Why Cigna Stock Is Plummeting Today

Core Viewpoint - Cigna's stock experienced a significant decline following disappointing earnings results and guidance, despite a mixed performance in the broader market [1] Financial Performance - Cigna reported Q4 revenue of $65.65 billion, surpassing Wall Street's estimate of$63.44 billion, but faced a notable earnings-per-share (EPS) miss, delivering $6.64 per share compared to the expected$7.82 [2] - The company's medical cost ratio was reported at 87.9%, exceeding the anticipated 84.7%, indicating higher medical expenses relative to premiums [2] Future Outlook - CEO David Cordani indicated that Cigna is implementing corrective actions to address short-term pressures and is focused on advancing its long-term growth strategy amid rising costs [3] - The company anticipates it will take two years to recover margins affected by higher-than-expected costs, forecasting EPS of $29.50 for 2025, lower than Wall Street's expectation of$31.50 [3] Shareholder Actions - In a positive development for shareholders, Cigna's board increased the quarterly dividend by 8% and authorized a $6 billion increase in share repurchases [4]