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 Regeneron Pharmaceuticals (REGN) revenue becomes net income?

For TTM through Q1 2026, Regeneron Pharmaceuticals turned $14.9B of revenue into $4.42B of net income — a net margin of 29.6%. The waterfall shows where the rest goes: cost of revenue, operating expenses, non-operating items, and taxes.

What are Regeneron Pharmaceuticals (REGN) gross, operating, and net margins?

For TTM through Q1 2026, Regeneron Pharmaceuticals reported a gross margin of 84.5%, an operating margin of 24.3%, and a net margin of 29.6%. Each subtotal in the waterfall corresponds to one of these margins.

Why does Regeneron Pharmaceuticals (REGN) 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.

Regeneron Pharmaceuticals (REGN) Income Statement Waterfall

Revenue

$14.9B

Gross Margin

+84.5%

Operating Margin

+24.3%

Net Margin

+29.6%

Income statement waterfall for Regeneron Pharmaceuticals (REGN) — TTM through Q1 2026

Net income: $4.42B

Margin breakdown for Regeneron Pharmaceuticals (REGN) — TTM through Q1 2026

Line item	Amount	Running total
Revenue	$14.9B	$14.9B
Cost of Revenue	-$2.31B	$12.6B
Gross Profit	$12.6B	$12.6B
Operating Expenses	-$8.98B	$3.63B
Operating Income	$3.63B	$3.63B
Other Income / Expense	$1.53B	$5.16B
Pre-tax Income	$5.16B	$5.16B
Income Tax	-$734M	$4.42B
Net Income	$4.42B	$4.42B

Revenue$14.9B
Cost of Revenue-$2.31B
Gross Profit$12.6B
Operating Expenses-$8.98B
Operating Income$3.63B
Other Income / Expense$1.53B
Pre-tax Income$5.16B
Income Tax-$734M
Net Income$4.42B

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