The Cigna Group stock research
FY2024 Q2
The Cigna Group (CI) Gross Margin — Quarter Ended Jun 30, 2024
For the quarter, revenue and gross profit increased, but cost of revenue grew more rapidly, leading to a lower gross margin compared to the prior quarter and the same quarter a year ago. The rise in cost of revenue outpaced the increase in revenue, compressing the margin.
Gross margin takeaway
Quarter ended Jun 30, 2024 · FY2024 Q2
For the quarter, revenue and gross profit increased, but cost of revenue grew more rapidly, leading to a lower gross margin compared to the prior quarter and the same quarter a year ago. The rise in cost of revenue outpaced the increase in revenue, compressing the margin.
- The margin was primarily driven by the relative growth rates of revenue and cost of revenue, with cost of revenue rising at a faster pace than revenue.
- Compared to the immediately preceding quarter, revenue and gross profit were higher but gross margin was lower. Versus the same quarter one year earlier, revenue and gross profit were also higher, while gross margin was lower.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
26.5%
Gross profit
$16.0B
Revenue
$60.5B
Cost of revenue
$44.5B
Quarter-over-quarter change
-1.2 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 |
|---|---|---|---|---|
| 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% |
| Jun 30, 2024 | $60.5B | $16.0B | $44.5B | 26.5% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 31, 2024
-1.2 pts
Year-over-year change
Jun 30, 2023
-4.7 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The margin was primarily driven by the relative growth rates of revenue and cost of revenue, with cost of revenue rising at a faster pace than revenue.
Compared to the immediately preceding quarter, revenue and gross profit were higher but gross margin was lower. Versus the same quarter one year earlier, revenue and gross profit were also higher, while gross margin was lower.
Monitor the trajectory of cost of revenue relative to revenue, particularly pharmacy and other service costs as highlighted in the filing.