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 Donaldson Company (DCI) revenue becomes net income?

For TTM through Q2 2026, Donaldson Company turned $3.81B of revenue into $439M of net income — a net margin of 11.5%. The waterfall shows where the rest goes: cost of revenue, operating expenses, non-operating items, and taxes.

What are Donaldson Company (DCI) gross, operating, and net margins?

For TTM through Q2 2026, Donaldson Company reported a gross margin of 34.2%, an operating margin of 14.9%, and a net margin of 11.5%. Each subtotal in the waterfall corresponds to one of these margins.

Why does Donaldson Company (DCI) 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.

Donaldson Company (DCI) Income Statement Waterfall

Revenue

$3.81B

Gross Margin

+34.2%

Operating Margin

+14.9%

Net Margin

+11.5%

Income statement waterfall for Donaldson Company (DCI) — TTM through Q2 2026

Net income: $439M

Margin breakdown for Donaldson Company (DCI) — TTM through Q2 2026

Line item	Amount	Running total
Revenue	$3.81B	$3.81B
Cost of Revenue	-$2.51B	$1.3B
Gross Profit	$1.3B	$1.3B
Operating Expenses	-$732M	$569M
Operating Income	$569M	$569M
Other Income / Expense	-$500K	$569M
Pre-tax Income	$569M	$569M
Income Tax	-$130M	$439M
Net Income	$439M	$439M

Revenue$3.81B
Cost of Revenue-$2.51B
Gross Profit$1.3B
Operating Expenses-$732M
Operating Income$569M
Other Income / Expense-$500K
Pre-tax Income$569M
Income Tax-$130M
Net Income$439M

Want to see what changed vs last year?Profit Bridge

Frequently asked questions

Data & methodology

Donaldson Company (DCI) Key Financials

Charts, filings, and peer comparison for every metric

Explore more

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

Overview

DCI Overview

Counters

Income Statement

Cash Flow

Capital Return

How this company returns cash to shareholders — buybacks, dividends, and stock splits.

Forecast & Valuation