01—Abstract
Summary
Summary of the 8-K filed February 5, 2026. Cited figures are marked; the original filing is the authoritative source.
The Cigna Group (CI) reported fourth quarter and full year 2025 results on February 5, 2026, showing continued growth in its Evernorth Health Services segment, which drove total revenues up 11% for the year to $274.9 billiona.
Shareholders' net income for 2025 was $6.0 billionb, or $22.18 per share, versus $3.4 billion ($12.12 per share) in 2024, which had been depressed by a one-time $2.7 billion after-tax investment loss. Adjusted income from operations, the company's primary profitability measure, rose 4% to $8.0 billion, or $29.84 per share, and fourth quarter adjusted income grew 16% year over year to $2.1 billion ($8.08 per share). Segment results were mixed beneath the headline numbers.
Evernorth's adjusted pre-tax income grew 3%c for the year, with Pharmacy Benefit Services profit declining 2% due to strategic investments despite 18% revenue growth, while Specialty and Care Services grew profit 8%. Cigna Healthcare's full-year pre-tax income fell 2%, and its medical care ratio deteriorated to 84.4% from 83.2%, largely due to the Individual and Family Plans business; revenue declines reflected the March 2025 divestiture of the Medicare businesses to HCSC. Fourth quarter Cigna Healthcare profit rose 44%, helped by stop-loss results.
For 2026, management guided to adjusted revenues of approximately $280.0 billiond, adjusted income from operations of at least $7.95 billion ($30.25 per share), and Evernorth pre-tax income of at least $6.9 billion, while Cigna Healthcare pre-tax income is guided to at least $4.5 billion with an MCR of 83.7% to 84.7%. The board also raised the quarterly dividend to $1.56 per share from $1.51, and the company repurchased 11.9 million shares for about $3.6 billion in 2025, lowering the debt-to-capitalization ratio to 43.0%.
02—Key points
Key Highlights
- Full-year 2025 total revenues rose 11% to $274.9 billion, driven primarily by Evernorth Health Services and strong specialty pharmacy growth.
- Adjusted income from operations was $8.0 billion ($29.84 per share) for 2025, up 4%; GAAP shareholders' net income was $6.0 billion ($22.18 per share) versus $3.4 billion in 2024.
- Fourth quarter 2025 adjusted income from operations rose 16% to $2.1 billion ($8.08 per share), led by Cigna Healthcare and Evernorth.
- Cigna Healthcare full-year MCR worsened to 84.4% from 83.2%, mainly due to higher medical costs in the Individual and Family Plans business.
- 2026 guidance calls for at least $7.95 billion adjusted income from operations ($30.25 per share) on approximately $280.0 billion of adjusted revenues.
- Quarterly dividend increased to $1.56 per share from $1.51; 2025 share repurchases totaled 11.9 million shares for approximately $3.6 billion.
- Debt-to-capitalization ratio improved to 43.0% at December 31, 2025, from 44.9% at September 30, 2025.
03—Questions
Frequently Asked Questions
Why did GAAP net income increase so sharply in 2025 compared with 2024?
2024 GAAP net income of $3.4 billion included a one-time non-cash after-tax investment loss of $2.7 billion ($9.53 per share). Excluding that loss and other adjustments, the underlying profitability picture was steadier, with adjusted income from operations rising 4% to $8.0 billion.
Why did Cigna Healthcare revenue decline, and is the underlying business growing?
The decline mainly reflects the March 19, 2025 sale of the Medicare Advantage and related businesses to HCSC, which removed $12.3 billion of 2024 revenue on a comparable basis for the period. Excluding divested businesses, Cigna Healthcare adjusted revenues rose 7% for 2025, driven by premium rate increases.
What are the main risks to the 2026 outlook?
Key risks include rising medical costs that could compress margins, pressure in the Individual and Family Plans business that already weighed on 2025 MCR, pharmacy pricing and rebate model changes, and the company's ability to execute its strategic initiatives and transition to a rebate-free pricing model. Adjusted income guidance excludes future net investment results and special items, which could materially change GAAP earnings.
Is the dividend increase sustainable given the company's debt and capital allocation?
The $1.56 quarterly dividend represents a roughly 3% increase, and management projects about $1.6 billion in 2026 shareholder dividends. Debt-to-capitalization fell to 43.0% and 2025 buybacks totaled about $3.6 billion, with 2026 cash flow from operations projected at roughly $9.0 billion against $1.3 billion of capital expenditures, which suggests reasonable coverage, though the company still carries significant indebtedness.
04—Continue