What is the difference between revenue and net income?
Revenue is the money a company brought in from selling products or services, after discounts, returns and allowances. It is the first line of the income statement, so it is called the top line.[S1][S2]
Net income is what is left after every cost, interest and income tax. It is the bottom line, and it can be a loss.[S1]
What sits between the two lines?
For most companies, SEC rules (Rule 5-03) list the lines an income statement should show, in order.[S2] Going down from revenue, they include:
- the cost of the goods or services sold;
- selling, general and administrative expenses;
- interest, plus other non-operating income and expenses;
- income tax;
- discontinued operations.
Why can the two move apart?
Every line in between can change on its own. Costs can grow faster than sales. Interest and income tax sit below revenue, so a change in either moves net income but not revenue.[S2]
Gains work the same way. For most companies, SEC rules (Rule 5-03) count profits on securities as non-operating income, not revenue.[S2]
Where do you find both in a 10-K or 10-Q?
Both are on the income statement, sometimes called the statement of operations. In a 10-K it is in Item 8.[S3] In a 10-Q it is in Part I, Item 1.[S4]
Some companies split off the net income that belongs to outside owners of subsidiaries.[S2] Cityfort shows the part that belongs to the company's own shareholders.
Walmart's revenue was $713.2B (FY2026). Its net income was $21.9B (FY2026).