Cigna Q4 Earnings Exceed Expectations
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Should l Buy CI?
Source: seekingalpha
- Earnings Beat: Cigna reported a Q4 Non-GAAP EPS of $8.08, surpassing expectations by $0.20, indicating sustained profitability that is likely to positively influence stock performance.
- Significant Revenue Growth: Adjusted revenue reached $72.49 billion, a 10.4% year-over-year increase, exceeding forecasts by $3.41 billion, reflecting strong performance in healthcare and pharmacy benefit services, which boosts market confidence.
- Customer Relationship Expansion: As of December 31, 2025, total customer relationships increased by 3% to 188.4 million, driven by new sales and ongoing expansion in Pharmacy Benefit Services, showcasing the company's competitive edge in the market.
- Optimistic Outlook: Cigna projects 2026 adjusted revenues of approximately $280 billion and adjusted income from operations of at least $7.95 billion, demonstrating confidence in future growth while planning to increase shareholder dividends to $1.56 per share, enhancing investor appeal.
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Analyst Views on CI
Wall Street analysts forecast CI stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for CI is 335.63 USD with a low forecast of 300.00 USD and a high forecast of 378.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
16 Analyst Rating
14 Buy
2 Hold
0 Sell
Strong Buy
Current: 275.390
Low
300.00
Averages
335.63
High
378.00
Current: 275.390
Low
300.00
Averages
335.63
High
378.00
About CI
The Cigna Group is a global health company. The Company has two growth platforms: Evernorth Health Services and Cigna Healthcare. Evernorth Health Services includes its Pharmacy Benefit Services and Specialty and Care Services operating segments, which provide independent and coordinated health solutions and capabilities to enable the healthcare system to work better and help people live richer, healthier lives. Cigna Healthcare includes the U.S. Healthcare and International Health operating segments, which provide comprehensive medical plan services and coordinated solutions to clients and customers. Its Other Operations include corporate-owned life insurance (COLI), the Company's run-off operations and other non-strategic businesses. Specialty and Care Services provides specialty drugs for the treatment of complex and rare diseases, specialty distribution of pharmaceuticals and medical supplies, and clinical programs to help its clients.
About the author

Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
- Earnings Announcement: Cigna is set to release its Q4 earnings on February 5th before market open, with consensus EPS estimated at $7.88, reflecting an 18.7% year-over-year increase, indicating sustained profitability that could positively impact stock prices.
- Revenue Expectations: The anticipated revenue for Q4 is $69.08 billion, representing a 5.2% year-over-year growth, which showcases the company's robust performance in the health insurance market and may attract more investor interest in its future growth potential.
- Historical Performance: Over the past two years, Cigna has beaten EPS estimates 88% of the time and revenue estimates 100% of the time, suggesting a strong track record that could bolster market confidence in its upcoming earnings report and drive stock price increases.
- Estimate Revisions: In the last three months, EPS estimates have seen 2 upward revisions and 7 downward revisions, while revenue estimates experienced 4 upward and 2 downward revisions, indicating market volatility and differing investor perspectives on the company's future performance, necessitating cautious evaluation.
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- Strong Financial Performance: Cigna reported adjusted revenue of $72.5 billion for Q4 2025, reflecting a year-over-year increase of approximately 10%, surpassing market expectations by $3.4 billion, indicating robust growth potential amid improving medical costs.
- Pharmacy Benefit Services Growth: The company's Pharmacy Benefit Services segment generated $36.3 billion in revenue for the quarter, achieving around 20% year-over-year growth, highlighting the significant contribution of its Evernorth Health Services unit and enhancing its competitive position in the market.
- Insurance Business Decline: Despite overall strong performance, Cigna's healthcare insurance unit saw adjusted revenues decline by approximately 16% year-over-year to $11.2 billion, primarily due to the divestiture of its Medicare and related businesses in March 2025, impacting the overall revenue structure.
- Cautious Future Outlook: Cigna estimates adjusted revenue of about $280 billion for 2026, slightly below the consensus of $282.4 billion, with projected Medical Care Ratio expected to range between 83.7% and 84.7%, reflecting the company's cautious stance on future medical costs.
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- Net Income Growth: Cigna Group's shareholders' net income for 2025 reached $6 billion, or $22.18 per share, significantly up from $3.4 billion and $12.12 per share in 2024, reflecting the company's strong performance and profitability in the global health market.
- Operational Income Increase: The adjusted income from operations for 2025 was $8 billion, or $29.84 per share, compared to $7.7 billion and $27.33 per share in 2024, demonstrating the company's success in cost control and operational efficiency.
- Customer Relationship Expansion: As of December 31, 2025, Cigna Group's total medical customers reached 18.8428 million, an increase from 18.2212 million in 2024, indicating the company's ongoing efforts in market penetration and customer acquisition.
- Optimistic 2026 Outlook: Cigna Group projects approximately $280 billion in adjusted revenues for 2026, with adjusted income from operations expected to be at least $7.95 billion, showcasing the company's confidence in future growth and the effectiveness of its strategic planning.
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- Earnings Beat: Cigna reported a Q4 Non-GAAP EPS of $8.08, surpassing expectations by $0.20, indicating sustained profitability that is likely to positively influence stock performance.
- Significant Revenue Growth: Adjusted revenue reached $72.49 billion, a 10.4% year-over-year increase, exceeding forecasts by $3.41 billion, reflecting strong performance in healthcare and pharmacy benefit services, which boosts market confidence.
- Customer Relationship Expansion: As of December 31, 2025, total customer relationships increased by 3% to 188.4 million, driven by new sales and ongoing expansion in Pharmacy Benefit Services, showcasing the company's competitive edge in the market.
- Optimistic Outlook: Cigna projects 2026 adjusted revenues of approximately $280 billion and adjusted income from operations of at least $7.95 billion, demonstrating confidence in future growth while planning to increase shareholder dividends to $1.56 per share, enhancing investor appeal.
See More
- Tech Sector Performance: The tech sector continues to experience a downturn, marking the second consecutive day of losses.
- Earnings Reports: Despite the slump, most earnings reports released today were solid, though they were insufficient to reverse the negative trend.
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- Amazon Earnings Focus: Amazon is set to release its Q4 earnings on Thursday, with analysts expecting a reacceleration in cloud growth driven by AI demand and infrastructure investments, which could positively impact revenue and margins.
- Energy Giants Reporting: Energy companies like Shell and ConocoPhillips will also report earnings on the same day, and investors will closely monitor their performance to assess the overall health of the energy market.
- Fed Commentary: Atlanta Fed President Raphael Bostic will provide new commentary, and analysts will pay attention to his views on Trump's Fed chair nominee Kevin Warsh, which could influence market expectations regarding future monetary policy.
- Mortgage Rate Data: Freddie Mac will release the latest mortgage rate data, with the current 30-year fixed rate at 6.1%, a high level that continues to impact affordability for homebuyers and may lead to fluctuations in the housing market.
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