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 PPL (PPL) revenue becomes net income?

For TTM through Q1 2026, PPL turned $9.31B of revenue into $1.22B of net income — a net margin of 13.1%. The waterfall shows where the rest goes: cost of revenue, operating expenses, non-operating items, and taxes.

What are PPL (PPL) gross, operating, and net margins?

For TTM through Q1 2026, PPL reported a gross margin of 35.3%, an operating margin of 23.5%, and a net margin of 13.1%. Each subtotal in the waterfall corresponds to one of these margins.

Why does PPL (PPL) 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.

PPL (PPL) Income Statement Waterfall

Revenue

$9.31B

Gross Margin

+35.3%

Operating Margin

+23.5%

Net Margin

+13.1%

Income statement waterfall for PPL (PPL) — TTM through Q1 2026

Net income: $1.22B

Margin breakdown for PPL (PPL) — TTM through Q1 2026

Line item	Amount	Running total
Revenue	$9.31B	$9.31B
Cost of Revenue	-$6.03B	$3.29B
Gross Profit	$3.29B	$3.29B
Operating Expenses	-$1.1B	$2.19B
Operating Income	$2.19B	$2.19B
Other Income / Expense	-$673M	$1.52B
Pre-tax Income	$1.52B	$1.52B
Income Tax	-$297M	$1.22B
Net Income	$1.22B	$1.22B

Revenue$9.31B
Cost of Revenue-$6.03B
Gross Profit$3.29B
Operating Expenses-$1.1B
Operating Income$2.19B
Other Income / Expense-$673M
Pre-tax Income$1.52B
Income Tax-$297M
Net Income$1.22B

Want to see what changed vs last year?Profit Bridge

Frequently asked questions

Data & methodology

PPL (PPL) 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

PPL Overview

Counters

Income Statement

Cash Flow

Capital Return

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

Forecast & Valuation