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 CSX (CSX) revenue becomes net income?

For TTM through Q2 2026, CSX turned $14.5B of revenue into $3.22B of net income — a net margin of 22.2%. The waterfall shows where the rest goes: cost of revenue, operating expenses, non-operating items, and taxes.

What are CSX (CSX) gross, operating, and net margins?

For TTM through Q2 2026, CSX reported a gross margin of 27.8%, an operating margin of 34.2%, and a net margin of 22.2%. Each subtotal in the waterfall corresponds to one of these margins.

Why does CSX (CSX) 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.

CSX (CSX) Income Statement Waterfall

Revenue

$14.5B

Gross Margin

+27.8%

Operating Margin

+34.2%

Net Margin

+22.2%

Income statement waterfall for CSX (CSX) — TTM through Q2 2026

Net income: $3.22B

Margin breakdown for CSX (CSX) — TTM through Q2 2026

Line item	Amount	Running total
Revenue	$14.5B	$14.5B
Cost of Revenue	-$6.55B	$4.03B
Gross Profit	$4.03B	$4.03B
Operating Expenses	$927M	$4.96B
Operating Income	$4.96B	$4.96B
Other Income / Expense	-$755M	$4.2B
Pre-tax Income	$4.2B	$4.2B
Income Tax	-$342M	$3.86B
Other Items	-$636M	$3.22B
Net Income	$3.22B	$3.22B

Revenue$14.5B
Cost of Revenue-$6.55B
Gross Profit$4.03B
Operating Expenses$927M
Operating Income$4.96B
Other Income / Expense-$755M
Pre-tax Income$4.2B
Income Tax-$342M
Other Items-$636M
Net Income$3.22B

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