Cigna Group’s pharmacy benefit manager has reached a settlement with the Federal Trade Commission that is expected to save American patients up to $7 billion in out-of-pocket insulin costs over the next decade while providing millions in new annual revenue to local pharmacies. The agreement comes alongside Cigna’s strong quarterly earnings report.
The FTC enforcement action, which also targeted Caremark Rx and OptumRx, was paused in January with a 14-day suspension of proceedings, pushing back all discovery, filing, and decision deadlines and delaying the evidentiary hearing until July 1. Oral arguments on the pharmacy benefit managers’ motion to dismiss were rescheduled, moving from January 22 to February 5.
Cigna reported fourth-quarter 2025 revenue of $72.49 billion, exceeding analyst estimates of $69.83 billion, with revenues increasing 10% year over year. Adjusted earnings reached $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. Total pharmacy customers increased 4% to 123.6 million due to new sales and continued expansion of relationships.
Guidance and Dividend Growth
Cigna expects fiscal 2026 revenues of approximately $280 billion. The company sees adjusted income from operations of at least $7.95 billion, or at least $30.25 per share. Evernorth Health Services’ revenues increased 17% to $63.06 billion, while Pharmacy Benefit Services sales reached $36.34 billion, up 20%, reflecting strong organic growth including existing client relationships and new business. Cigna’s Cigna Healthcare Medical Care Ratio was 88% compared to 87.9% a year ago, with the company expecting the ratio to be between 83.7% and 84.7% in fiscal 2026.
In response to the strong performance, Cigna declared a cash quarterly dividend of $1.56 per share, up from $1.51. At publication on Thursday, Cigna stock was up 3.53% at $281.29.
This article is an AI-assisted summary. All facts and figures are drawn from the original report: https://www.benzinga.com/markets/earnings/26/02/50423150/ftc-settlement-with-cignas-pharmacy-benefit-manager-promises-cheaper-insulin-boosts-dividend-on-