The Cigna Group stock research
FY2023 Q3
The Cigna Group (CI) Gross Margin — Quarter Ended Sep 30, 2023
Revenue, gross profit, and cost of revenue all increased compared with the prior quarter and the same quarter a year ago. Gross margin improved in both comparisons, reflecting a stronger relationship between gross profit and revenue.
Gross margin takeaway
Quarter ended Sep 30, 2023 · FY2023 Q3
Revenue, gross profit, and cost of revenue all increased compared with the prior quarter and the same quarter a year ago. Gross margin improved in both comparisons, reflecting a stronger relationship between gross profit and revenue.
- The expansion of gross margin from the prior year and the prior quarter is the most notable driver, as gross profit grew faster than revenue. The company's filing discusses segment reporting and risk factors but does not attribute the margin change to any specific cause.
- Sequentially, revenue and gross profit were higher while cost of revenue also increased. Year over year, all three metrics were higher, with gross margin showing improvement.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
31.4%
Gross profit
$15.4B
Revenue
$49.0B
Cost of revenue
$33.6B
Quarter-over-quarter change
+0.2 pts
Year-over-year change
+1.6 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% |
| Sep 30, 2023 | $49.0B | $15.4B | $33.6B | 31.4% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2023
+0.2 pts
Year-over-year change
Sep 30, 2022
+1.6 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The expansion of gross margin from the prior year and the prior quarter is the most notable driver, as gross profit grew faster than revenue. The company's filing discusses segment reporting and risk factors but does not attribute the margin change to any specific cause.
Sequentially, revenue and gross profit were higher while cost of revenue also increased. Year over year, all three metrics were higher, with gross margin showing improvement.
Monitor the trajectory of cost of revenue relative to revenue, as it is the largest component of the income statement and directly influences gross margin.