Latest: Q3 FY26 · from the cash-flow statements filed with the SEC
Free cash flow$2.3B in Q3 FY26 · $5.6B over twelve months
Operating cash flow$3.0B
Capital spending−$707M
Free cash flow+$2.3B
Cash / net income1.2×
Cash conversion cycle154 days
Analysis
In Q3 FY26, Applied Materials generated $3.0B of operating cash flow and spent $707M on capital projects, leaving free cash flow of $2.3B.
Over the twelve months to Jul 26, 2026, operating cash flow was $8.4B; the largest uses were capital spending ($2.8B), buybacks ($2.0B), dividends ($1.5B); besides operations, cash came from other financing ($290M), shares issued ($263M); the cash balance rose by $1.6B.
Operating cash flow was $3.0B against net income of $2.5B — 1.2× profit, cash ran ahead of reported earnings. The largest differences: receivables −$1.3B, deferred revenue +$701M, payables +$633M.
Its cash conversion cycle was 154 days (receivables 70 + inventory 130 − payables 46).
Free cash flow
Operating cash flow less capital spending.Latest (Q3 FY26): Operating cash flow $3.0B, Capital spending $707M.
Capital allocation, year by year
Over these 5 years operating cash flow totalled $36.2B; the largest uses were buybacks ($20.8B) and capital spending ($6.0B). Cash-flow statements as filed.
Cash runway and the debt wall
Cash & investments$9.2B
Debt$7.7B
Net cash$1.5B
Due within a year$2.5B
Applied Materials funds itself: free cash flow was $5.6B over the last twelve months, and $9.2B of cash and investments stands against $7.7B of debt ($2.5B due within a year, 3.7× covered by cash).
Where the cash came from and went
From profit to cash
Non-cash charges are added back; money tied up in receivables or inventory is subtracted.
Quarter
Receivable days
Inventory days
Payable days
Cash conversion cycle
Q3 FY26
70
130
46
154
Q2 FY26
65
142
47
160
Q1 FY26
66
152
50
168
Q4 FY25
73
151
48
176
Q3 FY25
75
139
43
171
Q2 FY25
78
140
45
174
Q1 FY25
71
135
41
166
Q4 FY24
66
135
37
163
Every quarter
Quarter
Operating cash flow
Capital spending
Acquisitions
Buybacks
Dividends
Net borrowing (+) / repaid (−)
Shares issued
Cash drawn (+) / kept (−)
Free cash flow
Q3 FY26
$3.0B
−$707M
−$87.0M
−$440M
−$420M
$99.0M
—
−$735M
$2.3B
Q2 FY26
$845M
−$635M
−$175M
−$400M
−$365M
−$100M
—
$928M
$210M
Q1 FY26
$1.7B
−$646M
—
−$337M
−$365M
—
—
$25.0M
$1.0B
Q4 FY25
$2.8B
−$785M
—
−$851M
−$365M
$992M
$132M
−$1.9B
$2.0B
Q3 FY25
$2.6B
−$584M
—
−$1.1B
−$368M
—
—
$790M
$2.0B
Q2 FY25
$1.6B
−$510M
−$1.0M
−$1.7B
−$325M
—
—
$111M
$1.1B
Q1 FY25
$925M
−$381M
−$28.0M
−$1.3B
−$326M
—
—
$1.8B
$544M
Q4 FY24
$2.6B
−$407M
—
−$1.4B
−$329M
−$89.0M
$124M
$265M
$2.2B
Applied Materials: income statement and cash flow
Applied Materials, Q3 FY26: revenue $9.1B (+25% year over year), operating margin 33.7%. The chart follows the revenue to costs, profit and cash.
Read automatically from the company’s XBRL cash-flow statements; quarterly figures for the fourth quarter are the year less the first three. Errors are possible. Not investment advice.