InsiderFlow › Glossary › What is net income?

What is net income?

Net income is what's left of revenue after all costs, interest and taxes: the company's final profit.

It's the income statement's "bottom line": revenue minus operating costs, depreciation, interest and taxes. Divided by the share count it becomes EPS, the number that moves stocks at every earnings report.

Net margin (profit/revenue) varies hugely across sectors: a supermarket lives on 2–3% margins, a software company can exceed 30%. Compare companies with their peers, not in absolute terms.

Concrete example

With $100 billion in revenue and $25 billion in net income, the margin is 25%: for every dollar sold, 25 cents become shareholder profit.

How you see it in InsiderFlow

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Frequently asked questions

Can net income be manipulated?

Within limits, yes — via one-off items and accounting estimates: that's why cash flow gets checked too.

Where does net income go?

Reinvested in the business, paid out as dividends, or used to buy back shares.