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 CMS Energy (CMS) revenue becomes net income?

For TTM through Q1 2026, CMS Energy turned $8.82B of revenue into $1.11B of net income — a net margin of 12.5%. The waterfall shows where the rest goes: cost of revenue, operating expenses, non-operating items, and taxes.

What are CMS Energy (CMS) gross, operating, and net margins?

For TTM through Q1 2026, CMS Energy reported a gross margin of 64.6%, an operating margin of 19.5%, and a net margin of 12.5%. Each subtotal in the waterfall corresponds to one of these margins.

Why does CMS Energy (CMS) 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.

CMS Energy (CMS) Income Statement Waterfall

Revenue

$8.82B

Gross Margin

+64.6%

Operating Margin

+19.5%

Net Margin

+12.5%

Income statement waterfall for CMS Energy (CMS) — TTM through Q1 2026

Net income: $1.11B

Margin breakdown for CMS Energy (CMS) — TTM through Q1 2026

Line item	Amount	Running total
Revenue	$8.82B	$8.82B
Cost of Revenue	-$3.12B	$5.7B
Gross Profit	$5.7B	$5.7B
Operating Expenses	-$3.98B	$1.72B
Operating Income	$1.72B	$1.72B
Other Income / Expense	-$471M	$1.25B
Pre-tax Income	$1.25B	$1.25B
Income Tax	-$268M	$984M
Other Items	$123M	$1.11B
Net Income	$1.11B	$1.11B

Revenue$8.82B
Cost of Revenue-$3.12B
Gross Profit$5.7B
Operating Expenses-$3.98B
Operating Income$1.72B
Other Income / Expense-$471M
Pre-tax Income$1.25B
Income Tax-$268M
Other Items$123M
Net Income$1.11B

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