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 Prudential Financial (PRU) revenue becomes net income?

For TTM through Q1 2026, Prudential Financial turned $63B of revenue into $3.47B of net income — a net margin of 5.5%. The waterfall shows where the rest goes: cost of revenue, operating expenses, non-operating items, and taxes.

What are Prudential Financial (PRU) gross, operating, and net margins?

For TTM through Q1 2026, Prudential Financial reported a gross margin of 32.9%, an operating margin of 7.1%, and a net margin of 5.5%. Each subtotal in the waterfall corresponds to one of these margins.

Why does Prudential Financial (PRU) 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.

Prudential Financial (PRU) Income Statement Waterfall

Revenue

$63B

Gross Margin

+32.9%

Operating Margin

+7.1%

Net Margin

+5.5%

Income statement waterfall for Prudential Financial (PRU) — TTM through Q1 2026

Net income: $3.47B

Margin breakdown for Prudential Financial (PRU) — TTM through Q1 2026

Line item	Amount	Running total
Revenue	$63B	$63B
Cost of Revenue	-$42.2B	$20.7B
Gross Profit	$20.7B	$20.7B
Operating Expenses	-$16.2B	$4.47B
Operating Income	$4.47B	$4.47B
Other Income / Expense	$104M	$4.57B
Pre-tax Income	$4.57B	$4.57B
Income Tax	-$975M	$3.6B
Other Items	-$130M	$3.47B
Net Income	$3.47B	$3.47B

Revenue$63B
Cost of Revenue-$42.2B
Gross Profit$20.7B
Operating Expenses-$16.2B
Operating Income$4.47B
Other Income / Expense$104M
Pre-tax Income$4.57B
Income Tax-$975M
Other Items-$130M
Net Income$3.47B

Want to see what changed vs last year?Profit Bridge

Frequently asked questions

Data & methodology

Prudential Financial (PRU) Key Financials

Charts, filings, and peer comparison for every metric

Income Statement

Balance Sheet

Profitability

Cash Flow

Capital Return

Forecast & Valuation

Operations

Employees36.8K

Explore more

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

Overview

PRU Overview

Counters