The Cigna Group (CI) Q4 2023 earnings summary

Executive summary

• FY23 revenue was $195.3B and adjusted income from operations was $7.448B, or $25.09/share, versus $7.3B and $23.36/share in 2022.

• Q4 adjusted income from operations rose 30% YoY to $1.999B, or $6.79/share, with contributions from Evernorth and Cigna Healthcare.

Financial highlights

• FY23 shareholders’ net income was $5.164B, or $17.39/share, versus $6.704B, or $21.41/share, in 2022.

• Q4 revenue was $51.114B, up 12% YoY; shareholders’ net income was $1.029B, or $3.49/share.

• Q4 net income included a $552M after-tax loss tied primarily to business-sale losses, a deferred tax benefit and an organizational efficiency charge.

Outlook and guidance

• FY24 adjusted EPS guidance is at least $28.25; adjusted income from operations is at least $8.025B consolidated, $7.0B for Evernorth and $4.75B for Cigna Healthcare.

• FY24 adjusted revenue guidance is at least $235B and operating cash flow at least $11B; weighted average shares are projected at 282M–286M.

• FY24 medical customer guidance is ~19.3M; MCR is 81.7%–82.7%, adjusted SG&A ratio ~6.1% and adjusted effective tax rate 20.5%–21.0%.

• Long-term targets include 6%–8% average annual adjusted earnings growth and 4%–5% contribution from accretive capital deployment, for 10%–13% targeted annual growth, plus dividends.