The Cigna Group stock research
FY2025 Q3
The Cigna Group (CI) Gross Margin — Quarter Ended Sep 30, 2025
Revenue rose compared to both the prior quarter and the same quarter last year. Gross profit increased sequentially but declined year-over-year, while cost of revenue grew in both comparisons, leading to a lower gross margin.
Gross margin takeaway
Quarter ended Sep 30, 2025 · FY2025 Q3
Revenue rose compared to both the prior quarter and the same quarter last year. Gross profit increased sequentially but declined year-over-year, while cost of revenue grew in both comparisons, leading to a lower gross margin.
- The most observable driver of the gross margin change was the increase in cost of revenue as a proportion of revenue, which was higher in both the sequential and year-over-year comparisons. A concrete item to monitor is the trend in the composition of revenue and cost items, particularly pharmacy and medical cost components as noted in the filing.
- Gross margin was lower than the immediately preceding quarter and substantially lower than the same quarter one year earlier, with the year-over-year decline being more pronounced.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
20.4%
Gross profit
$14.2B
Revenue
$69.7B
Cost of revenue
$55.5B
Quarter-over-quarter change
-0.3 pts
Year-over-year change
-4.9 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, 2024 | $65.6B | $16.6B | $49.0B | 25.3% |
| Mar 31, 2025 | $65.5B | $17.1B | $48.4B | 26.1% |
| Jun 30, 2025 | $67.2B | $13.9B | $53.3B | 20.7% |
| Sep 30, 2025 | $69.7B | $14.2B | $55.5B | 20.4% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2025
-0.3 pts
Year-over-year change
Sep 30, 2024
-4.9 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The most observable driver of the gross margin change was the increase in cost of revenue as a proportion of revenue, which was higher in both the sequential and year-over-year comparisons. A concrete item to monitor is the trend in the composition of revenue and cost items, particularly pharmacy and medical cost components as noted in the filing.
Gross margin was lower than the immediately preceding quarter and substantially lower than the same quarter one year earlier, with the year-over-year decline being more pronounced.
Monitor the relationship between cost of revenue growth and revenue growth, as the widening gap has been a key factor in margin compression.