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 Fortive (FTV) revenue becomes net income?

For TTM through Q2 2026, Fortive turned $4.74B of revenue into $544M 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 Fortive (FTV) gross, operating, and net margins?

For TTM through Q2 2026, Fortive reported a gross margin of 61.8%, an operating margin of 17.7%, and a net margin of 11.5%. Each subtotal in the waterfall corresponds to one of these margins.

Why does Fortive (FTV) 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.

Fortive (FTV) Income Statement Waterfall

Revenue

$4.74B

Gross Margin

+61.8%

Operating Margin

+17.7%

Net Margin

+11.5%

Income statement waterfall for Fortive (FTV) — TTM through Q2 2026

Net income: $544M

Margin breakdown for Fortive (FTV) — TTM through Q2 2026

Line item	Amount	Running total
Revenue	$4.74B	$4.74B
Cost of Revenue	-$1.81B	$2.93B
Gross Profit	$2.93B	$2.93B
Operating Expenses	-$2.09B	$840M
Operating Income	$840M	$840M
Other Income / Expense	-$156M	$685M
Pre-tax Income	$685M	$685M
Income Tax	-$73M	$612M
Other Items	-$67.8M	$544M
Net Income	$544M	$544M

Revenue$4.74B
Cost of Revenue-$1.81B
Gross Profit$2.93B
Operating Expenses-$2.09B
Operating Income$840M
Other Income / Expense-$156M
Pre-tax Income$685M
Income Tax-$73M
Other Items-$67.8M
Net Income$544M

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