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 Veralto (VLTO) revenue becomes net income?

For TTM through Q2 2026, Veralto turned $5.59B of revenue into $969M of net income — a net margin of 17.3%. The waterfall shows where the rest goes: cost of revenue, operating expenses, non-operating items, and taxes.

What are Veralto (VLTO) gross, operating, and net margins?

For TTM through Q2 2026, Veralto reported a gross margin of 59.9%, an operating margin of 23.1%, and a net margin of 17.3%. Each subtotal in the waterfall corresponds to one of these margins.

Why does Veralto (VLTO) 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.

Veralto (VLTO) Income Statement Waterfall

Revenue

$5.59B

Gross Margin

+59.9%

Operating Margin

+23.1%

Net Margin

+17.3%

Income statement waterfall for Veralto (VLTO) — TTM through Q2 2026

Net income: $969M

Margin breakdown for Veralto (VLTO) — TTM through Q2 2026

Line item	Amount	Running total
Revenue	$5.59B	$5.59B
Cost of Revenue	-$2.25B	$3.35B
Gross Profit	$3.35B	$3.35B
Operating Expenses	-$2.06B	$1.29B
Operating Income	$1.29B	$1.29B
Other Income / Expense	-$88M	$1.21B
Pre-tax Income	$1.21B	$1.21B
Income Tax	-$236M	$969M
Net Income	$969M	$969M

Revenue$5.59B
Cost of Revenue-$2.25B
Gross Profit$3.35B
Operating Expenses-$2.06B
Operating Income$1.29B
Other Income / Expense-$88M
Pre-tax Income$1.21B
Income Tax-$236M
Net Income$969M

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