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The Cigna Group recorded $1.87 billion in profit in the third quarter of 2025, beating analysts’ expectations as shares ticked up prior to the company’s earnings call Thursday morning.
Touting the performance of Evernorth Health services in particular, Cigna Group President and CEO David Cordani on Thursday said the company has been “navigating through dynamic and challenging environments.”
“We've partnered with HHS and CMS on initiatives that will create a more seamless access to care environment,” said Cordani. “We've made fertility treatments more affordable for families, and our durable business model is designed to flex and evolve.”
WHAT'S THE IMPACT
Revenue hit $69.7 billion in the quarter, a 10% year-over-year (YOY) increase, while adjusted earnings hit $7.83 per share.
Shares of the company increased 0.3% upon release of Cigna's financials, according to Yahoo Finance.
Evernorth saw adjusted revenues increase 15% compared to the same period in 2024. Revenue from Pharmacy Benefit Services and from care services rose 18% and 10%, respectively, which officials attributed to strong specialty volume growth and higher biosimilar adoption.
Total pharmacy customers have increased to 122.5 million in 2025, a 4% jump since the start of the year. Total medical customers decreased to 18.1 million, a 6% dip, largely due to the roughly $3.7 billion Health Care Service Corporation transaction that occurred in March.
In that transaction, HCSC acquired Cigna's Medicare Advantage, Medicare Supplemental Benefits, Medicare Part D and CareAllies businesses, which were rebranded as HealthSpring.
Cigna had been exploring the sale of its Medicare Advantage business at least since 2023, when its merger with Humana fell through.
Cordani said Thursday that the company was basing its growth strategy around Cigna Healthcare and Evernorth, which make up a significant portion of the Cigna Group's business.
He also said the company will be “future-proofing” itself through various actions, such as securing contract renewals with the Departments of Energy and Defense, as well as pursuing a more transparent model for pharmacy benefit services.
“Our results underscore the strengths of our diverse portfolio of businesses,” said Cordani.
THE LARGER TREND
Just this week, Evernorth said it will be ending drug rebates for all of its fully insured plan customers beginning in 2027.
Instead, the discounted price negotiated between Evernorth's pharmacy benefit manager Express Scripts and drug manufacturers will go directly to consumers.
Evernorth said it is ensuring the lowest-available cost for both brand-name and generic medicines. Out-of-pocket costs will count toward the annual deductible. Medicare and Medicaid drug plans are exempted.
For those who pay the full cost of medications, the new model will reduce the monthly cost for brand-name prescriptions by an average of 30%, Cigna said.