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 NextEra Energy (NEE) revenue becomes net income?

For TTM through Q1 2026, NextEra Energy turned $28.2B of revenue into $8.18B of net income — a net margin of 29%. The waterfall shows where the rest goes: cost of revenue, operating expenses, non-operating items, and taxes.

What are NextEra Energy (NEE) gross, operating, and net margins?

For TTM through Q1 2026, NextEra Energy reported a gross margin of 67.3%, an operating margin of 29.2%, and a net margin of 29%. Each subtotal in the waterfall corresponds to one of these margins.

Why does NextEra Energy (NEE) 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.

NextEra Energy (NEE) Income Statement Waterfall

Revenue

$28.2B

Gross Margin

+67.3%

Operating Margin

+29.2%

Net Margin

+29.0%

Income statement waterfall for NextEra Energy (NEE) — TTM through Q1 2026

Net income: $8.18B

Margin breakdown for NextEra Energy (NEE) — TTM through Q1 2026

Line item	Amount	Running total
Revenue	$28.2B	$28.2B
Cost of Revenue	-$9.21B	$19B
Gross Profit	$19B	$19B
Operating Expenses	-$10.7B	$8.23B
Operating Income	$8.23B	$8.23B
Other Income / Expense	-$2.45B	$5.79B
Pre-tax Income	$5.79B	$5.79B
Tax Benefit	$770M	$6.56B
Other Items	$1.63B	$8.18B
Net Income	$8.18B	$8.18B

Revenue$28.2B
Cost of Revenue-$9.21B
Gross Profit$19B
Operating Expenses-$10.7B
Operating Income$8.23B
Other Income / Expense-$2.45B
Pre-tax Income$5.79B
Tax Benefit$770M
Other Items$1.63B
Net Income$8.18B

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