Cigna Reports Strong Q3 Results, Reaffirms 2025 Outlook Amid PBM Business Shifts

The Cigna Group has announced robust financial results for the third quarter of 2025, posting a significant increase in profit and revenue while reaffirming its outlook for the year. The healthcare giant's performance reflects the strength of its diversified business model and strategic focus, even as it navigates challenges in its pharmacy benefit management (PBM) segment.

Q3 Financial Highlights and Performance

Cigna reported a substantial surge in profit for the third quarter, reaching $1.9 billion, a marked increase from the $739 million recorded in the same period last year. This figure exceeded Wall Street analysts' expectations, as per Zacks Investment Research. Revenue also saw impressive growth, totaling $69.7 billion for the quarter, up from $63.7 billion in Q3 2024.

The company's year-to-date performance remains strong, with revenues of $202.4 billion and profits of $4.7 billion through the first nine months of 2025. These figures represent significant improvements over the same period in 2024, when Cigna reported $181.5 billion in revenue and $2 billion in profit.

David Cordani, CEO of The Cigna Group, attributed the strong results to the company's strategic execution and diverse business portfolio. "Our strong quarterly results reflect the breadth of our businesses and focused execution on our growth strategy, even in a dynamic environment," Cordani stated in the earnings release.

Segment Performance and Strategic Shifts

Cigna Healthcare

The insurance arm of the company, Cigna Healthcare, reported revenues of $10.8 billion, marking an 18% decline year-over-year. This decrease was largely attributed to the sale of Cigna's Medicare Advantage plans to Health Care Service Corporation. Excluding this divestment, the segment's revenues grew by 6% compared to the previous year.

Cigna's medical loss ratio for the quarter stood at 84.8%, a slight increase from the previous year, partly due to rising costs in its individual and family segment and medical costs in stop-loss coverage. The company reported a total membership of 18.1 million as of the third quarter.

Evernorth and PBM Business

Evernorth, which includes Cigna's PBM operations, saw a 15% year-over-year increase in revenue, reaching $60.4 billion. The PBM unit specifically experienced an 18% revenue growth. Pharmacy membership grew to 122.5 million in the third quarter, showing increases both year-over-year and sequentially from Q2 2025.

Despite the strong performance, Cigna faces potential margin pressures in its PBM business. The company's Express Scripts unit is set to shift away from the traditional rebate model, signaling a strategic realignment in response to industry trends and regulatory scrutiny of PBM practices.

Outlook and Future Positioning

Based on its strong quarterly performance, Cigna has reaffirmed its earnings outlook for 2025, projecting at least $29.60 in earnings per share for the full year. This guidance demonstrates the company's confidence in its ability to navigate the evolving healthcare landscape and maintain growth across its diverse business segments.

As Cigna continues to adapt to market dynamics, particularly in its PBM operations, the company remains focused on addressing healthcare challenges and driving positive change in the industry. The strategic shifts in its PBM model and the strong performance across other segments position Cigna to capitalize on emerging opportunities while managing potential headwinds in the coming quarters.