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 Pentair (PNR) revenue becomes net income?

For TTM through Q1 2026, Pentair turned $4.2B of revenue into $671M of net income — a net margin of 16%. The waterfall shows where the rest goes: cost of revenue, operating expenses, non-operating items, and taxes.

What are Pentair (PNR) gross, operating, and net margins?

For TTM through Q1 2026, Pentair reported a gross margin of 40.9%, an operating margin of 20.6%, and a net margin of 16%. Each subtotal in the waterfall corresponds to one of these margins.

Why does Pentair (PNR) 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.

Pentair (PNR) Income Statement Waterfall

Revenue

$4.2B

Gross Margin

+40.9%

Operating Margin

+20.6%

Net Margin

+16.0%

Income statement waterfall for Pentair (PNR) — TTM through Q1 2026

Net income: $671M

Margin breakdown for Pentair (PNR) — TTM through Q1 2026

Line item	Amount	Running total
Revenue	$4.2B	$4.2B
Cost of Revenue	-$2.48B	$1.72B
Gross Profit	$1.72B	$1.72B
Operating Expenses	-$856M	$864M
Operating Income	$864M	$864M
Other Income / Expense	-$101M	$763M
Pre-tax Income	$763M	$763M
Income Tax	-$108M	$655M
Other Items	$15.9M	$671M
Net Income	$671M	$671M

Revenue$4.2B
Cost of Revenue-$2.48B
Gross Profit$1.72B
Operating Expenses-$856M
Operating Income$864M
Other Income / Expense-$101M
Pre-tax Income$763M
Income Tax-$108M
Other Items$15.9M
Net Income$671M

Want to see what changed vs last year?Profit Bridge

Frequently asked questions

Data & methodology

Pentair (PNR) Key Financials

Charts, filings, and peer comparison for every metric

Explore more

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

Overview

PNR Overview

Counters

Income Statement

Cash Flow

Capital Return

How this company returns cash to shareholders — buybacks, dividends, and stock splits.

Forecast & Valuation