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 AXIS Capital Holdings (AXS) revenue becomes net income?

For TTM through Q1 2026, AXIS Capital Holdings turned $6.61B of revenue into $1.07B of net income — a net margin of 16.2%. The waterfall shows where the rest goes: cost of revenue, operating expenses, non-operating items, and taxes.

What are AXIS Capital Holdings (AXS) gross, operating, and net margins?

For TTM through Q1 2026, AXIS Capital Holdings reported a gross margin of 40.5%, an operating margin of 19.6%, and a net margin of 16.2%. Each subtotal in the waterfall corresponds to one of these margins.

Why does AXIS Capital Holdings (AXS) 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.

AXIS Capital Holdings (AXS) Income Statement Waterfall

Revenue

$6.61B

Gross Margin

+40.5%

Operating Margin

+19.6%

Net Margin

+16.2%

Income statement waterfall for AXIS Capital Holdings (AXS) — TTM through Q1 2026

Net income: $1.07B

Margin breakdown for AXIS Capital Holdings (AXS) — TTM through Q1 2026

Line item	Amount	Running total
Revenue	$6.61B	$6.61B
Cost of Revenue	-$3.93B	$2.68B
Gross Profit	$2.68B	$2.68B
Operating Expenses	-$1.39B	$1.29B
Operating Income	$1.29B	$1.29B
Other Income / Expense	$1.38M	$1.3B
Pre-tax Income	$1.3B	$1.3B
Income Tax	-$228M	$1.07B
Net Income	$1.07B	$1.07B

Revenue$6.61B
Cost of Revenue-$3.93B
Gross Profit$2.68B
Operating Expenses-$1.39B
Operating Income$1.29B
Other Income / Expense$1.38M
Pre-tax Income$1.3B
Income Tax-$228M
Net Income$1.07B

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