The Cigna Group stock research
FY2024 Q1
The Cigna Group (CI) Gross Margin — Quarter Ended Mar 31, 2024
Revenue increased compared to both the prior quarter and the same quarter last year, while gross profit was slightly lower than the prior quarter but higher than a year ago. Cost of revenue grew more than proportionally, causing gross margin to weaken sequentially and year-over-year.
Gross margin takeaway
Quarter ended Mar 31, 2024 · FY2024 Q1
Revenue increased compared to both the prior quarter and the same quarter last year, while gross profit was slightly lower than the prior quarter but higher than a year ago. Cost of revenue grew more than proportionally, causing gross margin to weaken sequentially and year-over-year.
- The strongest observable driver of gross margin was the relationship between revenue and cost of revenue, as cost of revenue increased at a faster pace than revenue, compressing margin.
- Compared to the immediately preceding quarter, gross margin was lower, driven by a higher cost of revenue relative to revenue. Compared to the same quarter one year earlier, gross margin also weakened, with cost of revenue growing faster than revenue.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
27.6%
Gross profit
$15.8B
Revenue
$57.3B
Cost of revenue
$41.4B
Quarter-over-quarter change
-3.4 pts
Year-over-year change
-4.7 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 |
|---|---|---|---|---|
| Jun 30, 2023 | $48.6B | $15.1B | $33.4B | 31.2% |
| Sep 30, 2023 | $49.0B | $15.4B | $33.6B | 31.4% |
| Dec 31, 2023 | $51.1B | $15.9B | $35.3B | 31.0% |
| Mar 31, 2024 | $57.3B | $15.8B | $41.4B | 27.6% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Dec 31, 2023
-3.4 pts
Year-over-year change
Mar 31, 2023
-4.7 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable driver of gross margin was the relationship between revenue and cost of revenue, as cost of revenue increased at a faster pace than revenue, compressing margin.
Compared to the immediately preceding quarter, gross margin was lower, driven by a higher cost of revenue relative to revenue. Compared to the same quarter one year earlier, gross margin also weakened, with cost of revenue growing faster than revenue.
Monitor the trend in cost of revenue relative to revenue, as its faster growth has been the primary factor behind margin compression.