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 Q2 2026, CME Group turned $6.77B of revenue into $4.27B of net income — a net margin of 63.1%. 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 Q2 2026, CME Group reported a gross margin of 81.9%, an operating margin of 65.1%, and a net margin of 63.1%. 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

$6.77B

Gross Margin

+81.9%

Operating Margin

+65.1%

Net Margin

+63.1%

Income statement waterfall for CME Group (CME) — TTM through Q2 2026

Net income: $4.27B

Margin breakdown for CME Group (CME) — TTM through Q2 2026

Line item	Amount	Running total
Revenue	$6.77B	$6.77B
Cost of Revenue	-$1.23B	$5.55B
Gross Profit	$5.55B	$5.55B
Operating Expenses	-$1.14B	$4.41B
Operating Income	$4.41B	$4.41B
Other Income / Expense	$1.19B	$5.59B
Pre-tax Income	$5.59B	$5.59B
Income Tax	-$1.32B	$4.27B
Net Income	$4.27B	$4.27B

Revenue$6.77B
Cost of Revenue-$1.23B
Gross Profit$5.55B
Operating Expenses-$1.14B
Operating Income$4.41B
Other Income / Expense$1.19B
Pre-tax Income$5.59B
Income Tax-$1.32B
Net Income$4.27B

Want to see what changed vs last year?Profit Bridge

Frequently asked questions

Data & methodology

CME Group (CME) Key Financials

Charts, filings, and peer comparison for every metric

Income Statement

Balance Sheet

Profitability

Cash Flow

Capital Return

Forecast & Valuation

Operations

Employees3.9K

Explore more

Deep-dives across the income statement, cash flow, capital return, and valuation

Overview

CME Overview

Counters