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 Constellation Brands (STZ) revenue becomes net income?

For TTM through Q2 2026, Constellation Brands turned $9.06B of revenue into $1.82B of net income — a net margin of 20.1%. The waterfall shows where the rest goes: cost of revenue, operating expenses, non-operating items, and taxes.

What are Constellation Brands (STZ) gross, operating, and net margins?

For TTM through Q2 2026, Constellation Brands reported a gross margin of 52.6%, an operating margin of 32.1%, and a net margin of 20.1%. Each subtotal in the waterfall corresponds to one of these margins.

Why does Constellation Brands (STZ) 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.

Constellation Brands (STZ) Income Statement Waterfall

Revenue

$9.06B

Gross Margin

+52.6%

Operating Margin

+32.1%

Net Margin

+20.1%

Income statement waterfall for Constellation Brands (STZ) — TTM through Q2 2026

Net income: $1.82B

Margin breakdown for Constellation Brands (STZ) — TTM through Q2 2026

Line item	Amount	Running total
Revenue	$9.06B	$9.06B
Cost of Revenue	-$4.29B	$4.77B
Gross Profit	$4.77B	$4.77B
Operating Expenses	-$1.85B	$2.91B
Operating Income	$2.91B	$2.91B
Other Income / Expense	-$384M	$2.53B
Pre-tax Income	$2.53B	$2.53B
Income Tax	-$622M	$1.9B
Other Items	-$80.5M	$1.82B
Net Income	$1.82B	$1.82B

Revenue$9.06B
Cost of Revenue-$4.29B
Gross Profit$4.77B
Operating Expenses-$1.85B
Operating Income$2.91B
Other Income / Expense-$384M
Pre-tax Income$2.53B
Income Tax-$622M
Other Items-$80.5M
Net Income$1.82B

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