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October 15, 2025 • 3 min read
The Cigna Group, a global health services giant, recently released its financial results for the second quarter of 2025. To understand the company's performance, we're diving into the numbers from its latest quarterly report filed with the SEC. The filing reveals powerful growth in its health services division, even as its traditional insurance arm undergoes a significant transformation.
For the three months ending June 30, 2025, Cigna reported total revenues of $67.2 billion, a notable 11% increase from the $60.5 billion reported in the same period last year. However, net income remained steady at $1.63 billion.
The following flow diagram illustrates how Cigna's revenue is generated and allocated across its various costs to arrive at its net income.
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You might notice a negative revenue figure labeled "Corporate and Eliminations." This -$1.6 billion isn't a loss but an important accounting adjustment. It represents the elimination of intersegment revenues—transactions that occur between Cigna's own divisions, such as Evernorth providing pharmacy services to Cigna Healthcare's insurance members. This adjustment is necessary to avoid double-counting revenue at the consolidated level and to provide an accurate picture of the company's sales to external customers.
The primary driver behind Cigna's revenue surge is its Evernorth Health Services segment. This division, which includes the massive pharmacy benefit manager (PBM) Express Scripts, specialty pharmacy services, and care solutions, has become the company's powerhouse.
Evernorth's revenue jumped 17% to $57.8 billion for the quarter, now accounting for over 86% of Cigna's total revenue. According to the filing, this impressive growth was fueled by "higher utilization of prescription drugs from customer growth." This highlights Cigna's successful strategic focus on expanding its less capital-intensive, high-volume services business.
While Evernorth soared, the Cigna Healthcare segment, the company's traditional insurance arm, reported a decline in revenue to $10.8 billion from $13.2 billion a year ago. This was largely expected and is a direct result of the company's recent divestiture of its Medicare Advantage business. The sale is part of a broader strategy to refine its insurance portfolio.
A key metric for any health insurer is the medical care ratio (MCR), which measures the portion of premium revenue spent on patient medical claims. A higher MCR indicates lower profitability. Cigna Healthcare's MCR increased to 83.2% from 82.3% in the prior year, which the company attributed to higher costs in its stop-loss business—a type of insurance that protects self-funded employers from catastrophic claims.
Cigna's Q2 results paint a clear picture of a company in transition. It is successfully leveraging its Evernorth segment to drive substantial top-line growth, cementing its position as a dominant force in the broader health services market beyond just insurance.
This strategic shift places Cigna in direct competition not only with traditional insurers like UnitedHealth Group and Elevance Health—who also have their own large health services arms—but also with major pharmacy players. The challenge ahead will be to manage the profitability of this evolving business mix, especially as its high-growth Evernorth segment operates on thinner margins than the traditional insurance business. For now, Cigna is demonstrating strong momentum in its chosen direction.
Last updated: October 15, 2025