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 Dell Technologies (DELL) revenue becomes net income?

For TTM through Q2 2026, Dell Technologies turned $134B of revenue into $8.41B of net income — a net margin of 6.3%. The waterfall shows where the rest goes: cost of revenue, operating expenses, non-operating items, and taxes.

What are Dell Technologies (DELL) gross, operating, and net margins?

For TTM through Q2 2026, Dell Technologies reported a gross margin of 19.1%, an operating margin of 8%, and a net margin of 6.3%. Each subtotal in the waterfall corresponds to one of these margins.

Why does Dell Technologies (DELL) 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.

Dell Technologies (DELL) Income Statement Waterfall

Revenue

$134B

Gross Margin

+19.1%

Operating Margin

+8.0%

Net Margin

+6.3%

Income statement waterfall for Dell Technologies (DELL) — TTM through Q2 2026

Net income: $8.41B

Margin breakdown for Dell Technologies (DELL) — TTM through Q2 2026

Line item	Amount	Running total
Revenue	$134B	$134B
Cost of Revenue	-$108B	$25.6B
Gross Profit	$25.6B	$25.6B
Operating Expenses	-$14.8B	$10.7B
Operating Income	$10.7B	$10.7B
Other Income / Expense	-$614M	$10.1B
Pre-tax Income	$10.1B	$10.1B
Income Tax	-$1.72B	$8.41B
Net Income	$8.41B	$8.41B

Revenue$134B
Cost of Revenue-$108B
Gross Profit$25.6B
Operating Expenses-$14.8B
Operating Income$10.7B
Other Income / Expense-$614M
Pre-tax Income$10.1B
Income Tax-$1.72B
Net Income$8.41B

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