The Cigna Group stock research
FY2024 Q3
The Cigna Group (CI) Gross Margin — Quarter Ended Sep 30, 2024
Revenue and cost of revenue both increased compared to the prior quarter and the same quarter last year, while gross profit rose slightly. Gross margin weakened versus both periods, indicating that cost of revenue grew faster than revenue.
Gross margin takeaway
Quarter ended Sep 30, 2024 · FY2024 Q3
Revenue and cost of revenue both increased compared to the prior quarter and the same quarter last year, while gross profit rose slightly. Gross margin weakened versus both periods, indicating that cost of revenue grew faster than revenue.
- Gross margin declined sequentially and year-over-year, driven by a proportionally larger increase in cost of revenue relative to revenue. The relationship between revenue growth and cost growth is the primary observable factor.
- Compared to the immediately preceding quarter, revenue was higher but gross margin was lower. Compared to the same quarter one year earlier, revenue was substantially higher, while gross margin was significantly lower.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
25.3%
Gross profit
$16.1B
Revenue
$63.7B
Cost of revenue
$47.6B
Quarter-over-quarter change
-1.2 pts
Year-over-year change
-6.1 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 |
|---|---|---|---|---|
| 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% |
| Sep 30, 2024 | $63.7B | $16.1B | $47.6B | 25.3% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2024
-1.2 pts
Year-over-year change
Sep 30, 2023
-6.1 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
Gross margin declined sequentially and year-over-year, driven by a proportionally larger increase in cost of revenue relative to revenue. The relationship between revenue growth and cost growth is the primary observable factor.
Compared to the immediately preceding quarter, revenue was higher but gross margin was lower. Compared to the same quarter one year earlier, revenue was substantially higher, while gross margin was significantly lower.
Monitor the trend in cost of revenue relative to revenue, as the gap widened in both sequential and year-over-year comparisons.