Cigna Group: Q3 FY2025 earnings call

What management said about Q3 FY2025, from the documents filed with the SEC on 30 October 2025: press release. Guidance figures: 4 kept. The quarter’s numbers.

Read the filing

Key takeaways

• Revenue rose 10% to $69.7 billion: Total revenues rose 10% to $69.7 billion, primarily driven by Evernorth Health Services, including growth of existing client relationships and specialty pharmacy growth. Source
• Adjusted per-share income rose to $7.83: Adjusted income from operations was $2.1 billion, or $7.83 per share, against $7.51 a year earlier. Dollar income declined 1%, mainly on lower Cigna Healthcare contributions, partly offset by Specialty and Care Services and Corporate. Source
• Evernorth adjusted revenue rose 15%: Evernorth Health Services adjusted revenues rose 15% and adjusted pre-tax income rose 1%, compared with the third quarter of 2024. The pre-tax margin was 3.2%, against 3.6% a year earlier. Source
• Cigna Healthcare pre-tax income fell 12%: Cigna Healthcare adjusted revenues fell 18%, mainly from the HCSC transaction; excluding it, revenues rose 6% on premium rate increases. Adjusted pre-tax income fell 12%, primarily from a higher medical care ratio. Source
• Medical care ratio rose to 84.8%: The Cigna Healthcare MCR was 84.8% for the quarter, against 82.8% a year earlier, due to the Individual and Family Plans business and higher stop loss medical costs. Source
• New rebate-free pharmacy benefit model: The company announced a new rebate-free pharmacy benefit model designed to lower costs, improve transparency and support local pharmacies. Source

“Our strong quarterly results reflect the breadth of our businesses and focused execution on our growth strategy, even in a dynamic environment,”

David M. Cordani, chairman and CEO of The Cigna Group

Guidance

What changed from last quarter

• New: The company announced a new rebate-free pharmacy benefit model designed to lower costs, improve transparency and support local pharmacies. Source
• Guidance kept: Full-year 2025 adjusted income from operations per share estimate of at least $29.60 reaffirmed, unchanged from the second quarter release. Source

Results and growth drivers

• Revenue rose 10% to $69.7 billion: Total revenues rose 10% to $69.7 billion, primarily driven by Evernorth Health Services, including growth of existing client relationships and specialty pharmacy growth. Source
• Adjusted per-share income rose to $7.83: Adjusted income from operations was $2.1 billion, or $7.83 per share, against $7.51 a year earlier. Dollar income declined 1%, mainly on lower Cigna Healthcare contributions, partly offset by Specialty and Care Services and Corporate. Source
• Shareholders' net income rose to $6.98 per share: Shareholders' net income was $1.9 billion, or $6.98 per share, against $0.7 billion, or $2.63 per share, a year earlier, which included a one-time non-cash after-tax investment loss of $1.0 billion. Source

Segments and regions

• Evernorth adjusted revenue rose 15%: Evernorth Health Services adjusted revenues rose 15% and adjusted pre-tax income rose 1%, compared with the third quarter of 2024. The pre-tax margin was 3.2%, against 3.6% a year earlier. Source
• Pharmacy Benefit Services income fell 6%: Pharmacy Benefit Services adjusted revenues rose 18% on organic growth and new business. Adjusted pre-tax income fell 6%, which the company tied to strategic investments and initiatives supporting business growth. Source
• Specialty and Care income rose 11%: Specialty and Care Services adjusted revenues rose 10% on specialty volume growth. Adjusted pre-tax income rose 11%, reflecting organic growth in specialty businesses and increased adoption of biosimilars. Source
• Cigna Healthcare pre-tax income fell 12%: Cigna Healthcare adjusted revenues fell 18%, mainly from the HCSC transaction; excluding it, revenues rose 6% on premium rate increases. Adjusted pre-tax income fell 12%, primarily from a higher medical care ratio. Source
• Corporate loss narrowed to $363 million: Corporate and Other Operations recorded an adjusted pre-tax loss of $363 million, against $431 million a year earlier, with higher contributions in Corporate. Source

“Our new market-defining rebate-free pharmacy benefit model will further lower costs and enhance transparency for the benefit of those we serve.”

David M. Cordani, chairman and CEO of The Cigna Group

Products and customers

• Pharmacy customers rose to 122.5 million: Total pharmacy customers reached 122.5 million, up 4% from December 31, 2024, reflecting new sales and continued expansion of relationships. Source
• Medical customers fell 6% on HCSC sale: Total medical customers fell 6% to 18.1 million, primarily reflecting the HCSC transaction. Excluding it, medical customers were consistent with December 31, 2024. Source
• Customer relationships total 182.5 million: Total customer relationships were 182.5 million at September 30, 2025; excluding the HCSC transaction, they rose 2% from December 31, 2024. Source

Costs, medical care and margins

• Medical care ratio rose to 84.8%: The Cigna Healthcare MCR was 84.8% for the quarter, against 82.8% a year earlier, due to the Individual and Family Plans business and higher stop loss medical costs. Source
• Stop loss costs in line with expectations: Management said the higher stop loss medical costs relative to the prior year were consistent with its expectations and with prior commentary. Source
• SG&A expense ratio fell to 4.8%: The SG&A expense ratio was 4.8% and the adjusted ratio 4.6%, against 5.6% and 5.5% a year earlier, which the company attributed to business mix shift. Source
• Medical costs payable declined year over year: Net medical costs payable were $4.53 billion at September 30, 2025, against $4.93 billion a year earlier. The decrease was primarily driven by the HCSC transaction, which included $932 million at September 30, 2024. Source
• Favorable prior-year reserve development of $319 million: Favorable prior year reserve development on a gross pre-tax basis was $319 million for the nine months ended September 30, 2025, against $422 million a year earlier. Source

Capital, cash and shareholder returns

• Book value per share rose to $156.53: Shareholders' equity was $41.8 billion at September 30, 2025, against $42.1 billion a year earlier. Equity per share was $156.53, against $150.43. Source
• Weighted average shares fell to 267.5 million: Weighted average shares were 267.5 million for the quarter, against 281.4 million a year earlier. Guidance includes expected future share repurchases and anticipated 2025 dividends. Source
• Net investment income rose to $233 million: Net investment income was $233 million for the quarter, against $85 million a year earlier. Source

Strategy and investment

• New rebate-free pharmacy benefit model: The company announced a new rebate-free pharmacy benefit model designed to lower costs, improve transparency and support local pharmacies. Source
• Strategic optimization program charge: Special items included a strategic optimization program charge of $222 million pre-tax, or $168 million after-tax, in the third quarter. Source
• HCSC divestiture affects revenue comparison: The company compares Cigna Healthcare revenue excluding Medicare businesses sold to HCSC on March 19, 2025, to show the go-forward business across periods. Source

Figures management reported

Risks management discussed

• Operational: Higher medical costs in the Individual and Family Plans business and higher stop loss costs raised the Cigna Healthcare medical care ratio above the prior year. Source

Earlier plans management reported on

• Met: Management said the higher stop loss medical costs were consistent with its expectations and with prior commentary. Source

Other quarters

• Q2 FY2026 earnings call
• Q1 FY2026 earnings call
• Q4 FY2025 earnings call
• Q2 FY2025 results

Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.