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 Rockwell Automation (ROK) revenue becomes net income?

For TTM through Q1 2026, Rockwell Automation turned $8.8B of revenue into $1.09B of net income — a net margin of 12.4%. The waterfall shows where the rest goes: cost of revenue, operating expenses, non-operating items, and taxes.

What are Rockwell Automation (ROK) gross, operating, and net margins?

For TTM through Q1 2026, Rockwell Automation reported a gross margin of 52.5%, an operating margin of 19.1%, and a net margin of 12.4%. Each subtotal in the waterfall corresponds to one of these margins.

Why does Rockwell Automation (ROK) 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.

Rockwell Automation (ROK) Income Statement Waterfall

Revenue

$8.8B

Gross Margin

+52.5%

Operating Margin

+19.1%

Net Margin

+12.4%

Income statement waterfall for Rockwell Automation (ROK) — TTM through Q1 2026

Net income: $1.09B

Margin breakdown for Rockwell Automation (ROK) — TTM through Q1 2026

Line item	Amount	Running total
Revenue	$8.8B	$8.8B
Cost of Revenue	-$4.18B	$4.63B
Gross Profit	$4.63B	$4.63B
Operating Expenses	-$2.95B	$1.68B
Operating Income	$1.68B	$1.68B
Other Income / Expense	-$493M	$1.19B
Pre-tax Income	$1.19B	$1.19B
Income Tax	-$211M	$976M
Other Items	$112M	$1.09B
Net Income	$1.09B	$1.09B

Revenue$8.8B
Cost of Revenue-$4.18B
Gross Profit$4.63B
Operating Expenses-$2.95B
Operating Income$1.68B
Other Income / Expense-$493M
Pre-tax Income$1.19B
Income Tax-$211M
Other Items$112M
Net Income$1.09B

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