Cigna Group posts specialty-care profit surge, pharmacy benefit decline

Research analysts at Raymond James Financial downgraded Cigna Group (NYSE:CI) from a strong‑buy to an Outperform rating, setting a $320 price objective. Other firms such as Cantor Fitzgerald, Wells Fargo, Weiss Ratings, Guggenheim and Morgan Stanley recently raised their price targets, leaving the stock with a consensus Moderate Buy rating and a $340.60 target.

In its second‑quarter earnings, Cigna's Evernorth Health Services reported that Specialty and Care Services generated $26.97 billion in adjusted revenue, up 4%, and pre‑tax operating income rose 22% to $1.05 billion, accounting for about 63% of Evernorth's total operating profit. By contrast, Pharmacy Benefit Services saw revenue increase 8% to $34.5 billion, but pre‑tax operating income fell 27% to $609 million, representing roughly 37% of the segment’s profit. Overall, Evernorth’s adjusted revenue grew 6% to $61.47 billion, while adjusted pre‑tax income slipped 2% to $1.66 billion, with the operating margin decreasing to 2.7% from 2.9%.