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 Autodesk (ADSK) revenue becomes net income?

For TTM through Q2 2026, Autodesk turned $7.51B of revenue into $1.46B of net income — a net margin of 19.5%. The waterfall shows where the rest goes: cost of revenue, operating expenses, non-operating items, and taxes.

What are Autodesk (ADSK) gross, operating, and net margins?

For TTM through Q2 2026, Autodesk reported a gross margin of 91.1%, an operating margin of 26.6%, and a net margin of 19.5%. Each subtotal in the waterfall corresponds to one of these margins.

Why does Autodesk (ADSK) 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.

Autodesk (ADSK) Income Statement Waterfall

Revenue

$7.51B

Gross Margin

+91.1%

Operating Margin

+26.6%

Net Margin

+19.5%

Income statement waterfall for Autodesk (ADSK) — TTM through Q2 2026

Net income: $1.46B

Margin breakdown for Autodesk (ADSK) — TTM through Q2 2026

Line item	Amount	Running total
Revenue	$7.51B	$7.51B
Cost of Revenue	-$665M	$6.84B
Gross Profit	$6.84B	$6.84B
Operating Expenses	-$4.85B	$2B
Operating Income	$2B	$2B
Other Income / Expense	-$29M	$1.97B
Pre-tax Income	$1.97B	$1.97B
Income Tax	-$505M	$1.46B
Net Income	$1.46B	$1.46B

Revenue$7.51B
Cost of Revenue-$665M
Gross Profit$6.84B
Operating Expenses-$4.85B
Operating Income$2B
Other Income / Expense-$29M
Pre-tax Income$1.97B
Income Tax-$505M
Net Income$1.46B

Want to see what changed vs last year?Profit Bridge

Frequently asked questions

Data & methodology

Autodesk (ADSK) Key Financials

Charts, filings, and peer comparison for every metric

Explore more

Deep-dives across the income statement, cash flow, capital return, and valuation

Overview

ADSK Overview

Counters

Income Statement

Cash Flow

Capital Return

How this company returns cash to shareholders — buybacks, dividends, and stock splits.

Forecast & Valuation