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 Quanta Services (PWR) revenue becomes net income?

For TTM through Q1 2026, Quanta Services turned $30B of revenue into $1.12B of net income — a net margin of 3.7%. The waterfall shows where the rest goes: cost of revenue, operating expenses, non-operating items, and taxes.

What are Quanta Services (PWR) gross, operating, and net margins?

For TTM through Q1 2026, Quanta Services reported a gross margin of 13.6%, an operating margin of 5.8%, and a net margin of 3.7%. Each subtotal in the waterfall corresponds to one of these margins.

Why does Quanta Services (PWR) 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.

Quanta Services (PWR) Income Statement Waterfall

Revenue

$30B

Gross Margin

+13.6%

Operating Margin

+5.8%

Net Margin

+3.7%

Income statement waterfall for Quanta Services (PWR) — TTM through Q1 2026

Net income: $1.12B

Margin breakdown for Quanta Services (PWR) — TTM through Q1 2026

Line item	Amount	Running total
Revenue	$30B	$30B
Cost of Revenue	-$25.9B	$4.08B
Gross Profit	$4.08B	$4.08B
Operating Expenses	-$2.35B	$1.73B
Operating Income	$1.73B	$1.73B
Other Income / Expense	-$250M	$1.48B
Pre-tax Income	$1.48B	$1.48B
Income Tax	-$354M	$1.12B
Net Income	$1.12B	$1.12B

Revenue$30B
Cost of Revenue-$25.9B
Gross Profit$4.08B
Operating Expenses-$2.35B
Operating Income$1.73B
Other Income / Expense-$250M
Pre-tax Income$1.48B
Income Tax-$354M
Net Income$1.12B

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