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 Digital Realty Trust (DLR) revenue becomes net income?

For TTM through Q1 2026, Digital Realty Trust turned $6.42B of revenue into $1.38B of net income — a net margin of 21.5%. The waterfall shows where the rest goes: cost of revenue, operating expenses, non-operating items, and taxes.

What are Digital Realty Trust (DLR) gross, operating, and net margins?

For TTM through Q1 2026, Digital Realty Trust reported a gross margin of 25.1%, an operating margin of 14.6%, and a net margin of 21.5%. Each subtotal in the waterfall corresponds to one of these margins.

Why does Digital Realty Trust (DLR) 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.

Digital Realty Trust (DLR) Income Statement Waterfall

Revenue

$6.42B

Gross Margin

+25.1%

Operating Margin

+14.6%

Net Margin

+21.5%

Income statement waterfall for Digital Realty Trust (DLR) — TTM through Q1 2026

Net income: $1.38B

Margin breakdown for Digital Realty Trust (DLR) — TTM through Q1 2026

Line item	Amount	Running total
Revenue	$6.42B	$6.42B
Cost of Revenue	-$4.81B	$1.61B
Gross Profit	$1.61B	$1.61B
Operating Expenses	-$675M	$938M
Operating Income	$938M	$938M
Other Income / Expense	$552M	$1.49B
Pre-tax Income	$1.49B	$1.49B
Income Tax	-$30.9M	$1.46B
Other Items	-$81.4M	$1.38B
Net Income	$1.38B	$1.38B

Revenue$6.42B
Cost of Revenue-$4.81B
Gross Profit$1.61B
Operating Expenses-$675M
Operating Income$938M
Other Income / Expense$552M
Pre-tax Income$1.49B
Income Tax-$30.9M
Other Items-$81.4M
Net Income$1.38B

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Operating Margin14.6%

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