Cigna Shares Fall Over 10% After Disappointing Q2 Earnings

The Cigna Group (NYSE:CI) has experienced a significant stock decline, dropping over 10% in one trading session and down more than 17% month-to-date amid flat earnings performance in Q2 and cautious investor sentiment. Despite revenues rising 11% to $67.18 billion, net income remained flat at $1.5 billion, driven by growth in Evernorth Health Services and specialty pharmacy, as highlighted by CEO David Cordani. Analysts have mixed views, with Oppenheimer lowering its price target to $365 but maintaining an Outperform rating, citing steady growth and successful navigation of managed care challenges, while Barclays cut its price target from $385 to $354 but kept an Overweight rating. Cigna's business is anchored in pharmacy benefit management and health insurance, with significant contracts including the Department of Defense and Centene, serving 17 million U.S. and 2 million international medical members. The stock is currently trading near its lowest levels since late 2024, reflecting a 25.5% drop from its 52-week high, and some analysts suggest AI stocks may offer better short-term investment opportunities. Overall, while Cigna shows robust revenue growth and a strong market position, investor concerns about profitability and earnings stagnation have pressured its stock price.