Summary
Cigna Group (CI) reported a significant turnaround in its financial performance for the first quarter of 2025, moving from a net loss of $277 million in Q1 2024 to a net income of $1.323 billion, resulting in a diluted EPS of $4.85 compared to ($0.97) in the prior year. This improvement was largely driven by the absence of substantial net investment losses experienced in Q1 2024, which were primarily related to equity security impairments. Total revenues saw a robust 14% increase year-over-year, reaching $65.5 billion, fueled by growth across all segments, particularly a 16% rise in Pharmacy revenues. The company also successfully completed the divestiture of its Medicare Advantage and related businesses to HCSC for an increased purchase price, which is expected to provide additional proceeds in Q4 2025. While operating expenses rose 16%, the strong revenue growth and the elimination of prior-year investment losses contributed to the substantial net income improvement. Cigna also announced a new $6.5 billion credit facility in April 2025, underscoring its strong liquidity position.
Financial Highlights
47 data points| Revenue | $65.50B |
| Cost of Revenue | $48.40B |
| Gross Profit | $17.10B |
| SG&A Expenses | $4.21B |
| Operating Income | $1.97B |
| Interest Expense | $362.00M |
| Net Income | $1.32B |
| EPS (Basic) | $4.88 |
| EPS (Diluted) | $4.85 |
| Shares Outstanding (Diluted) | 272.95M |
Key Highlights
- 1Reported a substantial swing from a net loss of $277 million in Q1 2024 to a net income of $1.323 billion in Q1 2025, with diluted EPS at $4.85 compared to ($0.97).
- 2Total revenues increased by 14% to $65.5 billion, driven by strong performance in Pharmacy revenues (up 16%) and Premiums (up 10%).
- 3Completed the divestiture of its Medicare Advantage and related businesses to HCSC on March 19, 2025, receiving $4.2 billion in cash proceeds at closing and expecting an additional $0.6 billion later in the year.
- 4Adjusted income from operations slightly decreased by 2% to $1.84 billion, primarily due to the absence of state tax benefits from the prior year and lower earnings in the Cigna Healthcare segment, partially offset by growth in Evernorth Health Services.
- 5Pharmacy and other service costs increased by 17%, and medical costs increased by 11%, reflecting higher utilization and costs, but were managed effectively against revenue growth.
- 6Selling, general, and administrative (SG&A) expenses increased by 14%, largely due to costs associated with the Strategic Optimization Program and the HCSC transaction.
- 7The company announced a new $6.5 billion, five-year revolving credit facility in April 2025, enhancing its liquidity and financial flexibility.