Cigna Q4 adjusted revenue up 11%, beats estimates

Overview

• Global health company's Q4 adjusted revenue beat analyst expectations, rising 11% yr/yr

• Adjusted income from operations for Q4 rose 16% yr/yr, driven by Cigna Healthcare

• Company increased quarterly dividend to $1.56 per share

Outlook

• Cigna projects 2026 adjusted income from operations of at least $7.950 bln

• Company expects 2026 adjusted revenues of approximately $280 bln

• Cigna anticipates 2026 dividends totaling ~$1.6 bln

Result Drivers

• SPECIALTY PHARMACY GROWTH - Growth in specialty pharmacy and care services drove revenue increases, particularly in Evernorth Health Services

• STOP LOSS PRODUCTS - Increased contributions from stop loss products boosted Q4 adjusted income from operations in Cigna Healthcare

• CUSTOMER EXPANSION - Behavioral care and pharmacy customer growth offset declines in medical customers due to HCSC transaction

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 20 "strong buy" or "buy", 5 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the managed healthcare peer group is "buy"

• Wall Street's median 12-month price target for Cigna Group is $325.00, about 19.6% above its February 4 closing price of $271.71

• The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 8 three months ago

Press Release: ID:nPn7Mxdrpa

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