Gross Profit vs. Operating Profit vs. Net Profit: Which One Shows Where Your Money Goes?
Gross margin tests pricing, operating margin tests overhead, net margin tests financing and tax — read the three as a funnel to find where profit leaks.
#income-statement
Income Statement
Understand, read, and analyze income statements and profit and loss reports
What Is Cost of Goods Sold (COGS) and Why It Decides Your True Margin
COGS is the direct cost of what you sold — materials, labor, freight. Revenue minus COGS is gross profit, the verdict on whether your pricing works.
Held for Sale vs. Discontinued Operations: How to Classify a Divested Unit (and Stop Depreciating the Right Assets)
Held for sale freezes depreciation once all six criteria are met; discontinued operations further requires a disposed component that is a strategic shift.
Conagra Q1 FY2027 Earnings: EPS Up 6% on Falling Sales, and a Flour Mill Is Why
Conagra's Q1 FY2027 EPS rose 5.9% to $0.36 while sales fell 1.4% and volume 2.1%. Lower overhead and a flour-mill joint venture, not food, drove the gain.
Constellation Brands Q2 FY2027 Earnings: Beer Makes 94% of Sales and All the Profit
Constellation Brands' Q2 FY2027 net sales rose 6% to $2.63B and EPS rose 25% to $3.32. Beer earned $964M at a 39.0% margin; wine and spirits earned $6M.
Lamb Weston Q1 FY2027 Earnings: Sales Up 1%, Profit Down 55% as Plants Close
Lamb Weston's Q1 FY2027 net sales rose 1% to $1.67B while net income fell 55% to $29.1M. Plant-closure and legal charges put $51M into cost of sales.
HPE Q3 FY2026 Earnings: A $12.2B Record Built on Juniper and Memory Prices
HPE's record $12.2B quarter (+33.7%) came from Juniper networking and memory-driven server prices, with inventory at $11.8B and a $444M one-time gain.
Acuity FY2026: GAAP EPS Up 36% to $17.05, Adjusted EPS Up 10.5%
Acuity's FY2026 GAAP EPS rose 36.1% to $17.05 while adjusted EPS rose only 10.5%; tariff refunds and a 2025 pension charge explain the gap.
Cal-Maine Q1 FY2027: Eggs Fall 59%, $199M Profit Turns to $59M Loss
Cal-Maine's conventional egg price fell 59.3% in Q1 FY2027, turning $199.3M of profit into a $58.6M loss. Five years of filings show the full commodity cycle.
FactSet FY2026: GAAP EPS Missed at $14.57, Adjusted Beat at $18.01
FactSet's FY2026 GAAP EPS of $14.57 missed guidance while adjusted EPS of $18.01 beat it. We walk the $126.0M gap between the two net incomes, item by item.
Inditex H1 2026: Sales Up 7.6% to €19.8B, Zara Segment Profit Up Only 2.5%
Inditex H1 2026 sales rose 7.6% to €19.8B and net income 6.8% to €2.98B, but Zara segment profit grew just 2.5% as operating costs outran sales.
RPM Q1 FY2027: Record $2.22B Sales, but Gross Margin Fell a Point
RPM's Q1 FY2027 sales rose 4.8% to $2.22B and net income 12.6%, but gross margin fell to 41.3%; $15.7M of one-time gains flattered profit.