Cigna raises 2025 outlook despite stop-loss cost pressure

Transcript intelligence

What changed

Management raised the 2025 outlook, highlighted roughly 50% eligible Humira-script uptake and the Stelara biosimilar launch, increased repurchase authorization, and described new customer investments. The main offset was higher stop-loss medical costs in Q4.

Guidance delta

Management raised its outlook to at least $252 billion of adjusted revenue and $29.50 of adjusted EPS for 2025.

Key takeaways

• Full-year revenue rose 27% to $247 billion, while Q4 earnings missed expectations because of higher stop-loss costs.
• Evernorth specialty biosimilars reached about 50% uptake among eligible Humira prescriptions, and Cigna introduced a Stelara biosimilar.
• Cigna returned $8.6 billion to shareholders, raised its dividend 8% to $1.51, and increased share-repurchase authorization to $10.3 billion.
• Management outlined $150 million of new investments and expects the Medicare business sale to close in Q1 2025, subject to approvals.

Management priorities

• Expand Humira and Stelara biosimilar adoption and related patient support.
• Advance Express Scripts initiatives focused on pharmacy-counter affordability and cost transparency.
• Complete the Medicare divestiture, invest in patient- and provider-facing initiatives, and use proceeds primarily for additional repurchases.