What is an income statement waterfall?

An income statement waterfall is a bar chart that walks from total revenue down to net income, with each step showing how much a cost or tax line removes (or adds). Subtotals — gross profit, operating income, pre-tax income — are anchored to zero so the cascade reconciles exactly to the bottom line.

How much of ABM Industries (ABM) revenue becomes net income?

For TTM through Q2 2026, ABM Industries turned $9.05B of revenue into $159M of net income — a net margin of 1.8%. The waterfall shows where the rest goes: cost of revenue, operating expenses, non-operating items, and taxes.

What are ABM Industries (ABM) gross, operating, and net margins?

For TTM through Q2 2026, ABM Industries reported a gross margin of 11.5%, an operating margin of 3.6%, and a net margin of 1.8%. Each subtotal in the waterfall corresponds to one of these margins.

Why does ABM Industries (ABM) have such a high (or low) gross margin?

Gross margin (gross profit ÷ revenue) reflects how much of each revenue dollar remains after direct production costs. Capital-light software and platform businesses often show gross margins above 60–80% because their cost of revenue is mainly hosting and support. Hardware, retail, and commodity businesses show lower gross margins because raw materials and manufacturing costs are significant. The waterfall makes this visible at a glance — the size of the "Cost of Revenue" bar relative to Revenue is the gross margin complement.

What is the difference between gross, operating, and net margin?

Gross margin = (Revenue − Cost of Revenue) ÷ Revenue. It measures production efficiency. Operating margin = Operating Income ÷ Revenue. It adds operating expenses (R&D, S&M, G&A) and measures the profitability of core operations. Net margin = Net Income ÷ Revenue. It also includes interest, other income/expense, and taxes, and represents the shareholder take after everything.

ABM Industries (ABM) Income Statement Waterfall

Revenue

$9.05B

Gross Margin

+11.5%

Operating Margin

+3.6%

Net Margin

+1.8%

Income statement waterfall for ABM Industries (ABM) — TTM through Q2 2026

Net income: $159M

Margin breakdown for ABM Industries (ABM) — TTM through Q2 2026

Line item	Amount	Running total
Revenue	$9.05B	$9.05B
Cost of Revenue	-$8.01B	$1.04B
Gross Profit	$1.04B	$1.04B
Operating Expenses	-$714M	$330M
Operating Income	$330M	$330M
Other Income / Expense	-$114M	$217M
Pre-tax Income	$217M	$217M
Income Tax	-$58.1M	$158M
Net Income	$159M	$159M

Revenue$9.05B
Cost of Revenue-$8.01B
Gross Profit$1.04B
Operating Expenses-$714M
Operating Income$330M
Other Income / Expense-$114M
Pre-tax Income$217M
Income Tax-$58.1M
Net Income$159M

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