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 JPMorgan Chase (JPM) revenue becomes net income?

For TTM through Q2 2026, JPMorgan Chase turned $298B of revenue into $65.1B of net income — a net margin of 21.9%. The waterfall shows where the rest goes: cost of revenue, operating expenses, non-operating items, and taxes.

What are JPMorgan Chase (JPM) gross, operating, and net margins?

For TTM through Q2 2026, JPMorgan Chase reported a gross margin of 62.6%, an operating margin of 28.2%, and a net margin of 21.9%. Each subtotal in the waterfall corresponds to one of these margins.

Why does JPMorgan Chase (JPM) 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.

JPMorgan Chase (JPM) Income Statement Waterfall

Revenue

$298B

Gross Margin

+62.6%

Operating Margin

+28.2%

Net Margin

+21.9%

Income statement waterfall for JPMorgan Chase (JPM) — TTM through Q2 2026

Net income: $65.1B

Margin breakdown for JPMorgan Chase (JPM) — TTM through Q2 2026

Line item	Amount	Running total
Revenue	$298B	$298B
Cost of Revenue	-$111B	$186B
Gross Profit	$186B	$186B
Operating Expenses	-$102B	$83.9B
Operating Income	$83.9B	$83.9B
Pre-tax Income	$83.9B	$83.9B
Income Tax	-$18.8B	$65.1B
Net Income	$65.1B	$65.1B

Revenue$298B
Cost of Revenue-$111B
Gross Profit$186B
Operating Expenses-$102B
Operating Income$83.9B
Pre-tax Income$83.9B
Income Tax-$18.8B
Net Income$65.1B

Want to see what changed vs last year?Profit Bridge

Frequently asked questions

Data & methodology

JPMorgan Chase (JPM) Key Financials

Charts, filings, and peer comparison for every metric

Income Statement

Balance Sheet

Profitability

Cash Flow

Capital Return

Forecast & Valuation

Operations

Employees318.5K

Explore more

Deep-dives across the income statement, cash flow, capital return, and valuation

Overview

JPM Overview

Counters