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 Akamai Technologies (AKAM) revenue becomes net income?

For TTM through Q1 2026, Akamai Technologies turned $4.27B of revenue into $435M of net income — a net margin of 10.2%. The waterfall shows where the rest goes: cost of revenue, operating expenses, non-operating items, and taxes.

What are Akamai Technologies (AKAM) gross, operating, and net margins?

For TTM through Q1 2026, Akamai Technologies reported a gross margin of 57.2%, an operating margin of 13.7%, and a net margin of 10.2%. Each subtotal in the waterfall corresponds to one of these margins.

Why does Akamai Technologies (AKAM) 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.

Akamai Technologies (AKAM) Income Statement Waterfall

Revenue

$4.27B

Gross Margin

+57.2%

Operating Margin

+13.7%

Net Margin

+10.2%

Income statement waterfall for Akamai Technologies (AKAM) — TTM through Q1 2026

Net income: $435M

Margin breakdown for Akamai Technologies (AKAM) — TTM through Q1 2026

Line item	Amount	Running total
Revenue	$4.27B	$4.27B
Cost of Revenue	-$1.82B	$2.44B
Gross Profit	$2.44B	$2.44B
Operating Expenses	-$1.86B	$583M
Operating Income	$583M	$583M
Other Income / Expense	-$32.3M	$551M
Pre-tax Income	$551M	$551M
Income Tax	-$116M	$435M
Net Income	$435M	$435M

Revenue$4.27B
Cost of Revenue-$1.82B
Gross Profit$2.44B
Operating Expenses-$1.86B
Operating Income$583M
Other Income / Expense-$32.3M
Pre-tax Income$551M
Income Tax-$116M
Net Income$435M

Want to see what changed vs last year?Profit Bridge

Frequently asked questions

Data & methodology

Akamai Technologies (AKAM) 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

AKAM Overview

Counters

Income Statement

Cash Flow

Capital Return

Buybacks7.83% TTM

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

Forecast & Valuation