The Cigna Group (CI), headquartered in Bloomfield, Connecticut, provides insurance and related products and services. Valued at $74.6 billion by market cap, the company offers life, accident, disability, supplemental, Medicare, and dental insurance products and services. The healthcare insurance giant is expected to announce its fiscal fourth-quarter earnings for 2025 in the near term.
Ahead of the event, analysts expect CI to report a profit of $7.90 per share on a diluted basis, up 19% from $6.64 per share in the year-ago quarter. The company surpassed the consensus estimates in three of the last four quarters while missing the forecast on another occasion.
For the full year, analysts expect CI to report EPS of $29.63, up 8.4% from $27.33 in fiscal 2024. Its EPS is expected to rise 3.1% year over year to $30.56 in fiscal 2026.
CI stock has underperformed the S&P 500 Index’s ($SPX) 16.9% gains over the past 52 weeks, with shares up 1.7% during this period. Similarly, it underperformed the Health Care Select Sector SPDR Fund’s (XLV) 13% returns over the same time frame.
Cigna's underperformance stems from investor concerns about changes to its pharmacy-benefit management (PBM) business model, including a shift to a no-rebate pricing model by 2027 and repricing of major contracts worth $90 billion in annual revenue, raising concerns about transition risk and margin compression.
On Oct. 30, CI shares closed down more than 17% after reporting its Q3 results. Its adjusted EPS of $7.83 exceeded Wall Street expectations of $7.70. The company’s adjusted revenue was $69.6 billion, beating Wall Street's $67.2 billion forecast. CI expects full-year adjusted EPS to be $29.60.
Analysts’ consensus opinion on CI stock is bullish, with a “Strong Buy” rating overall. Out of 23 analysts covering the stock, 17 advise a “Strong Buy” rating, two suggest a “Moderate Buy,” three give a “Hold,” and one recommends a “Strong Sell.” CI’s average analyst price target is $326.05, indicating a potential upside of 16.8% from the current levels.
On the date of publication, Neha Panjwani did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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