Centene Corporation stock research
FY2025 Q4
Centene (CNC) Gross Margin — Quarter Ended Dec 31, 2025
Dollar amount of revenue was relatively stable compared with the quarterly period immediately before, while gross profit and margin decreased. Compared with the same period one year earlier, revenue was higher but gross profit and gross margin were sharply lower.
Gross margin takeaway
Quarter ended Dec 31, 2025 · FY2025 Q4
Dollar amount of revenue was relatively stable compared with the quarterly period immediately before, while gross profit and margin decreased. Compared with the same period one year earlier, revenue was higher but gross profit and gross margin were sharply lower.
- Gross profit declined while cost of revenue remained relatively stable quarter over quarter, indicating the drop in gross profit was primarily due to movements within revenue rather than a rise in direct costs. Year over year, the same pattern holds: revenue increased but cost of revenue was similar, leading to a gross profit decrease.
- Compared with the prior quarter, revenue was slightly lower and gross profit was lower, causing gross margin to weaken from a higher level to a lower level. Compared with the same period a year ago, revenue was higher but gross profit was lower, resulting in gross margin moving from a higher to a significantly lower level.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
5.7%
Gross profit
$2.6B
Revenue
$44.7B
Cost of revenue
$680.0M
Quarter-over-quarter change
-1.7 pts
Year-over-year change
-4.7 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 |
|---|---|---|---|---|
| Mar 31, 2025 | $42.5B | $5.3B | $698.0M | 12.4% |
| Jun 30, 2025 | $42.5B | $3.0B | $641.0M | 7.1% |
| Sep 30, 2025 | $44.9B | $3.3B | $651.0M | 7.5% |
| Dec 31, 2025 | $44.7B | $2.6B | $680.0M | 5.7% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2025
-1.7 pts
Year-over-year change
Dec 31, 2024
-4.7 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
Gross profit declined while cost of revenue remained relatively stable quarter over quarter, indicating the drop in gross profit was primarily due to movements within revenue rather than a rise in direct costs. Year over year, the same pattern holds: revenue increased but cost of revenue was similar, leading to a gross profit decrease.
Compared with the prior quarter, revenue was slightly lower and gross profit was lower, causing gross margin to weaken from a higher level to a lower level. Compared with the same period a year ago, revenue was higher but gross profit was lower, resulting in gross margin moving from a higher to a significantly lower level.
Monitor the trajectory of revenue relative to cost of revenue, as the current quarter's lower gross profit with a nearly stable cost base suggests sensitivity in revenue stream composition.