Centene Corporation stock research
FY2025 Q2
Centene (CNC) Gross Margin — Quarter Ended Jun 30, 2025
Revenue was flat compared to the prior quarter and higher versus the same quarter last year. Gross margin weakened significantly from both the preceding quarter and the year-ago quarter, driven by a substantially lower gross profit despite a reduction in cost of revenue.
Gross margin takeaway
Quarter ended Jun 30, 2025 · FY2025 Q2
Revenue was flat compared to the prior quarter and higher versus the same quarter last year. Gross margin weakened significantly from both the preceding quarter and the year-ago quarter, driven by a substantially lower gross profit despite a reduction in cost of revenue.
- Gross profit decreased sharply compared to both the prior quarter and the year-ago period, outpacing the decline in cost of revenue and causing gross margin to contract.
- Revenue was steady sequentially and higher year-over-year. Gross margin was lower than the previous quarter and lower than the same quarter a year earlier.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
7.1%
Gross profit
$3.0B
Revenue
$42.5B
Cost of revenue
$641.0M
Quarter-over-quarter change
-5.3 pts
Year-over-year change
-5.5 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 |
|---|---|---|---|---|
| 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% |
| Jun 30, 2025 | $42.5B | $3.0B | $641.0M | 7.1% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 31, 2025
-5.3 pts
Year-over-year change
Jun 30, 2024
-5.5 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
Gross profit decreased sharply compared to both the prior quarter and the year-ago period, outpacing the decline in cost of revenue and causing gross margin to contract.
Revenue was steady sequentially and higher year-over-year. Gross margin was lower than the previous quarter and lower than the same quarter a year earlier.
Monitor the trajectory of gross profit relative to revenue in future periods for signs of sustained margin pressure.