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 Thomson Reuters (TRI) revenue becomes net income?

For TTM through Q1 2026, Thomson Reuters turned $7.66B of revenue into $1.53B of net income — a net margin of 19.9%. The waterfall shows where the rest goes: cost of revenue, operating expenses, non-operating items, and taxes.

What are Thomson Reuters (TRI) gross, operating, and net margins?

For TTM through Q1 2026, Thomson Reuters reported a gross margin of 75.8%, an operating margin of 26.7%, and a net margin of 19.9%. Each subtotal in the waterfall corresponds to one of these margins.

Why does Thomson Reuters (TRI) 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.

Thomson Reuters (TRI) Income Statement Waterfall

Revenue

$7.66B

Gross Margin

+75.8%

Operating Margin

+26.7%

Net Margin

+19.9%

Income statement waterfall for Thomson Reuters (TRI) — TTM through Q1 2026

Net income: $1.53B

Margin breakdown for Thomson Reuters (TRI) — TTM through Q1 2026

Line item	Amount	Running total
Revenue	$7.66B	$7.66B
Cost of Revenue	-$1.85B	$5.81B
Gross Profit	$5.81B	$5.81B
Operating Expenses	-$3.77B	$2.04B
Operating Income	$2.04B	$2.04B
Other Income / Expense	-$52M	$1.99B
Pre-tax Income	$1.99B	$1.99B
Income Tax	-$456M	$1.54B
Net Income	$1.53B	$1.53B

Revenue$7.66B
Cost of Revenue-$1.85B
Gross Profit$5.81B
Operating Expenses-$3.77B
Operating Income$2.04B
Other Income / Expense-$52M
Pre-tax Income$1.99B
Income Tax-$456M
Net Income$1.53B

Want to see what changed vs last year?Profit Bridge

Frequently asked questions

Data & methodology

Thomson Reuters (TRI) Key Financials

Charts, filings, and peer comparison for every metric

Explore more

Deep-dives across the income statement, cash flow, capital return, and valuation

Overview

TRI Overview

Counters

Income Statement

Cash Flow

Capital Return

How this company returns cash to shareholders — buybacks, dividends, and stock splits.

Forecast & Valuation