Cigna $CI ( ▲ 4.72% ) delivered a solid fourth quarter, topping Wall Street’s expectations on both earnings and revenue. But the focus quickly shifted to its 2026 outlook, which came in a bit softer than hoped and tempered the enthusiasm.
In the health insurance world, strong recent results are not always enough if future costs look uncertain.
Q4 Performance Comes In Strong
For the final quarter of 2025, Cigna reported adjusted earnings per share of $8.08, beating analyst estimates. Revenue reached $72.4 billion, also well above expectations.
The results show the company continues to execute well operationally, even as the broader health insurance sector deals with rising medical expenses and utilization trends.
Guidance Suggests a More Challenging Year Ahead
Looking to 2026, Cigna expects adjusted EPS of at least $30.25, just below what analysts had been modeling. Revenue guidance of about $280 billion also fell short of Wall Street’s forecasts.
The company’s projected medical cost ratio, a key measure of how much of premium revenue goes toward paying claims, is expected to run slightly higher than analysts had anticipated. That signals continued pressure from elevated healthcare costs.
Still a Relative Bright Spot
Despite the cautious outlook, Cigna $CI has generally been holding up better than many of its peers in a tough environment for health insurers. Investors will likely be watching closely to see whether the company can continue managing costs effectively while maintaining growth in its services and insurance businesses.
For now, the story is one of solid execution today, but tighter margins and cost headwinds shaping expectations for tomorrow.