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 Citizens Financial Group (CFG) revenue becomes net income?

For TTM through Q1 2026, Citizens Financial Group turned $11.28B of revenue into $1.98B of net income — a net margin of 17.5%. The waterfall shows where the rest goes: cost of revenue, operating expenses, non-operating items, and taxes.

What are Citizens Financial Group (CFG) gross, operating, and net margins?

For TTM through Q1 2026, Citizens Financial Group reported a gross margin of 71.1%, an operating margin of 22.3%, and a net margin of 17.5%. Each subtotal in the waterfall corresponds to one of these margins.

Why does Citizens Financial Group (CFG) 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.

Citizens Financial Group (CFG) Income Statement Waterfall

Revenue

$11.28B

Gross Margin

+71.1%

Operating Margin

+22.3%

Net Margin

+17.5%

Income statement waterfall for Citizens Financial Group (CFG) — TTM through Q1 2026

Net income: $1.98B

Margin breakdown for Citizens Financial Group (CFG) — TTM through Q1 2026

Line item	Amount	Running total
Revenue	$11.28B	$11.28B
Cost of Revenue	−$3.26B	$8.02B
Gross Profit	$8.02B	$8.02B
Operating Expenses	−$5.51B	$2.51B
Operating Income	$2.51B	$2.51B
Pre-tax Income	$2.51B	$2.51B
Income Tax	−$535.00M	$1.98B
Net Income	$1.98B	$1.98B

Revenue$11.28B
Cost of Revenue−$3.26B
Gross Profit$8.02B
Operating Expenses−$5.51B
Operating Income$2.51B
Pre-tax Income$2.51B
Income Tax−$535.00M
Net Income$1.98B

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Income statement waterfall for Citizens Financial Group (CFG) — TTM through Q1 2026

Margin breakdown for Citizens Financial Group (CFG) — TTM through Q1 2026

Frequently asked questions

+What is an income statement waterfall?

+How much of Citizens Financial Group (CFG) revenue becomes net income?

+What are Citizens Financial Group (CFG) gross, operating, and net margins?

+Why does Citizens Financial Group (CFG) 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?

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