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 Q2 2026, Citizens Financial Group turned $11.5B of revenue into $2.13B of net income — a net margin of 18.5%. 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 Q2 2026, Citizens Financial Group reported a gross margin of 72.4%, an operating margin of 23.6%, and a net margin of 18.5%. 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

$11.5B

Gross Margin

+72.4%

Operating Margin

+23.6%

Net Margin

+18.5%

Income statement waterfall for Citizens Financial Group (CFG) — TTM through Q2 2026

Net income: $2.13B

Margin breakdown for Citizens Financial Group (CFG) — TTM through Q2 2026

Line item	Amount	Running total
Revenue	$11.5B	$11.5B
Cost of Revenue	-$3.17B	$8.3B
Gross Profit	$8.3B	$8.3B
Operating Expenses	-$5.59B	$2.71B
Operating Income	$2.71B	$2.71B
Pre-tax Income	$2.71B	$2.71B
Income Tax	-$585M	$2.13B
Net Income	$2.13B	$2.13B

Revenue$11.5B
Cost of Revenue-$3.17B
Gross Profit$8.3B
Operating Expenses-$5.59B
Operating Income$2.71B
Pre-tax Income$2.71B
Income Tax-$585M
Net Income$2.13B

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