Cigna Shares Soar Following Strong Q4 Performance, Upgraded Guidance, and Dividend Increase

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Highlights

• Cigna surpassed profit and revenue expectations, issued optimistic guidance, and raised its dividend, fueled by growth in pharmacy and medical plan enrollments.
• The insurer increased its quarterly dividend by 14%, reflecting strong financial health.
• Cigna’s stock reached its highest price point since late 2022, signaling robust investor confidence.

Shares of The Cigna Group (CI) climbed to their peak in over a year after the healthcare giant reported impressive quarterly results, upgraded its earnings forecast, and announced a dividend increase amid expanding pharmacy and medical plan customer bases.

For Q4, Cigna posted earnings per share (EPS) of $6.79 and revenue rose 11.7% to $51.11 billion, both surpassing analysts’ projections.

Pharmacy benefits sales grew 12% to $40.52 billion, while health insurance sales surged 17% to $13.01 billion. The company’s pharmacy benefits membership rose 5% to 98.6 million, and health insurance customers increased 10% to 19.8 million.

Cigna’s medical care ratio, indicating the portion of premiums paid out as claims, stood at 82.2%, better than anticipated, underscoring operational efficiency.

Looking ahead, Cigna forecasts full-year revenue exceeding $235 billion and expects EPS to reach at least $28.25, slightly above prior guidance but just under analyst estimates.

Additionally, the insurer declared a 14% dividend hike, raising the quarterly payout from $1.23 to $1.40 per share, payable on March 21 to shareholders of record as of March 6.

As of 11:50 a.m. ET, Cigna’s shares were up 5.8% at $325.27, trading near their record high last seen in December 2022.

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