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 Aon (AON) revenue becomes net income?

For TTM through Q1 2026, Aon turned $17.5B of revenue into $3.94B of net income — a net margin of 22.5%. The waterfall shows where the rest goes: cost of revenue, operating expenses, non-operating items, and taxes.

What are Aon (AON) gross, operating, and net margins?

For TTM through Q1 2026, Aon reported a gross margin of 66%, an operating margin of 27.6%, and a net margin of 22.5%. Each subtotal in the waterfall corresponds to one of these margins.

Why does Aon (AON) 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.

Aon (AON) Income Statement Waterfall

Revenue

$17.5B

Gross Margin

+66.0%

Operating Margin

+27.6%

Net Margin

+22.5%

Income statement waterfall for Aon (AON) — TTM through Q1 2026

Net income: $3.94B

Margin breakdown for Aon (AON) — TTM through Q1 2026

Line item	Amount	Running total
Revenue	$17.5B	$17.5B
Cost of Revenue	-$5.95B	$11.5B
Gross Profit	$11.5B	$11.5B
Operating Expenses	-$6.72B	$4.82B
Operating Income	$4.82B	$4.82B
Other Income / Expense	$243M	$5.06B
Pre-tax Income	$5.06B	$5.06B
Income Tax	-$1.06B	$4.01B
Other Items	-$65M	$3.94B
Net Income	$3.94B	$3.94B

Revenue$17.5B
Cost of Revenue-$5.95B
Gross Profit$11.5B
Operating Expenses-$6.72B
Operating Income$4.82B
Other Income / Expense$243M
Pre-tax Income$5.06B
Income Tax-$1.06B
Other Items-$65M
Net Income$3.94B

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