Cigna's Evernorth unit said a new coverage deal with Eli Lilly and Novo Nordisk will bring lower copays for insured patients The company hopes the new discount, which caps monthly out-of-pocket costs at $200 for Wegovy and Zepbound, will convince more employers to offer coverage of the drugs.
The market reaction came as Trump signed a wide-ranging executive order aimed at slashing prescription drug prices in the US.
CI increases adjusted earnings guidance for 2025 to $29.60 per share from the previous estimate of $29.50.
While the top- and bottom-line numbers for Cigna (CI) give a sense of how the business performed in the quarter ended March 2025, it could be worth looking at how some of its key metrics compare to Wall Street estimates and year-ago values.
Cigna (CI) came out with quarterly earnings of $6.74 per share, beating the Zacks Consensus Estimate of $6.39 per share. This compares to earnings of $6.47 per share a year ago.
Cigna on Friday raised its full-year earnings forecast and beat estimates for quarterly profit, helped by strong performance in its pharmacy benefit management business and lower-than-expected medical costs in its insurance arm.
CI's first-quarter results are likely to have benefited from growing pharmacy revenues and fees.
Besides Wall Street's top -and-bottom-line estimates for Cigna (CI), review projections for some of its key metrics to gain a deeper understanding of how the company might have fared during the quarter ended March 2025.
Cigna (CI) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
Cigna's strong growth, favorable valuation, and shareholder policies justify a "buy" rating, outperforming the S&P500 with a 37% return since May 2023. The integration of insurance with pharmacy benefit management, particularly through Evernorth, enhances cost control and customer retention, driving significant revenue growth. Despite rising medical costs and public dissatisfaction with insurers, Cigna's strategic focus on commercial health plans and PBMs mitigates risks and supports future growth.
Cigna is positioned to benefit from utilization normalization and aims for 10%-14% annual EPS growth by reducing Medicare exposure and improving Commercial business. Despite industry challenges, Cigna achieved 8%-9% YoY EPS growth in 2023-2024, demonstrating strong cost discipline and effective management. The sale of Cigna's Medicare unit and focus on lower-cost biosimilars and streamlined care accessibility are key strategic moves for future growth.
Cigna has made a series of upper management changes, which include making CFO Brian Evanko as the healthcare conglomerate's chief operating officer, and promoting his deputy Ann Dennison to the top finance role.