture, though the ongoing U.S. Healthcare businesses saw improvement in premiums. The company is also investing in innovation, including a rebate-free pharmacy benefits model, which is expected to impact short-term earnings but enhance long-term value and transparency.
02—Key points
Key Highlights
- Shareholders' net income surged by 73% to $5.96 billion in 2025, largely due to the absence of a significant impairment charge recorded in the prior year.
- Adjusted income from operations increased by 4% to $8.01 billion, demonstrating continued underlying business strength.
- Evernorth Health Services showed robust growth, with adjusted revenues up 16% to $235 billion and pre-tax adjusted income from operations rising 3% to $7.22 billion.
- Cigna Healthcare's adjusted revenues decreased by 11% to $47.16 billion, primarily impacted by the divestiture of its Medicare Advantage and related businesses.
- The company completed the sale of its Medicare Advantage and related businesses to HCSC in March 2025 for $4.9 billion, as part of its strategic portfolio optimization.
- The Cigna Group is investing in a new rebate-free pharmacy benefits model, expected to lower medication costs and improve transparency, with an anticipated annualized after-tax savings of at least $500 million.
- Total medical customers decreased by 5%, primarily reflecting the impact of the HCSC transaction.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2025, Cigna Group kept $0.02.
- Revenue$274.90B100.0%
- Cost of revenue−$214.99B78.2%
- Gross profit$59.91B21.8%
- Operating costs−$50.71B18.4%
- Operating income$9.20B3.3%
- Interest, other & tax−$2.91B1.1%
- Net income$6.29B2.3%
Where FY2025 revenue went
$274.90B- Cost of revenue: $214.99B, 78% of revenue
- Other operating costs: $36.09B, 13% of revenue
- Net income: $6.29B, 2.3% of revenue
- SG&A: $14.62B, 5.3% of revenue
- Interest, other & tax: $2.91B, 1.1% of revenue
Kept 2.3% as net incomeNet income $6.29B · 2.3%
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2025filed February 26, 2026Financial Statements
FY2025 against FY2024
| Line item | FY2025FY2024 | Change |
|---|---|---|
| Revenue | $274.90B$247.12B | +11.2% |
| Cost of Revenue | $214.99B$182.51B | +17.8% |
| Gross Profit | $59.91B$64.61B | −7.3% |
| SG&A Expenses | $14.62B$14.84B | −1.5% |
| Operating Income | $9.20B$9.42B | −2.3% |
| Interest Expense | $1.40B$1.50B | −6.7% |
| Net Income | $6.29B$3.43B | +83.1% |
| EPS (Basic) | $22.33$12.25 | +82.3% |
| EPS (Diluted) | $22.18$12.12 | +83.0% |
| Shares Outstanding (Diluted) | 268.56M283.22M | −5.2% |
05—Questions
Frequently Asked Questions
What was the primary driver of the significant increase in shareholders' net income in 2025?
The significant increase in shareholders' net income was primarily driven by the absence of a substantial impairment charge related to equity securities that was recognized in the prior year (2024). This non-recurring item significantly boosted the current year's net income.
How did the divestiture of the Medicare Advantage business impact Cigna Healthcare's financial results?
The divestiture of the Medicare Advantage and related businesses to HCSC in March 2025 led to a substantial decrease in Cigna Healthcare's adjusted revenues by 11% ($5.75 billion). This was partially offset by higher premiums in the remaining U.S. Healthcare businesses. While impacting overall segment revenue, this divestiture was a strategic move to refine the company's portfolio.
What is Cigna's strategy regarding the new rebate-free pharmacy benefits model?
Cigna is implementing a new rebate-free pharmacy benefits model aimed at making negotiated discounts with drug companies available upfront to customers, thereby lowering their costs at the point of sale. This model is expected to improve transparency and support local pharmacies. While it will incur investment and transition costs in the short term, it is projected to generate annualized after-tax savings of at least $500 million and enhance long-term value.
How is Cigna managing its capital resources and returning value to shareholders?
Cigna prioritizes capital deployment for investing in technology, maintaining financial strength ratings, repaying debt, and funding pension obligations. It also returns capital through dividends, which are paid quarterly, and share repurchases. In 2025, the company repurchased $3.6 billion of its stock, a decrease from $7.0 billion in 2024, while also paying dividends.
06—Continue