Cigna (CI) AI Stock Analysis

• Market Cap: $76.65B
• Dividend Yield: 2.21%
• Average Volume (3M): 1.67M
• Price to Earnings (P/E): 13.1
• Beta (1Y): 0.19
• Revenue Growth: 16.75%
• EPS Growth: 113.48%
• Country: US
• Employees: 71,295
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Healthcare Plans
• EPS (TTM): 8.08
• Shares Outstanding: 263,528,300
• 10 Day Avg. Volume: 1,389,614
• 30 Day Avg. Volume: 1,672,572
• PEG Ratio: 0.15
• Price to Book (P/B): 1.75
• Price to Sales (P/S): 0.27
• P/FCF Ratio: 8.73
• Enterprise Value/Market Cap: 1.30
• Enterprise Value/Revenue: 0.36
• Enterprise Value/Gross Profit: 3.83
• Enterprise Value/Ebitda: 8.31
• 1Y Price Target: $339.00
• Price Target Upside: 19.40% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 14
• EPS Forecast (FY): 30.32
• Revenue Forecast (FY): $284.87B

• Rating: 76 Outperform
• Price Target: $329.00 ▲(15.87% Upside)
• Action: Reiterated Date: 03/03/26
• Date: Action: Reiterated 03/03/26

The score is driven primarily by solid fundamentals and cash generation, supported by an attractive valuation (low-teens P/E plus dividend). Technicals are constructive with positive momentum. Offsetting factors include margin/medical cost pressure and near-term cash flow headwinds tied to the PBM transition, alongside execution considerations during the CEO handover.

Positive Factors

Consistent free cash flow generation

Cigna’s consistently strong free cash flow that tracks close to reported earnings provides durable funding for dividends, buybacks, and strategic investments. This cash-generation capacity supports capital returns and balance sheet flexibility through cyclical troughs and transformational investments over multiple years.

Revenue scaling and specialty growth

Specialty pharmacy and care services have meaningfully scaled, raising the share of income from higher-growth, differentiated offerings. A larger specialty platform diversifies revenue, supports higher-margin streams, and underpins multi-year organic growth as chronic and specialty drug demand continues to expand.

Regulatory clarity from FTC settlement and PBM reform

The FTC settlement and Cigna’s shift to a rebate-free, fee-based PBM model reduce regulatory and litigation uncertainty and align the company with emerging industry structure. This structural clarity aids long-term client relationships, product positioning and predictable operating models across years.

Negative Factors

Elevated medical cost trends (MCR)

Management’s guidance of a materially higher medical care ratio reflects persistent cost pressures that compress underwriting margins. Sustained elevated MCRs reduce operating earnings leverage, constrain margin recovery even amid revenue growth, and require sustained pricing or utilization improvements to restore prior profitability levels.

PBM transition cash-flow and execution risk

Transitioning to a rebate-free PBM model demands significant near-term investment and reduces PBM cash contribution, pressuring operating cash flow. The multi-year adoption timeline creates execution risk: slower client migration or implementation issues could depress earnings and cash conversion over the 2–4 year transition window.

Margin compression and below-peak ROE

Although scale and revenue have grown, margins and ROE have not returned to prior-cycle peaks, implying less efficient capital use. Structural cost trends and mix shifts toward admin/fee models may limit future ROE recovery, making sustained high returns on invested capital harder without material margin improvement.

Cigna Business Overview & Revenue Model

Company Description

The Cigna Group provides insurance and related products and services in the United States. Its Evernorth segment provides a range of coordinated and point solution health services, including pharmacy, benefits management, care delivery and management, and intelligence solutions to health plans, employers, government organizations, and health care providers. The company's Cigna Healthcare segment offers medical, pharmacy, behavioral health, dental, vision, health advocacy programs, and other products and services for insured and self-insured customers; Medicare Advantage, Medicare Supplement, and Medicare Part D plans for seniors, as well as individual health insurance plans to on and off the public exchanges; and health care coverage in its international markets, as well as health care benefits for mobile individuals and employees of multinational organizations. The company also offers permanent insurance contracts sold to corporations to provide coverage on the lives of certain employees for financing employer-paid future benefit obligations. It distributes its products and services through insurance brokers and consultants; directly to employers, unions and other groups, or individuals; and private and public exchanges. The company was founded in 1792 and is headquartered in Bloomfield, Connecticut.

How the Company Makes Money

Cigna generates revenue primarily through premiums collected from its health insurance policies, which include individual, employer-sponsored, and government health plans. The company also earns revenue from its pharmacy benefit management (PBM) services, where it manages prescription drug benefits for clients and receives fees for its services. Additional revenue streams include administrative fees from self-insured clients, provider payments, and specialty services such as dental and disability insurance. Strategic partnerships with healthcare providers, technology companies, and pharmaceutical manufacturers further support Cigna's revenue growth by enhancing their service offerings and expanding their market reach.

Cigna Financial Statement Overview

Summary

Strong, consistent cash generation and improving 2025 performance support the score, with revenue scaling meaningfully. Offsetting factors are margin compression versus earlier years and ROE below prior-cycle peaks, though leverage appears manageable.

Income Statement

Revenue has scaled meaningfully over the last several years, with 2025 showing strong year-over-year growth versus a modest increase in 2024. Profitability remains positive but margins have trended down from earlier years (notably since 2020–2022), with 2025 net margin improving versus 2024 but still below 2022–2023 levels. Overall, the income statement reflects solid growth and earnings power, tempered by margin compression and some year-to-year variability in profits.

Balance Sheet

Leverage looks manageable, with debt running at roughly three-quarters of equity in 2025 and generally stable over time. Equity has held up and total assets have grown, supporting balance sheet scale. Returns on equity improved in 2025 versus 2024, but are below the stronger levels seen in 2020–2022, indicating somewhat less efficient profit generation on the current capital base.

Cash Flow

Cash generation is a clear strength: free cash flow is strong and consistently tracks close to reported earnings (roughly mid-to-high 80% of net income across the period). 2025 free cash flow growth rebounded nicely after a slight decline in 2024. A watch item is that operating cash flow relative to revenue is modest and has not consistently expanded, but absolute cash flow levels remain healthy and supportive.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	274.95B	247.12B	195.26B	180.52B	174.07B
Gross Profit	25.99B	25.96B	25.18B	23.50B	22.95B
EBITDA	11.61B	11.45B	10.85B	10.44B	9.96B
Net Income	5.96B	3.43B	5.16B	6.70B	5.37B
Balance Sheet
Total Assets	157.92B	155.88B	152.76B	143.88B	154.89B
Cash, Cash Equivalents and Short-Term Investments	7.68B	8.21B	8.75B	6.83B	6.00B
Total Debt	31.46B	31.97B	30.93B	31.55B	34.27B
Total Liabilities	116.05B	114.64B	106.41B	98.98B	107.70B
Stockholders Equity	41.71B	41.03B	46.22B	44.87B	47.11B
Cash Flow
Free Cash Flow	8.39B	8.96B	10.24B	7.36B	6.04B
Operating Cash Flow	9.60B	10.36B	11.81B	8.66B	7.19B
Investing Cash Flow	-4.41B	-2.10B	-5.17B	3.10B	-3.61B
Financing Cash Flow	-6.42B	-7.65B	-4.29B	-11.24B	-8.21B

Cigna Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 283.93
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CI, the sentiment is Positive. The current price of 283.93 is below the 20-day moving average (MA) of 285.82, above the 50-day MA of 279.95, and below the 200-day MA of 289.30, indicating a bullish trend. The MACD of 2.55 indicates Positive momentum. The RSI at 57.40 is Neutral, neither overbought nor oversold. The STOCH value of 70.45 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CI.

Cigna Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CI	76 Outperform	$76.65B	13.07	14.40%	2.21%	16.75%	113.48%
ELV	64 Neutral	$64.90B	12.69	13.29%	1.99%	11.96%	-11.11%
UNH	63 Neutral	$267.16B	22.16	―	2.69%	10.48%	24.25%
CVS	55 Neutral	$103.89B	57.44	2.35%	3.41%	6.71%	-90.11%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
CNC	51 Neutral	$21.93B	-3.27	-28.79%	―	14.92%	-286.72%
HUM	47 Neutral	$22.59B	19.38	6.98%	1.38%	9.87%	-5.58%

Cigna Corporate Events

Cigna Announces CEO Succession and Leadership Transition Plan

On February 25, 2026, The Cigna Group’s board approved a leadership transition under which long-serving chief executive David M. Cordani will retire as CEO on July 1, 2026 and become executive chair, while president and COO Brian C. Evanko, a nearly 30-year company veteran with broad operational and financial experience, will be promoted to CEO and join the board. The board also reshaped its leadership and committee structure and set new compensation packages for both executives, while reaffirming its full-year 2026 outlook for consolidated adjusted income from operations of at least $30.25 per share, including at least $6.9 billion from Evernorth and $4.5 billion from Cigna Healthcare, signaling confidence that the strategic and financial trajectory can be maintained through the succession.

The CEO succession marks a planned handover after nearly 17 years of Cordani’s leadership, during which Cigna evolved into a much larger, more diversified health company that emphasizes innovation in data, technology and AI-enabled services. By keeping Cordani as executive chair and elevating Evanko—who already oversees the company’s core business portfolio—the board aims to ensure continuity in strategy and governance at a time of rapid change in the health care sector, providing investors and other stakeholders with a measure of stability around growth and earnings expectations for 2026 despite the management shift.

The most recent analyst rating on (CI) stock is a Buy with a $370.00 price target. To see the full list of analyst forecasts on Cigna stock, see the CI Stock Forecast page.

Cigna Reaffirms 2026 Adjusted Earnings Outlook to Investors

The Cigna Group said it will use upcoming meetings with investors and analysts to reaffirm its previously stated outlook for full-year 2026 consolidated adjusted income from operations of at least $30.25 per share. Management emphasized that this non-GAAP metric is its primary profitability measure, designed to strip out investment gains and losses, amortization of acquired intangibles, special items, and certain joint-venture results to better highlight underlying operating trends.

The company cautioned that it cannot reasonably reconcile this forward-looking adjusted income figure to GAAP shareholders’ net income because future investment results and special items are inherently unpredictable and could materially affect reported earnings. Cigna also reiterated that its projections are subject to a wide range of risks, including healthcare cost pressures, regulatory and litigation exposures, technology and cybersecurity challenges, competitive dynamics, and macroeconomic volatility that could cause actual 2026 results to differ materially.

The most recent analyst rating on (CI) stock is a Buy with a $322.00 price target. To see the full list of analyst forecasts on Cigna stock, see the CI Stock Forecast page.