CI

The Cigna Group stock research

Dec 31, 2024

FY2024 Q4

The Cigna Group (CI) Gross Margin — Quarter Ended Dec 31, 2024

Revenue and gross profit both increased compared to the prior quarter, while cost of revenue also rose, resulting in gross margin remaining stable. Compared to the same quarter one year earlier, revenue and cost of revenue were higher, gross profit was slightly higher, and gross margin weakened.

Gross margin takeaway

Quarter ended Dec 31, 2024 · FY2024 Q4

Revenue and gross profit both increased compared to the prior quarter, while cost of revenue also rose, resulting in gross margin remaining stable. Compared to the same quarter one year earlier, revenue and cost of revenue were higher, gross profit was slightly higher, and gross margin weakened.

  • The strongest observable margin driver is the stability of gross margin from the prior quarter, as the relationship among revenue, cost of revenue, and gross profit remained consistent.
  • Compared to the immediately preceding quarter, gross margin was unchanged. Compared to the same quarter one year earlier, gross margin was lower.

Gross margin snapshot

The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.

Gross margin

25.3%

Gross profit

$16.6B

Revenue

$65.6B

Cost of revenue

$49.0B

Quarter-over-quarter change

+0.0 pts

Year-over-year change

-5.7 pts

Quarterly gross margin trend

A four-quarter view of the revenue and direct-cost bridge behind gross margin.

PeriodRevenueGross profitCost of revenueGross margin
Mar 31, 2024$57.3B$15.8B$41.4B27.6%
Jun 30, 2024$60.5B$16.0B$44.5B26.5%
Sep 30, 2024$63.7B$16.1B$47.6B25.3%
Dec 31, 2024$65.6B$16.6B$49.0B25.3%

Quarterly comparisons

Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.

Previous-quarter change

Sep 30, 2024

+0.0 pts

Year-over-year change

Dec 31, 2023

-5.7 pts

What the margin says

Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.

The strongest observable margin driver is the stability of gross margin from the prior quarter, as the relationship among revenue, cost of revenue, and gross profit remained consistent.

Compared to the immediately preceding quarter, gross margin was unchanged. Compared to the same quarter one year earlier, gross margin was lower.

Monitor the relationship between revenue growth and cost of revenue growth in future quarters, as the year-over-year weakening of gross margin suggests a shift in that balance.