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 Visa (V) revenue becomes net income?

For TTM through Q1 2026, Visa turned $43B of revenue into $22.2B of net income — a net margin of 51.7%. The waterfall shows where the rest goes: cost of revenue, operating expenses, non-operating items, and taxes.

What are Visa (V) gross, operating, and net margins?

For TTM through Q1 2026, Visa reported a gross margin of 81.3%, an operating margin of 61.1%, and a net margin of 51.7%. Each subtotal in the waterfall corresponds to one of these margins.

Why does Visa (V) 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.

Visa (V) Income Statement Waterfall

Revenue

$43B

Gross Margin

+81.3%

Operating Margin

+61.1%

Net Margin

+51.7%

Income statement waterfall for Visa (V) — TTM through Q1 2026

Net income: $22.2B

Margin breakdown for Visa (V) — TTM through Q1 2026

Line item	Amount	Running total
Revenue	$43B	$43B
Cost of Revenue	-$8.05B	$35B
Gross Profit	$35B	$35B
Operating Expenses	-$8.68B	$26.3B
Operating Income	$26.3B	$26.3B
Other Income / Expense	$160M	$26.5B
Pre-tax Income	$26.5B	$26.5B
Income Tax	-$4.22B	$22.2B
Net Income	$22.2B	$22.2B

Revenue$43B
Cost of Revenue-$8.05B
Gross Profit$35B
Operating Expenses-$8.68B
Operating Income$26.3B
Other Income / Expense$160M
Pre-tax Income$26.5B
Income Tax-$4.22B
Net Income$22.2B

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