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 Johnson Controls (JCI) revenue becomes net income?

For TTM through Q1 2026, Johnson Controls turned $24.4B of revenue into $3.53B of net income — a net margin of 14.5%. The waterfall shows where the rest goes: cost of revenue, operating expenses, non-operating items, and taxes.

What are Johnson Controls (JCI) gross, operating, and net margins?

For TTM through Q1 2026, Johnson Controls reported a gross margin of 36.6%, an operating margin of 13.6%, and a net margin of 14.5%. Each subtotal in the waterfall corresponds to one of these margins.

Why does Johnson Controls (JCI) 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.

Johnson Controls (JCI) Income Statement Waterfall

Revenue

$24.4B

Gross Margin

+36.6%

Operating Margin

+13.6%

Net Margin

+14.5%

Income statement waterfall for Johnson Controls (JCI) — TTM through Q1 2026

Net income: $3.53B

Margin breakdown for Johnson Controls (JCI) — TTM through Q1 2026

Line item	Amount	Running total
Revenue	$24.4B	$24.4B
Cost of Revenue	-$15.5B	$8.93B
Gross Profit	$8.93B	$8.93B
Operating Expenses	-$5.62B	$3.32B
Operating Income	$3.32B	$3.32B
Other Income / Expense	-$810M	$2.51B
Pre-tax Income	$2.51B	$2.51B
Income Tax	-$450M	$2.06B
Other Items	$1.48B	$3.53B
Net Income	$3.53B	$3.53B

Revenue$24.4B
Cost of Revenue-$15.5B
Gross Profit$8.93B
Operating Expenses-$5.62B
Operating Income$3.32B
Other Income / Expense-$810M
Pre-tax Income$2.51B
Income Tax-$450M
Other Items$1.48B
Net Income$3.53B

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