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 Northern Trust (NTRS) revenue becomes net income?

For TTM through Q1 2026, Northern Trust turned $14.6B of revenue into $1.87B of net income — a net margin of 12.8%. The waterfall shows where the rest goes: cost of revenue, operating expenses, non-operating items, and taxes.

What are Northern Trust (NTRS) gross, operating, and net margins?

For TTM through Q1 2026, Northern Trust reported a gross margin of 57.3%, an operating margin of 17.2%, and a net margin of 12.8%. Each subtotal in the waterfall corresponds to one of these margins.

Why does Northern Trust (NTRS) 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.

Northern Trust (NTRS) Income Statement Waterfall

Revenue

$14.6B

Gross Margin

+57.3%

Operating Margin

+17.2%

Net Margin

+12.8%

Income statement waterfall for Northern Trust (NTRS) — TTM through Q1 2026

Net income: $1.87B

Margin breakdown for Northern Trust (NTRS) — TTM through Q1 2026

Line item	Amount	Running total
Revenue	$14.6B	$14.6B
Cost of Revenue	-$6.22B	$8.36B
Gross Profit	$8.36B	$8.36B
Operating Expenses	-$5.84B	$2.51B
Operating Income	$2.51B	$2.51B
Other Income / Expense	$8M	$2.52B
Pre-tax Income	$2.52B	$2.52B
Income Tax	-$648M	$1.87B
Net Income	$1.87B	$1.87B

Revenue$14.6B
Cost of Revenue-$6.22B
Gross Profit$8.36B
Operating Expenses-$5.84B
Operating Income$2.51B
Other Income / Expense$8M
Pre-tax Income$2.52B
Income Tax-$648M
Net Income$1.87B

Want to see what changed vs last year?Profit Bridge

Frequently asked questions

Data & methodology

Northern Trust (NTRS) Key Financials

Charts, filings, and peer comparison for every metric

Income Statement

Balance Sheet

Profitability

Cash Flow

Capital Return

Forecast & Valuation

Operations

Employees23.8K

Explore more

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

Overview

NTRS Overview

Counters