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 Tyson Foods (TSN) revenue becomes net income?

For TTM through Q1 2026, Tyson Foods turned $55.7B of revenue into $453M of net income — a net margin of 0.8%. The waterfall shows where the rest goes: cost of revenue, operating expenses, non-operating items, and taxes.

What are Tyson Foods (TSN) gross, operating, and net margins?

For TTM through Q1 2026, Tyson Foods reported a gross margin of 6.5%, an operating margin of 2.3%, and a net margin of 0.8%. Each subtotal in the waterfall corresponds to one of these margins.

Why does Tyson Foods (TSN) 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.

Tyson Foods (TSN) Income Statement Waterfall

Revenue

$55.7B

Gross Margin

+6.5%

Operating Margin

+2.3%

Net Margin

+0.8%

Income statement waterfall for Tyson Foods (TSN) — TTM through Q1 2026

Net income: $453M

Margin breakdown for Tyson Foods (TSN) — TTM through Q1 2026

Line item	Amount	Running total
Revenue	$55.7B	$55.7B
Cost of Revenue	-$52.1B	$3.65B
Gross Profit	$3.65B	$3.65B
Operating Expenses	-$2.37B	$1.28B
Operating Income	$1.28B	$1.28B
Other Income / Expense	-$537M	$747M
Pre-tax Income	$747M	$747M
Income Tax	-$266M	$481M
Other Items	-$28M	$453M
Net Income	$453M	$453M

Revenue$55.7B
Cost of Revenue-$52.1B
Gross Profit$3.65B
Operating Expenses-$2.37B
Operating Income$1.28B
Other Income / Expense-$537M
Pre-tax Income$747M
Income Tax-$266M
Other Items-$28M
Net Income$453M

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