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 Carrier Global (CARR) revenue becomes net income?

For TTM through Q1 2026, Carrier Global turned $21.87B of revenue into $1.31B of net income — a net margin of 6%. The waterfall shows where the rest goes: cost of revenue, operating expenses, non-operating items, and taxes.

What are Carrier Global (CARR) gross, operating, and net margins?

For TTM through Q1 2026, Carrier Global reported a gross margin of 24.8%, an operating margin of 7.2%, and a net margin of 6%. Each subtotal in the waterfall corresponds to one of these margins.

Why does Carrier Global (CARR) 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.

Carrier Global (CARR) Income Statement Waterfall

Revenue

$21.87B

Gross Margin

+24.8%

Operating Margin

+7.2%

Net Margin

+6.0%

Income statement waterfall for Carrier Global (CARR) — TTM through Q1 2026

Net income: $1.31B

Margin breakdown for Carrier Global (CARR) — TTM through Q1 2026

Line item	Amount	Running total
Revenue	$21.87B	$21.87B
Cost of Revenue	−$16.45B	$5.42B
Gross Profit	$5.42B	$5.42B
Operating Expenses	−$3.84B	$1.58B
Operating Income	$1.58B	$1.58B
Other Income / Expense	−$164.00M	$1.42B
Pre-tax Income	$1.42B	$1.42B
Income Tax	−$33.00M	$1.39B
Other Items	−$77.00M	$1.31B
Net Income	$1.31B	$1.31B

Revenue$21.87B
Cost of Revenue−$16.45B
Gross Profit$5.42B
Operating Expenses−$3.84B
Operating Income$1.58B
Other Income / Expense−$164.00M
Pre-tax Income$1.42B
Income Tax−$33.00M
Other Items−$77.00M
Net Income$1.31B

Want to see what changed vs last year?Profit Bridge

Frequently asked questions

Data & methodology

Carrier Global (CARR) 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

CARR Overview

Counters

Income Statement

Cash Flow

Capital Return

Forecast & Valuation

Income statement waterfall for Carrier Global (CARR) — TTM through Q1 2026

Margin breakdown for Carrier Global (CARR) — TTM through Q1 2026

Frequently asked questions

+What is an income statement waterfall?

+How much of Carrier Global (CARR) revenue becomes net income?

+What are Carrier Global (CARR) gross, operating, and net margins?

+Why does Carrier Global (CARR) have such a high (or low) gross margin?

+What is the difference between gross, operating, and net margin?

Data & methodology

+What is this view?

+How to read this waterfall

+How is the data calculated?

+What is the USD toggle?

Carrier Global (CARR) Key Financials

Explore more