The Cigna Group reported fourth-quarter 2024 adjusted income from operations of $1.8 billion, or $6.64 per share, falling short of analyst estimates of $7.83 per share. Total revenues for the quarter reached $65.65 billion, surpassing Street forecasts of $63.25 billion, driven by strong contributions from Evernorth Health Services.
The profit miss was primarily attributed to higher-than-expected medical costs in the stop-loss product within Cigna Healthcare, stemming from a greater frequency of high-dollar claimants related to specialty medications and high-acuity surgical activity. For the full year 2024, adjusted income from operations was $7.7 billion, or $27.33 per share.
Despite the Q4 profit miss, Cigna's board raised the quarterly dividend by 7.9% to $1.51 per share and authorized an additional $6 billion for its share-repurchase plan, bringing the total buyback authority to $10.3 billion. The company also established its full-year 2025 adjusted EPS outlook at at least $29.50 and adjusted revenues at at least $252 billion, reflecting confidence in future performance and a plan to recapture margins in the stop-loss business over the next two years.
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