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 UnitedHealth Group (UNH) revenue becomes net income?

For TTM through Q1 2026, UnitedHealth Group turned $449.71B of revenue into $12.04B of net income — a net margin of 2.7%. The waterfall shows where the rest goes: cost of revenue, operating expenses, non-operating items, and taxes.

What are UnitedHealth Group (UNH) gross, operating, and net margins?

For TTM through Q1 2026, UnitedHealth Group reported a gross margin of 18.8%, an operating margin of 4.2%, and a net margin of 2.7%. Each subtotal in the waterfall corresponds to one of these margins.

Why does UnitedHealth Group (UNH) 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.

UnitedHealth Group (UNH) Income Statement Waterfall

Revenue

$449.71B

Gross Margin

+18.8%

Operating Margin

+4.2%

Net Margin

+2.7%

Income statement waterfall for UnitedHealth Group (UNH) — TTM through Q1 2026

Net income: $12.04B

Margin breakdown for UnitedHealth Group (UNH) — TTM through Q1 2026

Line item	Amount	Running total
Revenue	$449.71B	$449.71B
Cost of Revenue	−$365.16B	$84.55B
Gross Profit	$84.55B	$84.55B
Operating Expenses	−$65.72B	$18.84B
Operating Income	$18.84B	$18.84B
Other Income / Expense	−$4.28B	$14.55B
Pre-tax Income	$14.55B	$14.55B
Income Tax	−$1.74B	$12.81B
Other Items	−$770.00M	$12.04B
Net Income	$12.04B	$12.04B

Revenue$449.71B
Cost of Revenue−$365.16B
Gross Profit$84.55B
Operating Expenses−$65.72B
Operating Income$18.84B
Other Income / Expense−$4.28B
Pre-tax Income$14.55B
Income Tax−$1.74B
Other Items−$770.00M
Net Income$12.04B

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Income statement waterfall for UnitedHealth Group (UNH) — TTM through Q1 2026

Margin breakdown for UnitedHealth Group (UNH) — TTM through Q1 2026

Frequently asked questions

+What is an income statement waterfall?

+How much of UnitedHealth Group (UNH) revenue becomes net income?

+What are UnitedHealth Group (UNH) gross, operating, and net margins?

+Why does UnitedHealth Group (UNH) have such a high (or low) gross margin?

+What is the difference between gross, operating, and net margin?

Data & methodology

+What is this view?

+How to read this waterfall

+How is the data calculated?

+What is the USD toggle?

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