Cigna (CI) FY2025 10-K Annual Report
Cigna (CI) 10-K annual report for fiscal year 2025, filed with SEC EDGAR on Feb 26, 2026. This page provides AI-powered analysis including business overview, management discussion & analysis (MD&A), risk factors, and key financial data such as revenue, net income, gross margin, operating margin, and return on equity (ROE) extracted from XBRL.
Cigna FY2025 10-K Analysis
Business Overview
- • Global health company operating two core segments: Evernorth Health Services (PBM/specialty pharmacy) and Cigna Healthcare (medical benefits), serving 185M+ customer relationships across 30+ markets
- • Completed sale of Medicare Advantage, Medicare Part D, and CareAllies businesses to HCSC on March 19, 2025 — major portfolio exit, marking deliberate retreat from government-sponsored individual Medicare market
- • Announced transformative rebate-free pharmacy benefits model: upfront drug discounts passed directly to customers; Cigna Healthcare fully insured adoption in 2027, becoming standard Evernorth client offering in 2028
- • Launched EnGuide Pharmacy in 2025, dedicated GLP-1 medication pharmacy with clinical support, operating two licensed pharmacies including one fulfillment facility in Ohio — direct response to surging demand for GLP-1 drugs
- • Single PBM client (Centene) drove ~19% of total external revenue in 2025, up from 16% in 2024 — significant and growing revenue concentration risk
Management Discussion & Analysis
- • Revenue $274.9B, up $27.8B (+11%) YoY; pharmacy revenues dominant driver, up $31.3B (+17%) from Evernorth customer growth
- • Evernorth (best segment): adjusted revenues $235B, pre-tax margin 3.1% vs 3.5%; Cigna Healthcare (worst): revenues down 11% to $47.2B, MCR 84.4% vs 83.2%
- • Consolidated adjusted income from operations $8.0B vs $7.7B; Cigna Healthcare pre-tax margin 8.8% vs 8.0%; shareholders' net income $6.0B vs $3.4B (+73%)
- • Operating cash flow $9.6B vs $10.4B; capex $1.2B vs $1.4B; buybacks $3.6B (11.9M shares) vs $7.0B (20.9M shares); HCSC divestiture generated $4.9B proceeds
- • Key risks: rebate-free pharmacy model transition costs to pressure Evernorth near-term; strategic optimization program costs $749M pre-tax in 2025 with further charges anticipated; $1.3B capex guided for 2026
Risk Factors
- • FTC administrative complaint against Express Scripts (Sept 2024) for anticompetitive insulin rebate practices; settled Feb 2026 with no penalty but required business practice changes
- • Total indebtedness ~$31.5B as of Dec 31, 2025, representing significant leverage constraining capital allocation flexibility
- • Top 10 retail pharmacy chains represent ~47% of largest network; contracts nonexclusive and terminable on short notice
- • Goodwill and intangibles ~$73.5B (47% of total consolidated assets); VillageMD investment fully impaired, $2.7B loss recorded in 2024
- • AI litigation active: lawsuit claiming improper use of AI in claims evaluation process; generative AI risks flagged as unquantifiable regulatory exposure
Cigna FY2025 Key Financial MetricsXBRL
Revenue
$274.9B
▲ +11.2% YoY
Net Income
$6.0B
▲ +73.5% YoY
Operating Margin
3.3%
▼ -46bp YoY
Net Margin
2.2%
▲ +78bp YoY
ROE
14.3%
▲ +591bp YoY
Total Assets
$157.9B
▲ +1.3% YoY
EPS (Diluted)
$22.18
▲ +83.0% YoY
Operating Cash Flow
$9.6B
▼ -7.4% YoY
Source: XBRL data from Cigna FY2025 10-K filing on SEC EDGAR. All figures in USD.
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