Cigna Reports Strong Q3 Results, Reaffirms 2025 Outlook Amid PBM Changes
The Cigna Group has posted impressive third-quarter results for 2025, with a significant increase in profit and revenue compared to the previous year. The company's performance, which surpassed Wall Street expectations, comes amid ongoing changes in its pharmacy benefit management (PBM) business and broader industry trends.
Financial Performance and Outlook
Cigna reported a profit of $1.9 billion for the third quarter, a substantial increase from the $739 million reported in the same period last year. This figure exceeded analysts' predictions, as per Zacks Investment Research. Revenue also saw a notable rise, reaching $69.7 billion, up from $63.7 billion in Q3 2024.
For the first nine months of 2025, Cigna's cumulative revenue stands at $202.4 billion, with a profit of $4.7 billion. These figures represent a significant improvement over the same period in 2024, which saw revenue of $181.5 billion and profit of $2 billion.
In light of these strong results, Cigna has reaffirmed its outlook for 2025, projecting earnings of at least $29.60 per share.
Segment Performance and Strategic Shifts
Cigna Healthcare
The insurance arm of the company, Cigna Healthcare, reported revenues of $10.8 billion. While this represents an 18% decline year-over-year, the company attributes this primarily to the sale of its Medicare Advantage plans to Health Care Service Corporation. Excluding this divestment, the segment actually saw a 6% increase in revenue.
Cigna's medical loss ratio for the quarter was 84.8%, a slight increase from the previous year. The company cited higher costs in its individual and family segment and medical costs in stop-loss as factors contributing to this rise. As of Q3, Cigna reported a total of 18.1 million members.
Evernorth and PBM Business
Evernorth, Cigna's health services division, saw a 15% year-over-year increase in revenue, reaching $60.4 billion. This growth was largely driven by its PBM unit, which experienced an 18% rise in revenues. The pharmacy benefit management business reported 122.5 million members in the third quarter, marking an increase both year-over-year and from Q2 2025.
Industry Context and Future Directions
David Cordani, CEO of The Cigna Group, emphasized the company's strategic focus, stating, "Our strong quarterly results reflect the breadth of our businesses and focused execution on our growth strategy, even in a dynamic environment. We continue to lead positive change and are addressing some of healthcare's biggest challenges."
The robust performance comes at a time when Cigna's Express Scripts is reportedly planning to shift away from traditional PBM rebates, signaling potential changes in the industry's approach to drug pricing and reimbursement models.
As Cigna navigates these industry shifts, its diverse business portfolio and strong financial performance position it well to adapt to evolving healthcare landscapes and continue its growth trajectory into the remainder of 2025 and beyond.
References
- Cigna forecasts margin pressures on PBM business
The Cigna Group is reaffirming its outlook for the year after posting $1.9 billion in profit for the third quarter.
Explore Further
What strategic initiatives is Cigna undertaking to address the ongoing changes in its pharmacy benefit management business?
How does Cigna’s decision to shift away from traditional PBM rebates impact the broader healthcare industry?
What strategies is Cigna employing to offset the revenue decline in its Medicare Advantage segment?
How does Cigna's PBM business compare to competitors in terms of member growth and revenue performance?
What role does Evernorth play in driving Cigna's revenue growth, and how is it positioned within the current healthcare market?