Cigna Faces Challenges Amidst Market Variability
Financial Insights on Cigna’s Performance and Analyst Forecasts
Bloomfield, Connecticut-based The Cigna Group (CI) offers various insurance and related products both domestically and internationally. With a market cap of $81.4 billion, Cigna operates through its segments: Cigna Healthcare, Evernorth, and Other Operations.
Over the last year, Cigna stock has not fared well compared to the broader market. It has declined by 11.9% over the past 52 weeks, while the S&P 500 Index ($SPX) has surged 20.7% in the same period. However, looking at year-to-date performance, CI stock has increased by 6.9%, outperforming SPX’s 3.2% gains so far in 2025.
When comparing Cigna to the SPDR S&P Health Care Services ETF (XHS), it falls behind again, as the ETF saw an 11.4% gain over the past year and 10.3% in 2025.
Despite a wider uptrend in healthcare stocks in 2025, Cigna’s share price faced a setback. Following the release of mixed fourth-quarter results on January 30, the stock dropped 6.7%. The company reported robust pharmacy revenue growth, leading to a 28.4% year-over-year increase in total revenue to $65.6 billion, exceeding analysts’ expectations by 3.9%. Unfortunately, increased medical costs related to its stop-loss insurance product significantly impacted profitability. Adjusted income from operations fell 7.7% year-over-year to $1.8 billion, and the adjusted EPS of $6.64 came in 15.2% below consensus estimates, shaking investor confidence.
Looking ahead to fiscal 2025, which will conclude in December, analysts project an 8.9% year-over-year increase in non-GAAP earnings, targeting $8.93 per share. Cigna’s history of earnings surprises has been mixed; it has outperformed expectations in three of the last four quarters, while falling short once.
Among the 22 analysts reviewing Cigna’s stock, the consensus rating stands as a “Strong Buy,” which consists of 16 “Strong Buy” ratings, two “Moderate Buy” ratings, and four “Hold” ratings.
This outlook is slightly less optimistic than in the previous month, when 17 analysts had recommended “Strong Buy.”
On February 4, Truist Securities analyst David Macdonald adjusted Cigna’s price target down to $375, although the company continues to hold a “Buy” rating.
Cigna’s mean price target of $365.24 suggests a 23.7% potential upside from its current price. Notably, the highest price target of $410 represents a 38.9% upside possibility.
On the date of publication, Aditya Sarawgi did not hold any positions in the securities mentioned in this article. All information in this article is for informational purposes. For details, please view the Barchart Disclosure Policy.
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