Centene Corporation stock research
FY2026 Q1
Centene (CNC) Gross Margin — Quarter Ended Mar 31, 2026
Revenue remained stable compared to the prior quarter but was higher than the same quarter a year ago. Gross profit increased substantially, while cost of revenue changed little, leading to a stronger gross margin.
Gross margin takeaway
Quarter ended Mar 31, 2026 · FY2026 Q1
Revenue remained stable compared to the prior quarter but was higher than the same quarter a year ago. Gross profit increased substantially, while cost of revenue changed little, leading to a stronger gross margin.
- The most significant observable driver of the margin improvement was the increase in gross profit, as cost of revenue remained relatively stable. This combination directly lifted the gross margin.
- Sequentially, gross margin strengthened considerably, driven by a large rise in gross profit while revenue was flat. Year over year, gross margin improved modestly as revenue and gross profit both grew, with cost of revenue rising only slightly.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
12.7%
Gross profit
$5.7B
Revenue
$44.7B
Cost of revenue
$702.0M
Quarter-over-quarter change
+6.9 pts
Year-over-year change
+0.2 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, 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% |
| Mar 31, 2026 | $44.7B | $5.7B | $702.0M | 12.7% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Dec 31, 2025
+6.9 pts
Year-over-year change
Mar 31, 2025
+0.2 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The most significant observable driver of the margin improvement was the increase in gross profit, as cost of revenue remained relatively stable. This combination directly lifted the gross margin.
Sequentially, gross margin strengthened considerably, driven by a large rise in gross profit while revenue was flat. Year over year, gross margin improved modestly as revenue and gross profit both grew, with cost of revenue rising only slightly.
Monitor whether cost of revenue remains stable as revenue grows, as any disproportionate increase could pressure gross margin.
Peer context
Latest available gross margins for related public companies.
| Company | Gross margin |
|---|---|
| Centene Corporation (CNC) | 12.7% |