Cigna Group (NYSE:CI) on Friday reported first-quarter 2025 revenue of $65.45 billion, beating analyst estimates of $60.39 billion.

Sales increased 14% year over year, reflecting the growth of existing client relationships and strong specialty pharmacy growth in Evernorth Health Services.

The company reported adjusted earnings of $6.74 per share, beating analysts’ estimates of $6.35.

Evernorth Health Services, including Pharmacy Benefit and Specialty and Care Services, reported first-quarter sales of $53.68 billion, up 16%.

• Pharmacy Benefit Services sales reached $29.74 billion, 14% reflecting existing client relationships and new business growth.
•  Specialty and Care Services sales reached $23.94 billion, up 19%, reflecting strong specialty volume growth.

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Cigna Healthcare segment sales increased 9% to $14.48 billion, primarily reflecting premium rate increases to cover expected increases in underlying medical costs.

• The Cigna Healthcare medical cost ratio (MCR) was 82.2% for the first quarter of 2025, compared to 79.9% a year ago, primarily due to expected higher stop loss medical costs.
• The Health Care Services Corporation (HCSC) transaction closed later than the company’s financial planning assumptions, increasing the first quarter Cigna Healthcare MCR as the Medicare businesses operate at a higher MCR than the rest of the portfolio.

Cigna ended the March quarter with total medical customers decreasing 6% from Dec. 31, 2024, to 18.04 million, primarily reflecting the impact of the HCSC transaction.

• Excluding the impact of the HCSC transaction, total medical customers as of March 31, 2025, were consistent with December 31, 2024.

Total customer relationships stood at 182.2 million at March 31, 2025.

• Excluding the impact of the HCSC transaction, total customer relationships increased 1% from Dec. 31, 2024.

Total pharmacy customers as of March 31, 2025, increased 3% from Dec. 31, 2024, to 122.3 million due to new sales and the continued expansion of relationships.

“Our strong first quarter results and increase in outlook for full-year earnings reflects the strength of our Evernorth Health Services and Cigna Healthcare growth platforms in a dynamic environment,” said David Cordani, chairman and CEO of the Cigna Group. 

Outlook: Cigna expects fiscal 2025 adjusted income per share of $29.60, up from $29.50 versus the consensus of $29.60

The company expects Evernorth’s adjusted income from operations (pre-tax of at least $7.2 billion, with at least $4.125 billion for Cigna Healthcare.

Cigna Healthcare Medical Care Ratio is expected to be between 83.2% to 84.2%.

CI Price Action: Cigna stock is up 2.93% at $344.99 during the premarket session at publication on Friday.

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