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Merck cash flow, quarter by quarter

Latest: Q3 2026 · from the cash-flow statements filed with the SEC

Free cash flow$5.5B in Q3 2026 · $14.7B over twelve months

Operating cash flow$6.6B
Capital spending−$1.0B
Free cash flow+$5.5B
Cash / net income1.3×
Cash conversion cycle97 days

Analysis

In Q3 2026, Merck generated $6.6B of operating cash flow and spent $1.0B on capital projects, leaving free cash flow of $5.5B. That is $1.3B less than in Q3 2025 ($6.8B).

Over the twelve months to Sep 30, 2026, operating cash flow was $18.7B; the largest uses were acquisitions ($18.8B), dividends ($8.4B), other investing ($5.6B); besides operations, cash came from net borrowing (+) / repaid (−) ($12.7B), shares issued ($494M); the cash balance fell by $8.6B.

Operating cash flow was $6.6B against net income of $5.1B — 1.3× profit, cash ran ahead of reported earnings. The largest differences: depreciation & amortization +$726M, deferred taxes −$612M, stock-based pay +$369M.

Its cash conversion cycle was 97 days (receivables 64 + inventory 116 − payables 83).

Free cash flow

Merck: free cash flow by quarterMerck: free cash flow by quarter$2.5BQ4 2024$1.2BQ1 2025$2.5BQ2 2025$6.8BQ3 2025$1.8BQ4 2025$2.9BQ1 2026$4.5BQ2 2026$5.5BQ3 2026
Operating cash flow less capital spending.
Merck: operating cash flow against capital spendingMerck: operating cash flow against capital spendingOperating cash flowCapital spending$3.5B$937MQ4 2024$2.5B$1.3BQ1 2025$3.3B$764MQ2 2025$7.8B$987MQ3 2025$2.9B$1.0BQ4 2025$3.9B$991MQ1 2026$5.4B$893MQ2 2026$6.6B$1.0BQ3 2026
Latest (Q3 2026): Operating cash flow $6.6B, Capital spending $1.0B.

Capital allocation, year by year

Merck: where the cash came from (up) and went (down), by fiscal yearMerck: where the cash came from (up) and went (down), by fiscal yearOperating cash flowNet borrowingShares issuedCapital spendingAcquisitionsBuybacksDividendsFY2021: Operating cash flow $13.1BFY2021: Net borrowing −$2.4BFY2021: Shares issued $202MFY2021: Capital spending −$4.4BFY2021: Acquisitions −$179MFY2021: Buybacks −$840MFY2021: Dividends −$6.6B$13.3BFY2021FY2022: Operating cash flow $19.1BFY2022: Net borrowing −$2.3BFY2022: Shares issued $384MFY2022: Capital spending −$4.4BFY2022: Dividends −$7.0B$19.5BFY2022FY2023: Operating cash flow $13.0BFY2023: Net borrowing $4.2BFY2023: Shares issued $125MFY2023: Capital spending −$3.9BFY2023: Buybacks −$1.3BFY2023: Dividends −$7.4B$17.3BFY2023FY2024: Operating cash flow $21.5BFY2024: Net borrowing $2.3BFY2024: Shares issued $177MFY2024: Capital spending −$3.4BFY2024: Buybacks −$1.3BFY2024: Dividends −$7.8B$24.0BFY2024FY2025: Operating cash flow $16.5BFY2025: Net borrowing $11.4BFY2025: Shares issued $92.0MFY2025: Capital spending −$4.1BFY2025: Acquisitions −$10.0BFY2025: Buybacks −$5.1BFY2025: Dividends −$8.2B$27.9BFY2025
Over these 5 years operating cash flow totalled $83.2B; the largest uses were dividends ($37.1B) and capital spending ($20.2B). Cash-flow statements as filed.

Cash runway and the debt wall

Cash & investments$9.7B
Debt$53.8B
Net debt$44.1B
Due within a year$2.6B

Merck funds itself: free cash flow was $14.7B over the last twelve months, and $9.7B of cash and investments stands against $53.8B of debt ($2.6B due within a year, 3.7× covered by cash).

Merck: debt maturities by year (FY2025)Merck: debt maturities by year (FY2025)$2.6BYear 1$2.7BYear 2$2.1BYear 3$3.0BYear 4$2.7BYear 5
Principal due in each year as disclosed in the annual report, against $9.7B of cash and investments now.

Where the cash came from and went

Merck: sources (+) and uses (−) of cash, Q3 2026Merck: sources (+) and uses (−) of cash, Q3 2026Operating cash flow$6.6BCash drawn (+) / kept (−)−$2.8BDividends−$2.1BCapital spending−$1.0BBuybacks−$653MOther investing−$279MShares issued$247MOther financing$73.0MExchange rates−$46.0M
Merck: sources (+) and uses (−) of cash, TTM to Q3 2026Merck: sources (+) and uses (−) of cash, TTM to Q3 2026Acquisitions−$18.8BOperating cash flow$18.7BNet borrowing (+) / repaid (−)$12.7BCash drawn (+) / kept (−)$8.6BDividends−$8.4BOther investing−$5.6BCapital spending−$4.0BBuybacks−$3.5BShares issued$494MOther financing−$219MExchange rates−$79.0M

From profit to cash

Merck: net income to operating cash flow, Q3 2026Merck: net income to operating cash flow, Q3 2026Net income$5.1BDepreciation & amortization$726MStock-based pay$369MDeferred taxes−$612MOther non-cash$280MOperating cash flow$6.6B
Non-cash charges are added back; money tied up in receivables or inventory is subtracted.
QuarterReceivable daysInventory daysPayable daysCash conversion cycle
Q3 2026641168397
Q2 20266813180120
Q1 20266614189119
Q4 20256710971105
Q3 20256415696124
Q2 20256516498131
Q1 202561162103120
Q4 20246414892120

Every quarter

QuarterOperating cash flowCapital spendingAcquisitionsBuybacksDividendsNet borrowing (+) / repaid (−)Shares issuedCash drawn (+) / kept (−)Free cash flow
Q3 2026$6.6B−$1.0B—−$653M−$2.1B—$247M−$2.8B$5.5B
Q2 2026$5.4B−$893M—−$757M−$2.1B−$5.0M$43.0M−$1.5B$4.5B
Q1 2026$3.9B−$991M−$8.8B−$874M−$2.1B−$79.0M$157M$9.3B$2.9B
Q4 2025$2.9B−$1.0B−$10.0B−$1.3B−$2.0B$7.9B$47.0M$3.6B$1.8B
Q3 2025$7.8B−$987M—−$1.3B−$2.0B$6.0B$14.0M−$10.2B$6.8B
Q2 2025$3.3B−$764M—−$1.3B−$2.1B—$12.0M$659M$2.5B
Q1 2025$2.5B−$1.3B—−$1.2B−$2.0B−$2.5B$19.0M$4.6B$1.2B
Q4 2024$3.5B−$937M$1.3B−$489M−$2.0B−$539M$12.0M$1.4B$2.5B

Merck: income statement and cash flow

Merck, Q3 2026: revenue $18.1B (+5% year over year), operating margin 30.7%. The chart follows the revenue to costs, profit and cash.

Merck: 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.