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 Science Applications International (SAIC) revenue becomes net income?

For TTM through Q2 2026, Science Applications International turned $7.29B of revenue into $405M of net income — a net margin of 5.6%. The waterfall shows where the rest goes: cost of revenue, operating expenses, non-operating items, and taxes.

What are Science Applications International (SAIC) gross, operating, and net margins?

For TTM through Q2 2026, Science Applications International reported a gross margin of 12.5%, an operating margin of 7.8%, and a net margin of 5.6%. Each subtotal in the waterfall corresponds to one of these margins.

Why does Science Applications International (SAIC) 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.

Science Applications International (SAIC) Income Statement Waterfall

Revenue

$7.29B

Gross Margin

+12.5%

Operating Margin

+7.8%

Net Margin

+5.6%

Income statement waterfall for Science Applications International (SAIC) — TTM through Q2 2026

Net income: $405M

Margin breakdown for Science Applications International (SAIC) — TTM through Q2 2026

Line item	Amount	Running total
Revenue	$7.29B	$7.29B
Cost of Revenue	-$6.38B	$912M
Gross Profit	$912M	$912M
Operating Expenses	-$346M	$566M
Operating Income	$566M	$566M
Other Income / Expense	-$120M	$446M
Pre-tax Income	$446M	$446M
Income Tax	-$41M	$405M
Net Income	$405M	$405M

Revenue$7.29B
Cost of Revenue-$6.38B
Gross Profit$912M
Operating Expenses-$346M
Operating Income$566M
Other Income / Expense-$120M
Pre-tax Income$446M
Income Tax-$41M
Net Income$405M

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