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 Chevron (CVX) revenue becomes net income?

For TTM through Q1 2026, Chevron turned $185.89B of revenue into $11.01B of net income — a net margin of 5.9%. The waterfall shows where the rest goes: cost of revenue, operating expenses, non-operating items, and taxes.

What are Chevron (CVX) gross, operating, and net margins?

For TTM through Q1 2026, Chevron reported a gross margin of 25.4%, an operating margin of 8.4%, and a net margin of 5.9%. Each subtotal in the waterfall corresponds to one of these margins.

Why does Chevron (CVX) 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.

Chevron (CVX) Income Statement Waterfall

Revenue

$185.89B

Gross Margin

+25.4%

Operating Margin

+8.4%

Net Margin

+5.9%

Income statement waterfall for Chevron (CVX) — TTM through Q1 2026

Net income: $11.01B

Margin breakdown for Chevron (CVX) — TTM through Q1 2026

Line item	Amount	Running total
Revenue	$185.89B	$185.89B
Cost of Revenue	−$138.62B	$47.27B
Gross Profit	$47.27B	$47.27B
Operating Expenses	−$31.66B	$15.62B
Operating Income	$15.62B	$15.62B
Other Income / Expense	$2.49B	$18.11B
Pre-tax Income	$18.11B	$18.11B
Income Tax	−$6.84B	$11.27B
Other Items	−$257.00M	$11.01B
Net Income	$11.01B	$11.01B

Revenue$185.89B
Cost of Revenue−$138.62B
Gross Profit$47.27B
Operating Expenses−$31.66B
Operating Income$15.62B
Other Income / Expense$2.49B
Pre-tax Income$18.11B
Income Tax−$6.84B
Other Items−$257.00M
Net Income$11.01B

Want to see what changed vs last year?Profit Bridge

Frequently asked questions

Data & methodology

Chevron (CVX) Key Financials

Charts, filings, and peer comparison for every metric

Explore more

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

Income statement waterfall for Chevron (CVX) — TTM through Q1 2026

Margin breakdown for Chevron (CVX) — TTM through Q1 2026

Frequently asked questions

+What is an income statement waterfall?

+How much of Chevron (CVX) revenue becomes net income?

+What are Chevron (CVX) gross, operating, and net margins?

+Why does Chevron (CVX) 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?

Chevron (CVX) Key Financials

Explore more