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 Skyworks Solutions (SWKS) revenue becomes net income?

For TTM through Q2 2026, Skyworks Solutions turned $4.04B of revenue into $361M of net income — a net margin of 8.9%. The waterfall shows where the rest goes: cost of revenue, operating expenses, non-operating items, and taxes.

What are Skyworks Solutions (SWKS) gross, operating, and net margins?

For TTM through Q2 2026, Skyworks Solutions reported a gross margin of 41.1%, an operating margin of 9.4%, and a net margin of 8.9%. Each subtotal in the waterfall corresponds to one of these margins.

Why does Skyworks Solutions (SWKS) 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.

Skyworks Solutions (SWKS) Income Statement Waterfall

Revenue

$4.04B

Gross Margin

+41.1%

Operating Margin

+9.4%

Net Margin

+8.9%

Income statement waterfall for Skyworks Solutions (SWKS) — TTM through Q2 2026

Net income: $361M

Margin breakdown for Skyworks Solutions (SWKS) — TTM through Q2 2026

Line item	Amount	Running total
Revenue	$4.04B	$4.04B
Cost of Revenue	-$2.38B	$1.66B
Gross Profit	$1.66B	$1.66B
Operating Expenses	-$1.28B	$379M
Operating Income	$379M	$379M
Other Income / Expense	$10.2M	$389M
Pre-tax Income	$389M	$389M
Income Tax	-$27.9M	$361M
Net Income	$361M	$361M

Revenue$4.04B
Cost of Revenue-$2.38B
Gross Profit$1.66B
Operating Expenses-$1.28B
Operating Income$379M
Other Income / Expense$10.2M
Pre-tax Income$389M
Income Tax-$27.9M
Net Income$361M

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