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 CME Group (CME) revenue becomes net income?

For TTM through Q1 2026, CME Group turned $6.76B of revenue into $4.24B of net income — a net margin of 62.8%. The waterfall shows where the rest goes: cost of revenue, operating expenses, non-operating items, and taxes.

What are CME Group (CME) gross, operating, and net margins?

For TTM through Q1 2026, CME Group reported a gross margin of 86.3%, an operating margin of 65.6%, and a net margin of 62.8%. Each subtotal in the waterfall corresponds to one of these margins.

Why does CME Group (CME) 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.

CME Group (CME) Income Statement Waterfall

Revenue

$6.76B

Gross Margin

+86.3%

Operating Margin

+65.6%

Net Margin

+62.8%

Income statement waterfall for CME Group (CME) — TTM through Q1 2026

Net income: $4.24B

Margin breakdown for CME Group (CME) — TTM through Q1 2026

Line item	Amount	Running total
Revenue	$6.76B	$6.76B
Cost of Revenue	−$923.30M	$5.84B
Gross Profit	$5.84B	$5.84B
Operating Expenses	−$1.40B	$4.43B
Operating Income	$4.43B	$4.43B
Other Income / Expense	$1.17B	$5.60B
Pre-tax Income	$5.60B	$5.60B
Income Tax	−$1.34B	$4.26B
Net Income	$4.24B	$4.24B

Revenue$6.76B
Cost of Revenue−$923.30M
Gross Profit$5.84B
Operating Expenses−$1.40B
Operating Income$4.43B
Other Income / Expense$1.17B
Pre-tax Income$5.60B
Income Tax−$1.34B
Net Income$4.24B

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CME Group (CME) Key Financials

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Income statement waterfall for CME Group (CME) — TTM through Q1 2026

Margin breakdown for CME Group (CME) — TTM through Q1 2026

Frequently asked questions

+What is an income statement waterfall?

+How much of CME Group (CME) revenue becomes net income?

+What are CME Group (CME) gross, operating, and net margins?

+Why does CME Group (CME) 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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