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Applied Materials cash flow, quarter by quarter

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

Applied Materials: free cash flow by quarterApplied Materials: free cash flow by quarter$2.2BQ4 FY24$544MQ1 FY25$1.1BQ2 FY25$2.0BQ3 FY25$2.0BQ4 FY25$1.0BQ1 FY26$210MQ2 FY26$2.3BQ3 FY26
Operating cash flow less capital spending.
Applied Materials: operating cash flow against capital spendingApplied Materials: operating cash flow against capital spendingOperating cash flowCapital spending$2.6B$407MQ4 FY24$925M$381MQ1 FY25$1.6B$510MQ2 FY25$2.6B$584MQ3 FY25$2.8B$785MQ4 FY25$1.7B$646MQ1 FY26$845M$635MQ2 FY26$3.0B$707MQ3 FY26
Latest (Q3 FY26): Operating cash flow $3.0B, Capital spending $707M.

Capital allocation, year by year

Applied Materials: where the cash came from (up) and went (down), by fiscal yearApplied Materials: where the cash came from (up) and went (down), by fiscal yearOperating cash flowNet borrowingShares issuedAsset salesCapital spendingAcquisitionsBuybacksDividendsFY21: Operating cash flow $5.4BFY21: Shares issued $175MFY21: Capital spending −$668MFY21: Acquisitions −$12.0MFY21: Buybacks −$3.8BFY21: Dividends −$838M$5.6BFY21FY22: Operating cash flow $5.4BFY22: Shares issued $199MFY22: Capital spending −$787MFY22: Acquisitions −$441MFY22: Buybacks −$6.1BFY22: Dividends −$873M$5.6BFY22FY23: Operating cash flow $8.7BFY23: Net borrowing $84.0MFY23: Shares issued $227MFY23: Capital spending −$1.1BFY23: Acquisitions −$25.0MFY23: Buybacks −$2.2BFY23: Dividends −$975M$9.0BFY23FY24: Operating cash flow $8.7BFY24: Net borrowing $593MFY24: Shares issued $243MFY24: Capital spending −$1.2BFY24: Buybacks −$3.8BFY24: Dividends −$1.2B$9.5BFY24FY25: Operating cash flow $8.0BFY25: Net borrowing $292MFY25: Shares issued $261MFY25: Asset sales $33.0MFY25: Capital spending −$2.3BFY25: Acquisitions −$29.0MFY25: Buybacks −$4.9BFY25: Dividends −$1.4B$8.5BFY25
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

Applied Materials: sources (+) and uses (−) of cash, Q3 FY26Applied Materials: sources (+) and uses (−) of cash, Q3 FY26Operating cash flow$3.0BCash drawn (+) / kept (−)−$735MCapital spending−$707MOther investing−$619MBuybacks−$440MDividends−$420MTaxes on employees’ shares−$128MNet borrowing (+) / repaid (−)$99.0MAcquisitions−$87.0M
Applied Materials: sources (+) and uses (−) of cash, TTM to Q3 FY26Applied Materials: sources (+) and uses (−) of cash, TTM to Q3 FY26Operating cash flow$8.4BCapital spending−$2.8BBuybacks−$2.0BCash drawn (+) / kept (−)−$1.6BDividends−$1.5BTaxes on employees’ shares−$475MOther financing$290MShares issued$263MAcquisitions−$262MOther investing−$262MAsset & business sales$6.0M

From profit to cash

Applied Materials: net income to operating cash flow, Q3 FY26Applied Materials: net income to operating cash flow, Q3 FY26Net income$2.5BDepreciation & amortization$151MStock-based pay$169MGains on investments$229MReceivables−$1.3BInventory−$208MPayables$633MDeferred revenue$701MPrepaid and other assets$61.0MOther liabilities$10.0MIncome taxes payable$137MOperating cash flow$3.0B
Non-cash charges are added back; money tied up in receivables or inventory is subtracted.
QuarterReceivable daysInventory daysPayable daysCash conversion cycle
Q3 FY267013046154
Q2 FY266514247160
Q1 FY266615250168
Q4 FY257315148176
Q3 FY257513943171
Q2 FY257814045174
Q1 FY257113541166
Q4 FY246613537163

Every quarter

QuarterOperating cash flowCapital spendingAcquisitionsBuybacksDividendsNet borrowing (+) / repaid (−)Shares issuedCash 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.

Applied Materials: every quarter, Q/Q and Y/Y → Open in the app

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.