The Cigna Group (NYSE:CI) shares climbed on Thursday after the healthcare giant posted 2025 results that surpassed internal targets, fueled by explosive growth in its Evernorth health services division and a strategic pivot toward high-margin specialty pharmacy.
The Bloomfield, Connecticut-based company reported full-year total revenues of $274.9 billion, an 11% increase over 2024.
Shareholders’ net income for 2025 reached $6 billion, or $22.18 per share.
On an adjusted basis, income from operations rose to $8 billion, or $29.84 per share, significantly exceeding the company's initial guidance of $28.40 provided early last year.
The earnings beat was punctuated by a 14% hike in the quarterly dividend, which now stands at $1.56 per share.
The primary engine behind the 2025 performance was Evernorth, which saw a surge in its specialty pharmacy business and higher adoption of its biosimilar exchange programs.
Despite the successful sale of its Medicare businesses to HCSC in early 2025, the company managed to maintain a robust medical care ratio (MCR) by focusing on its core commercial medical segments.
In the fourth quarter alone, Cigna delivered adjusted operating income of $8.08 per share, beating the $7.88 analyst consensus as the company effectively managed rising utilization trends in outpatient procedures.