CI

The Cigna Group stock research

Dec 31, 2025

FY2025 Q4

The Cigna Group (CI) Gross Margin — Quarter Ended Dec 31, 2025

Revenue and gross profit both increased sequentially, but cost of revenue rose at a similar pace, leaving gross margin nearly unchanged from the prior quarter. Compared with the same quarter last year, revenue was higher while gross profit declined and cost of revenue increased substantially, resulting in a markedly lower gross margin.

Gross margin takeaway

Quarter ended Dec 31, 2025 · FY2025 Q4

Revenue and gross profit both increased sequentially, but cost of revenue rose at a similar pace, leaving gross margin nearly unchanged from the prior quarter. Compared with the same quarter last year, revenue was higher while gross profit declined and cost of revenue increased substantially, resulting in a markedly lower gross margin.

  • The most evident margin driver is the shift in the relationship between cost of revenue and revenue. From the year-ago quarter, cost of revenue increased while gross profit fell, indicating that cost growth outpaced revenue growth.
  • Compared to the immediately preceding quarter, revenue, gross profit, and cost of revenue all increased, while gross margin edged slightly lower. Compared to the same quarter one year earlier, revenue was higher, but gross profit decreased and cost of revenue increased, resulting in a lower gross margin.

Gross margin snapshot

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

Gross margin

20.3%

Gross profit

$14.7B

Revenue

$72.5B

Cost of revenue

$57.8B

Quarter-over-quarter change

-0.1 pts

Year-over-year change

-5.1 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, 2025$65.5B$17.1B$48.4B26.1%
Jun 30, 2025$67.2B$13.9B$53.3B20.7%
Sep 30, 2025$69.7B$14.2B$55.5B20.4%
Dec 31, 2025$72.5B$14.7B$57.8B20.3%

Quarterly comparisons

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

Previous-quarter change

Sep 30, 2025

-0.1 pts

Year-over-year change

Dec 31, 2024

-5.1 pts

What the margin says

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

The most evident margin driver is the shift in the relationship between cost of revenue and revenue. From the year-ago quarter, cost of revenue increased while gross profit fell, indicating that cost growth outpaced revenue growth.

Compared to the immediately preceding quarter, revenue, gross profit, and cost of revenue all increased, while gross margin edged slightly lower. Compared to the same quarter one year earlier, revenue was higher, but gross profit decreased and cost of revenue increased, resulting in a lower gross margin.

Monitor cost of revenue trends, particularly the pharmacy and medical cost components, which the filing notes are part of subsidiary-level cash requirements.