Cigna shares tumble as Q4 earnings miss, 2025 outlook disappoints

Investing.com -- Shares of The Cigna (NYSE:CI) Group plunged 10.6% in premarket trading on Thursday after the health insurer reported fourth-quarter earnings that fell short of analyst expectations and provided a weaker-than-anticipated outlook for 2025.

The company reported adjusted earnings per share of $6.64 for Q4, missing the analyst consensus of $7.79. Revenue for the quarter came in at $65.65 billion, surpassing estimates of $63.16 billion and representing a 28% increase YoY.

Cigna's fourth-quarter results were impacted by higher-than-expected medical costs in its stop loss insurance business. The company's medical care ratio, which measures medical costs as a percentage of premiums, rose to 87.9% in Q4 from 82.2% a year earlier.

"While higher medical costs in our stop loss product impacted fourth quarter earnings, we are taking corrective actions to address these near-term pressures," said David M. Cordani, chairman and CEO of The Cigna Group.

For the full year 2024, Cigna reported adjusted earnings of $27.33 per share on revenue of $247.1 billion, up 27% from 2023.

Looking ahead, Cigna provided a disappointing outlook for 2025. The company expects adjusted earnings of at least $29.50 per share, below the analyst consensus of $31.49. Revenue is projected to be at least $252 billion, roughly in line with estimates of $252.4 billion.

The company also announced an 8% increase in its quarterly dividend to $1.51 per share and approved an additional $6 billion share repurchase authorization.