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 Ingersoll Rand (IR) revenue becomes net income?

For TTM through Q1 2026, Ingersoll Rand turned $7.78B of revenue into $587M of net income — a net margin of 7.5%. The waterfall shows where the rest goes: cost of revenue, operating expenses, non-operating items, and taxes.

What are Ingersoll Rand (IR) gross, operating, and net margins?

For TTM through Q1 2026, Ingersoll Rand reported a gross margin of 38.2%, an operating margin of 18.1%, and a net margin of 7.5%. Each subtotal in the waterfall corresponds to one of these margins.

Why does Ingersoll Rand (IR) 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.

Ingersoll Rand (IR) Income Statement Waterfall

Revenue

$7.78B

Gross Margin

+38.2%

Operating Margin

+18.1%

Net Margin

+7.5%

Income statement waterfall for Ingersoll Rand (IR) — TTM through Q1 2026

Net income: $587M

Margin breakdown for Ingersoll Rand (IR) — TTM through Q1 2026

Line item	Amount	Running total
Revenue	$7.78B	$7.78B
Cost of Revenue	-$4.81B	$2.98B
Gross Profit	$2.98B	$2.98B
Operating Expenses	-$1.57B	$1.41B
Operating Income	$1.41B	$1.41B
Other Income / Expense	-$614M	$791M
Pre-tax Income	$791M	$791M
Income Tax	-$197M	$594M
Other Items	-$7.2M	$587M
Net Income	$587M	$587M

Revenue$7.78B
Cost of Revenue-$4.81B
Gross Profit$2.98B
Operating Expenses-$1.57B
Operating Income$1.41B
Other Income / Expense-$614M
Pre-tax Income$791M
Income Tax-$197M
Other Items-$7.2M
Net Income$587M

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