Revenue (Umsatz)
The total income a company earns from selling its products and services.
In short
As of 8 October 2026Revenue is the total income a company earns from its products and services before costs are deducted. Revenue is not profit: only after materials, wages, interest and taxes does net profit remain. A retailer can have huge revenue and still earn little, while a software company can do the opposite.
Revenue (German: Umsatz) is everything a company takes in from its products and services over a period, before any costs. Revenue is therefore not the same as profit.
Materials, wages, rent and other costs are deducted from revenue, leaving EBIT. After interest and taxes comes net profit, from which earnings per share are calculated. Growing revenue is good, but only if profit remains at the end.
Example: a retailer has revenue of 50 billion euros and earns 1 billion euros, a 2 % margin. A software company has revenue of 10 billion euros and earns 2.5 billion euros: less revenue but far more profit. How companies make money is covered in what is a stock?
Related terms
As of 8 October 2026 · Educational content, not investment or tax advice.