The Cigna Group stock research
FY2023 Q2
The Cigna Group (CI) Gross Margin — Quarter Ended Jun 30, 2023
Revenue increased compared to both the prior quarter and the same quarter last year, while gross profit was stable versus the prior quarter and higher year over year. Cost of revenue rose in both comparisons, resulting in a gross margin that weakened slightly from the prior quarter and was marginally lower than the same quarter a year ago.
Gross margin takeaway
Quarter ended Jun 30, 2023 · FY2023 Q2
Revenue increased compared to both the prior quarter and the same quarter last year, while gross profit was stable versus the prior quarter and higher year over year. Cost of revenue rose in both comparisons, resulting in a gross margin that weakened slightly from the prior quarter and was marginally lower than the same quarter a year ago.
- The relationship between revenue and cost of revenue drove the gross margin outcome. Revenue growth was accompanied by a proportionally larger increase in cost of revenue compared to the prior quarter, which compressed the margin.
- Compared to the immediately preceding quarter, gross margin weakened as cost of revenue grew faster than revenue. Versus the same quarter one year earlier, gross margin was slightly lower, with revenue and cost of revenue both higher.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
31.2%
Gross profit
$15.1B
Revenue
$48.6B
Cost of revenue
$33.4B
Quarter-over-quarter change
-1.2 pts
Year-over-year change
-0.3 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Mar 31, 2023 | $46.5B | $15.1B | $31.5B | 32.4% |
| Jun 30, 2023 | $48.6B | $15.1B | $33.4B | 31.2% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 31, 2023
-1.2 pts
Year-over-year change
Jun 30, 2022
-0.3 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The relationship between revenue and cost of revenue drove the gross margin outcome. Revenue growth was accompanied by a proportionally larger increase in cost of revenue compared to the prior quarter, which compressed the margin.
Compared to the immediately preceding quarter, gross margin weakened as cost of revenue grew faster than revenue. Versus the same quarter one year earlier, gross margin was slightly lower, with revenue and cost of revenue both higher.
Monitor the trajectory of cost of revenue relative to revenue, as its growth rate has been a key factor in margin changes.