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 AGCO (AGCO) revenue becomes net income?

For TTM through Q1 2026, AGCO turned $10.4B of revenue into $771M of net income — a net margin of 7.4%. The waterfall shows where the rest goes: cost of revenue, operating expenses, non-operating items, and taxes.

What are AGCO (AGCO) gross, operating, and net margins?

For TTM through Q1 2026, AGCO reported a gross margin of 24.9%, an operating margin of 6.9%, and a net margin of 7.4%. Each subtotal in the waterfall corresponds to one of these margins.

Why does AGCO (AGCO) 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.

AGCO (AGCO) Income Statement Waterfall

Revenue

$10.4B

Gross Margin

+24.9%

Operating Margin

+6.9%

Net Margin

+7.4%

Income statement waterfall for AGCO (AGCO) — TTM through Q1 2026

Net income: $771M

Margin breakdown for AGCO (AGCO) — TTM through Q1 2026

Line item	Amount	Running total
Revenue	$10.4B	$10.4B
Cost of Revenue	-$7.79B	$2.58B
Gross Profit	$2.58B	$2.58B
Operating Expenses	-$1.87B	$711M
Operating Income	$711M	$711M
Other Income / Expense	-$41.5M	$670M
Pre-tax Income	$670M	$670M
Tax Benefit	$74.8M	$745M
Other Items	$26.3M	$771M
Net Income	$771M	$771M

Revenue$10.4B
Cost of Revenue-$7.79B
Gross Profit$2.58B
Operating Expenses-$1.87B
Operating Income$711M
Other Income / Expense-$41.5M
Pre-tax Income$670M
Tax Benefit$74.8M
Other Items$26.3M
Net Income$771M

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