Cigna shares down 4.5% after Q2 results

Cigna Group (NYSE: CI) reported second-quarter 2025 results on July 31, 2025, showing strong financial performance across its operations. Total revenues for the quarter increased 11% year over year to $67.2 billion, driven by Evernorth Health Services segment growth and strong specialty pharmacy performance. Shareholders' net income for the quarter was $1.5 billion, or $5.71 per share, compared to $5.45 per share in 2024. Adjusted income from operations was $1.9 billion, or $7.20 per share, reflecting a 1% increase compared to the prior year.

The Evernorth Health Services segment, which includes Pharmacy Benefit Services and Specialty and Care Services, contributed significantly to the company's growth. Segment revenues increased 17% year over year to $57.8 billion, with both Pharmacy Benefit Services and Specialty and Care Services showing strong performance. The Cigna Healthcare segment, however, experienced a 18% decline in adjusted revenues year over year to $10.8 billion, primarily due to the divestiture of its Medicare Advantage and related businesses to Health Care Services Corporation (HCSC).

Despite the strong earnings results, Cigna shares fell 4.5% in the days following the earnings release. The decline came despite the company reaffirming its 2025 outlook for adjusted earnings per share of at least $29.60. The drop in share price may reflect investor concerns over the impact of the HCSC transaction and broader market conditions.

Cigna's adjusted SG&A expense ratio improved to 4.9% for the quarter, down from 6.0% in the prior year, reflecting a shift in business mix and higher revenues. The company also reported a total customer base of 182.2 million as of June 30, 2025, with pharmacy customers increasing 3% year over year to 121.9 million.

The company's outlook for the remainder of 2025 remains unchanged, with expectations for continued growth in the Evernorth Health Services segment and improved performance in the Cigna Healthcare segment. Investors will be watching closely for signs of sustained momentum and the long-term impact of the HCSC transaction on Cigna's financial performance.