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 ON Semiconductor (ON) revenue becomes net income?

For TTM through Q2 2026, ON Semiconductor turned $6.06B of revenue into $574M of net income — a net margin of 9.5%. The waterfall shows where the rest goes: cost of revenue, operating expenses, non-operating items, and taxes.

What are ON Semiconductor (ON) gross, operating, and net margins?

For TTM through Q2 2026, ON Semiconductor reported a gross margin of 37.2%, an operating margin of 10.8%, and a net margin of 9.5%. Each subtotal in the waterfall corresponds to one of these margins.

Why does ON Semiconductor (ON) 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.

ON Semiconductor (ON) Income Statement Waterfall

Revenue

$6.06B

Gross Margin

+37.2%

Operating Margin

+10.8%

Net Margin

+9.5%

Income statement waterfall for ON Semiconductor (ON) — TTM through Q2 2026

Net income: $574M

Margin breakdown for ON Semiconductor (ON) — TTM through Q2 2026

Line item	Amount	Running total
Revenue	$6.06B	$6.06B
Cost of Revenue	-$3.81B	$2.26B
Gross Profit	$2.26B	$2.26B
Operating Expenses	-$1.6B	$657M
Operating Income	$657M	$657M
Other Income / Expense	-$9.7M	$648M
Pre-tax Income	$648M	$648M
Income Tax	-$71.8M	$576M
Net Income	$574M	$574M

Revenue$6.06B
Cost of Revenue-$3.81B
Gross Profit$2.26B
Operating Expenses-$1.6B
Operating Income$657M
Other Income / Expense-$9.7M
Pre-tax Income$648M
Income Tax-$71.8M
Net Income$574M

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