Overview
- Cigna reported third-quarter revenue of $69.7 billion and net income of $1.9 billion, with Evernorth revenue up about 15% to roughly $60.4 billion, and reaffirmed 2025 adjusted EPS of at least $29.60.
- Shares fell more than 17% in morning trading after the outlook highlighted near-term pharmacy margin pressure, even as management projected EPS growth in 2026.
- Executives said Express Scripts’ profits could be lower in 2026 due to the rebate-free transition and renewed contracts with Centene, Prime Therapeutics and the Department of Defense that together represent about $90 billion in annual revenue.
- Cigna plans to eliminate prescription drug rebates in its commercial plans in 2027 in favor of point-of-sale discounts, with Express Scripts clients able to elect the model beginning in 2028.
- The medical loss ratio rose to 84.8% from 82.8% a year earlier, driven by ACA exchange business and elevated stop-loss costs that the company repriced earlier this year.