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 PNC Financial Services Group (PNC) revenue becomes net income?

For TTM through Q2 2026, PNC Financial Services Group turned $30.6B of revenue into $7.63B of net income — a net margin of 25%. The waterfall shows where the rest goes: cost of revenue, operating expenses, non-operating items, and taxes.

What are PNC Financial Services Group (PNC) gross, operating, and net margins?

For TTM through Q2 2026, PNC Financial Services Group reported a gross margin of 79.6%, an operating margin of 30.7%, and a net margin of 25%. Each subtotal in the waterfall corresponds to one of these margins.

Why does PNC Financial Services Group (PNC) 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.

PNC Financial Services Group (PNC) Income Statement Waterfall

Revenue

$30.6B

Gross Margin

+79.6%

Operating Margin

+30.7%

Net Margin

+25.0%

Income statement waterfall for PNC Financial Services Group (PNC) — TTM through Q2 2026

Net income: $7.63B

Margin breakdown for PNC Financial Services Group (PNC) — TTM through Q2 2026

Line item	Amount	Running total
Revenue	$30.6B	$30.6B
Cost of Revenue	-$6.24B	$24.3B
Gross Profit	$24.3B	$24.3B
Operating Expenses	-$14.9B	$9.39B
Operating Income	$9.39B	$9.39B
Pre-tax Income	$9.39B	$9.39B
Income Tax	-$1.71B	$7.68B
Net Income	$7.63B	$7.63B

Revenue$30.6B
Cost of Revenue-$6.24B
Gross Profit$24.3B
Operating Expenses-$14.9B
Operating Income$9.39B
Pre-tax Income$9.39B
Income Tax-$1.71B
Net Income$7.63B

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