Centene Corporation stock research
FY2025 Q1
Centene (CNC) Gross Margin — Quarter Ended Mar 31, 2025
Revenue increased from both the prior quarter and the year-ago quarter. Gross profit rose compared to the prior quarter but was lower than the year-ago quarter, resulting in a gross margin that improved sequentially but weakened year over year.
Gross margin takeaway
Quarter ended Mar 31, 2025 · FY2025 Q1
Revenue increased from both the prior quarter and the year-ago quarter. Gross profit rose compared to the prior quarter but was lower than the year-ago quarter, resulting in a gross margin that improved sequentially but weakened year over year.
- The most notable factor was the increase in gross profit relative to the rise in revenue, which drove the sequential margin improvement. However, the gross margin remained below the prior-year level.
- Sequentially, gross margin improved as revenue and gross profit both increased. Compared to the same quarter last year, gross margin was lower despite higher revenue and gross profit.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
12.4%
Gross profit
$5.3B
Revenue
$42.5B
Cost of revenue
$698.0M
Quarter-over-quarter change
+2.0 pts
Year-over-year change
-0.6 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 |
|---|---|---|---|---|
| Jun 30, 2024 | $36.0B | $4.5B | $680.0M | 12.6% |
| Sep 30, 2024 | $36.9B | $4.0B | $692.0M | 10.9% |
| Dec 31, 2024 | $36.3B | $3.8B | $688.0M | 10.5% |
| Mar 31, 2025 | $42.5B | $5.3B | $698.0M | 12.4% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Dec 31, 2024
+2.0 pts
Year-over-year change
Mar 31, 2024
-0.6 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The most notable factor was the increase in gross profit relative to the rise in revenue, which drove the sequential margin improvement. However, the gross margin remained below the prior-year level.
Sequentially, gross margin improved as revenue and gross profit both increased. Compared to the same quarter last year, gross margin was lower despite higher revenue and gross profit.
Monitor the trend in cost of revenue, as it increased only modestly but may affect future margin comparisons.