Shares of The Cigna Group (CI) plummeted 5.30% in intraday trading on Thursday, despite the health insurance giant reporting better-than-expected second-quarter revenue. The sharp decline comes as investors grapple with concerns over rising costs and the company's adjusted operating income falling short of estimates.
Cigna reported Q2 adjusted revenue of $67.13 billion, significantly surpassing the IBES estimate of $62.46 billion. However, the company's adjusted operating income of $1.93 billion fell well below the expected $2.31 billion. While Cigna's adjusted earnings per share of $7.20 slightly beat the analyst estimate of $7.15, the miss on operating income appears to have spooked investors.
Adding to the market's unease, Cigna executives indicated in the conference call that elevated cost trends are expected to persist into 2026. The company also suggested it would likely implement further price increases next year to counteract these rising costs. Despite these challenges, Cigna reaffirmed its 2025 adjusted EPS outlook of at least $29.60, which is slightly below the current IBES estimate of $29.68. The combination of cost pressures and a cautious outlook seems to have overshadowed the revenue beat, leading to today's significant stock decline.
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