The Federal Trade Commission on Wednesday finalized a major settlement with Cigna Group’s (NYSE:CI) pharmacy benefit manager Express Scripts, aimed at dismantling anticompetitive practices that have historically inflated the cost of medications.
• Cigna Group shares are climbing with conviction. What’s driving CI stock higher?
Insulin Lawsuit
The agreement is expected to save American patients up to $7 billion in out-of-pocket insulin costs over the next decade while funneling millions in new annual revenue to local pharmacies.
In January, the FTC approved a 14-day suspension of proceedings.
The stay pushes back all discovery, filing, and decision deadlines and delays the evidentiary hearing until July 1.
Oral arguments on the PBMs’ motion to dismiss were also rescheduled, moving from Jan. 22 to Feb. 5. The pause applies to all respondents in the case.
In September 2024, the FTC filed a formal complaint against three major pharmacy benefit managers — CVS Health Inc.'s (NYSE:CVS) Caremark, Cigna’s Express Scripts, and UnitedHealth Group Inc.'s (NYSE:UNH) Optum — for allegedly engaging in unfair and anticompetitive practices that have inflated the list price of insulin medications.
The enforcement action also targeted Caremark Rx and OptumRx.
The settlement mandates increased transparency, including the disclosure of kickbacks paid to brokers and mandatory drug-level reporting. These changes are designed to align with federal price transparency laws and pave the way for full public participation in the TrumpRx program.
Earnings Snapshot
On Thursday, the health care company reported fourth-quarter 2025 revenue of $72.49 billion, beating analyst estimates of $69.83 billion.
Revenues increased 10% year over year, primarily driven by Evernorth Health Services, and include growth of existing client relationships and strong specialty pharmacy growth.
The company reported adjusted earnings of $8.08 per share, beating analysts' estimates of $7.88.
Adjusted income from operations for the quarter increased 16% to $2.15 billion, driven by higher contributions from Cigna Healthcare and Evernorth Health Services.
Total customer relationships increased 3% to 188.4 million, reflecting new sales and the continued expansion of relationships in Pharmacy Benefit Services and Behavioral Care, partially offset by the HCSC transaction.
Total pharmacy customers increased 4% to 123.6 million due to new sales and the continued expansion of relationships. Total medical customers decreased 5% to 18.1 million.
Evernorth Health Services’ revenues increased 17% to $63.06 billion, and Pharmacy Benefit Services sales reached $36.34 billion, up 20%, reflecting strong organic growth, including the growth of existing client relationships and new business.
Cigna Healthcare’s sales decreased 16% to $11.17 billion. The medical care ratio was 88% compared to 87.9% a year ago.
Outlook
Cigna expects fiscal 2026 revenues of approximately $280 billion compared to the consensus of $283.86 billion.
The company sees adjusted income from operations of at least $7.95 billion, or at least $30.25 per share, versus the consensus of $30.36.
Cigna Healthcare Medical Care Ratio is expected to be between 83.7% and 84.7%.
The company expects medical customers of around 18.1 million.
Dividend Increase
Cigna declared a cash quarterly dividend of $1.56 per share, up from $1.51.
CI Price Action: Cigna stock is up 3.53% at $281.29 at publication on Thursday, according to Benzinga Pro data.
