Cigna Group Reports Q4 2024 Earnings and 2025 Outlook

Cigna Group's Q4 2024 results reveal a 27% revenue growth but fall short on EPS expectations. Looking ahead, the company projects adjusted EPS of at least $29.50 for 2025, focusing on corrective actions to improve margins amidst rising healthcare costs.

Date: 30-01-2025

AI Rating: 6

Earnings Per Share (EPS)
For full year 2024, Cigna reported adjusted earnings per share of $27.33, a 9% increase year-over-year but below expectations. The 2025 EPS outlook is set at least $29.50, indicating an anticipated growth.
Revenue Growth
Cigna experienced a significant revenue growth of 27% in 2024, totaling approximately $247 billion. The company expects this momentum to continue with projected revenues of at least $252 billion in 2025.
Net Income
The adjusted after-tax earnings for 2024 were reported at $7.7 billion, providing a strong net income figure to support future investments and shareholder returns.
Profit Margins
The full year medical care ratio for 2024 stood at 83.2%, above guidance expectations. The fourth-quarter results reflected elevated medical costs impacting margins that the company is addressing. Cigna anticipates margin recovery focusing on pricing actions and operational efficiency.
Free Cash Flow (FCF)
The report highlighted robust cash flow from operations, totaling $10.4 billion for 2024, providing a solid foundation for capital deployment.
Return on Equity (ROE)
Cigna maintains a strong capital position and continues to return value to shareholders through significant share repurchases and a dividend increase. The positive cash flow supports its long-term growth strategy.

Stocks: CI