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 Gen Digital (GEN) revenue becomes net income?

For TTM through Q2 2026, Gen Digital turned $5B of revenue into $973M of net income — a net margin of 19.5%. The waterfall shows where the rest goes: cost of revenue, operating expenses, non-operating items, and taxes.

What are Gen Digital (GEN) gross, operating, and net margins?

For TTM through Q2 2026, Gen Digital reported a gross margin of 76.3%, an operating margin of 42.8%, and a net margin of 19.5%. Each subtotal in the waterfall corresponds to one of these margins.

Why does Gen Digital (GEN) 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.

Gen Digital (GEN) Income Statement Waterfall

Revenue

$5B

Gross Margin

+76.3%

Operating Margin

+42.8%

Net Margin

+19.5%

Income statement waterfall for Gen Digital (GEN) — TTM through Q2 2026

Net income: $973M

Margin breakdown for Gen Digital (GEN) — TTM through Q2 2026

Line item	Amount	Running total
Revenue	$5B	$5B
Cost of Revenue	-$1.19B	$3.81B
Gross Profit	$3.81B	$3.81B
Operating Expenses	-$1.67B	$2.14B
Operating Income	$2.14B	$2.14B
Other Income / Expense	-$630M	$1.51B
Pre-tax Income	$1.51B	$1.51B
Income Tax	-$538M	$973M
Net Income	$973M	$973M

Revenue$5B
Cost of Revenue-$1.19B
Gross Profit$3.81B
Operating Expenses-$1.67B
Operating Income$2.14B
Other Income / Expense-$630M
Pre-tax Income$1.51B
Income Tax-$538M
Net Income$973M

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