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 Garmin (GRMN) revenue becomes net income?

For TTM through Q1 2026, Garmin turned $7.46B of revenue into $1.74B of net income — a net margin of 23.3%. The waterfall shows where the rest goes: cost of revenue, operating expenses, non-operating items, and taxes.

What are Garmin (GRMN) gross, operating, and net margins?

For TTM through Q1 2026, Garmin reported a gross margin of 59.1%, an operating margin of 26.5%, and a net margin of 23.3%. Each subtotal in the waterfall corresponds to one of these margins.

Why does Garmin (GRMN) 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.

Garmin (GRMN) Income Statement Waterfall

Revenue

$7.46B

Gross Margin

+59.1%

Operating Margin

+26.5%

Net Margin

+23.3%

Income statement waterfall for Garmin (GRMN) — TTM through Q1 2026

Net income: $1.74B

Margin breakdown for Garmin (GRMN) — TTM through Q1 2026

Line item	Amount	Running total
Revenue	$7.46B	$7.46B
Cost of Revenue	-$3.05B	$4.41B
Gross Profit	$4.41B	$4.41B
Operating Expenses	-$2.44B	$1.97B
Operating Income	$1.97B	$1.97B
Other Income / Expense	$123M	$2.1B
Pre-tax Income	$2.1B	$2.1B
Income Tax	-$362M	$1.74B
Net Income	$1.74B	$1.74B

Revenue$7.46B
Cost of Revenue-$3.05B
Gross Profit$4.41B
Operating Expenses-$2.44B
Operating Income$1.97B
Other Income / Expense$123M
Pre-tax Income$2.1B
Income Tax-$362M
Net Income$1.74B

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