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 Novo Nordisk (NVO) revenue becomes net income?

For TTM through Q1 2026, Novo Nordisk turned 328B DKK of revenue into 122B DKK of net income — a net margin of 37.2%. The waterfall shows where the rest goes: cost of revenue, operating expenses, non-operating items, and taxes.

What are Novo Nordisk (NVO) gross, operating, and net margins?

For TTM through Q1 2026, Novo Nordisk reported a gross margin of 81.8%, an operating margin of 45.3%, and a net margin of 37.2%. Each subtotal in the waterfall corresponds to one of these margins.

Why does Novo Nordisk (NVO) 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.

Novo Nordisk (NVO) Income Statement Waterfall

Revenue

328B DKK

Gross Margin

+81.8%

Operating Margin

+45.3%

Net Margin

+37.2%

Income statement waterfall for Novo Nordisk (NVO) — TTM through Q1 2026

Net income: 122B DKK

Margin breakdown for Novo Nordisk (NVO) — TTM through Q1 2026

Line item	Amount	Running total
Revenue	328B DKK	328B DKK
Cost of Revenue	-59.5B DKK	268B DKK
Gross Profit	268B DKK	268B DKK
Operating Expenses	-120B DKK	148B DKK
Operating Income	148B DKK	148B DKK
Other Income / Expense	7.19B DKK	156B DKK
Pre-tax Income	156B DKK	156B DKK
Income Tax	-33.7B DKK	122B DKK
Net Income	122B DKK	122B DKK

Revenue328B DKK
Cost of Revenue-59.5B DKK
Gross Profit268B DKK
Operating Expenses-120B DKK
Operating Income148B DKK
Other Income / Expense7.19B DKK
Pre-tax Income156B DKK
Income Tax-33.7B DKK
Net Income122B DKK

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