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 Alnylam Pharmaceuticals (ALNY) revenue becomes net income?

For TTM through Q1 2026, Alnylam Pharmaceuticals turned $4.29B of revenue into $577M of net income — a net margin of 13.5%. The waterfall shows where the rest goes: cost of revenue, operating expenses, non-operating items, and taxes.

What are Alnylam Pharmaceuticals (ALNY) gross, operating, and net margins?

For TTM through Q1 2026, Alnylam Pharmaceuticals reported a gross margin of 80.9%, an operating margin of 17.5%, and a net margin of 13.5%. Each subtotal in the waterfall corresponds to one of these margins.

Why does Alnylam Pharmaceuticals (ALNY) 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.

Alnylam Pharmaceuticals (ALNY) Income Statement Waterfall

Revenue

$4.29B

Gross Margin

+80.9%

Operating Margin

+17.5%

Net Margin

+13.5%

Income statement waterfall for Alnylam Pharmaceuticals (ALNY) — TTM through Q1 2026

Net income: $577M

Margin breakdown for Alnylam Pharmaceuticals (ALNY) — TTM through Q1 2026

Line item	Amount	Running total
Revenue	$4.29B	$4.29B
Cost of Revenue	-$819M	$3.47B
Gross Profit	$3.47B	$3.47B
Operating Expenses	-$2.72B	$752M
Operating Income	$752M	$752M
Other Income / Expense	-$166M	$586M
Pre-tax Income	$586M	$586M
Tax Benefit	$22.1M	$609M
Other Items	-$31.3M	$577M
Net Income	$577M	$577M

Revenue$4.29B
Cost of Revenue-$819M
Gross Profit$3.47B
Operating Expenses-$2.72B
Operating Income$752M
Other Income / Expense-$166M
Pre-tax Income$586M
Tax Benefit$22.1M
Other Items-$31.3M
Net Income$577M

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