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 Veeva Systems (VEEV) revenue becomes net income?

For TTM through Q2 2026, Veeva Systems turned $3.32B of revenue into $942M of net income — a net margin of 28.4%. The waterfall shows where the rest goes: cost of revenue, operating expenses, non-operating items, and taxes.

What are Veeva Systems (VEEV) gross, operating, and net margins?

For TTM through Q2 2026, Veeva Systems reported a gross margin of 75%, an operating margin of 28.8%, and a net margin of 28.4%. Each subtotal in the waterfall corresponds to one of these margins.

Why does Veeva Systems (VEEV) 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.

Veeva Systems (VEEV) Income Statement Waterfall

Revenue

$3.32B

Gross Margin

+75.0%

Operating Margin

+28.8%

Net Margin

+28.4%

Income statement waterfall for Veeva Systems (VEEV) — TTM through Q2 2026

Net income: $942M

Margin breakdown for Veeva Systems (VEEV) — TTM through Q2 2026

Line item	Amount	Running total
Revenue	$3.32B	$3.32B
Cost of Revenue	-$831M	$2.49B
Gross Profit	$2.49B	$2.49B
Operating Expenses	-$1.53B	$956M
Operating Income	$956M	$956M
Other Income / Expense	$287M	$1.24B
Pre-tax Income	$1.24B	$1.24B
Income Tax	-$302M	$942M
Net Income	$942M	$942M

Revenue$3.32B
Cost of Revenue-$831M
Gross Profit$2.49B
Operating Expenses-$1.53B
Operating Income$956M
Other Income / Expense$287M
Pre-tax Income$1.24B
Income Tax-$302M
Net Income$942M

Want to see what changed vs last year?Profit Bridge

Frequently asked questions

Data & methodology

Veeva Systems (VEEV) 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

VEEV Overview

Counters

Income Statement

Cash Flow

Capital Return

Buybacks1.56% TTM

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

Forecast & Valuation