Ctrl K
Operating cash flow conversion remains strong (OCF/NI of 1.80 in 2026Q2), but FCF margins are volatile (38.6% in 2026Q2 vs. 12.3% in 2025Q4) due to working capital swings and heavy acquisition spending.
Novartis AG (NVS) cash flow statement — 28-year operating, investing & financing cash flows
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 |
|---|
| Cash from Operations | 18.39B | 19.24B | 17.62B | 14.46B | 14.24B | 15.07B | 13.65B | 13.63B | 14.27B | 12.62B | 11.47B | 11.9B | 13.9B | 13.17B | 14.19B | 14.31B | 14.07B | 12.19B | 9.77B | 9.21B | 8.71B | 8.08B | 6.72B | 6.65B | 5.83B | 4.43B | 4.64B | 4.33B | 4.28B |
| Operating CF Margin % | - | 35.11% | 34.06% | 30.99% | 32.76% | 34.27% | 27.36% | 27.99% | 30.96% | 29.08% | 23.21% | 23.61% | 25.91% | 24.99% | 27.31% | 24.1% | 27.28% | 27.03% | 22.94% | 23.65% | 24.81% | 27.16% | 24.65% | 26.68% | 27.93% | 23.62% | 20.92% | 21.27% | 18.57% |
| Operating CF Growth % | -52.51% | 9.21% | 21.86% | 1.56% | -5.54% | 10.41% | 0.18% | -4.53% | 13.08% | 9.99% | -3.55% | -14.39% | 5.49% | -7.19% | -0.8% | 1.72% | 15.39% | 24.79% | 6.07% | 5.74% | 7.8% | 20.15% | 1.1% | 14.1% | 31.57% | -4.52% | 7.06% | 1.34% | - |
| Net Income | 12.76B | 14.06B | 11.94B | 8.57B | 6.05B | 22.91B | 8.07B | 7.15B | 12.61B | 7.7B | 6.7B | 7.03B | 10.73B | 9.29B | 9.62B | 9.24B | 9.97B | 8.45B | 8.16B | 6.54B | 7.02B | 6.14B | 5.77B | 5.02B | 5.22B | 4.24B | 4.39B | 4.19B | 4.41B |
| Depreciation & Amortization | 5.34B | 5.35B | 6.07B | 8.28B | 6.71B | 5.6B | 6.46B | 5.83B | 6.89B | 6.08B | 6.04B | 5.58B | 4.75B | 4.99B | 4.95B | 5.79B | 3.42B | 2.3B | 2.67B | 2.86B | 1.99B | 1.72B | 1.34B | 1.28B | 690M | 585M | 918M | 949M | 1.01B |
| Stock-Based Compensation | 571M | 0 | 1.04B | 865M | 791M | 700M | 738M | 758M | 759M | 683M | 671M | 773M | 744M | 730M | 746M | 790M | 655M | 642M | 567M | 570M | 522M | 415M | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | 949M | -361.84M | 1.7B | 551M | 1.13B | 1.63B | 1.81B | 1.79B | 1.22B | 1.3B | 1.12B | 1.11B | 1.54B | 1.44B | 1.63B | 1.53B | 1.73B | 1.47B | 1.34B | 947M | 1.28B | 1.12B | 1.13B | 1.01B | 0 | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | 792.86M | 3.27B | -2.43B | -3.44B | 359M | -15.68B | -3.14B | -2.1B | -7.71B | -3.38B | -2.98B | -1.72B | -3.25B | -2.54B | -2.61B | -2.93B | -3.47B | -1.36B | -2.34B | -1.17B | -2.27B | -2.19B | -358M | -521M | 42M | -517M | -470M | -184M | -468.02M |
| Working Capital Changes | -2.03B | -3.08B | -706M | -369M | -796M | -73M | -291M | 199M | 499M | 244M | -77M | -863M | -625M | -739M | -140M | -113M | 1.76B | 688M | -630M | -535M | 166M | 872M | 132M | 457M | -126M | 124M | -202M | -618M | -670.06M |
| Change in Receivables | -672.78M | -1.13B | -931M | -1.5B | -397M | -352M | 137M | -980M | -569M | -204M | -229M | -513M | -367M | -411M | 369M | -732M | 26M | -934M | -431M | -204M | 0 | -490M | -130M | 297M | 0 | 0 | 0 | 0 | 0 |
| Change in Inventory | -40.84M | 34.17M | -225M | -546M | -560M | -102M | -543M | -382M | -533M | -247M | -235M | -482M | -506M | -653M | -701M | 45M | 965M | 237M | -571M | -747M | -117M | 175M | 23M | -78M | -490M | -46M | 140M | 295M | 0 |
| Change in Payables | -194.29M | -274.4M | -105M | 479M | -181M | -111M | -324M | 553M | 309M | 58M | -587M | 378M | 142M | 502M | 515M | 195M | 490M | 512M | 246M | 323M | 0 | -54M | 239M | 238M | 0 | 0 | 0 | 0 | 0 |
| Cash from Investing | -17.8B | -4.9B | -7.51B | 5.6B | 1.47B | 4.21B | -13.18B | -2.23B | -5.59B | -3.12B | -3.44B | -10.78B | 881M | -3.35B | -5.67B | -792M | -15.76B | -14.22B | -10.37B | -6.24B | -6.58B | -7.48B | -3.22B | -1.3B | -3.18B | -2.82B | -131M | -1.9B | -949.85M |
| Capital Expenditures | -2.48B | -3.92B | -1.37B | -1.06B | -916M | -1.07B | -2.58B | -1.38B | -3.35B | -2.75B | -2.88B | -3.85B | -3.7B | -3.77B | -3.31B | -2.39B | -2.23B | -2.73B | -2.32B | -3.13B | -2.32B | -1.55B | -1.45B | -1.54B | -1.19B | -815M | -825M | -862M | -1.13B |
| CapEx % of Revenue | 4.45% | 7.15% | 2.64% | 2.27% | 2.11% | 2.42% | 5.18% | 2.83% | 7.28% | 6.33% | 5.82% | 7.64% | 6.9% | 7.16% | 6.36% | 4.02% | 4.33% | 6.06% | 5.44% | 8.04% | 6.61% | 5.2% | 5.32% | 6.19% | 5.68% | 4.34% | 3.72% | 4.23% | 4.9% |
| Acquisitions | -15.65B | -3.01B | -3.83B | -3.57B | -864M | 20.46B | -9.96B | -3.77B | -1.07B | -755M | -765M | -16.51B | -331M | -42M | -1.74B | -581M | -26.67B | -1.01B | -11.53B | -62M | -4.52B | -8.87B | -1.03B | -402M | -605M | -102M | -836M | 107M | 170.78M |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | -577.14M | 140.72M | -2.38B | -624M | -1.43B | -1.34B | 282M | -264M | 895M | 551M | 111M | 10.01B | 2.81B | 344M | -243M | 704M | 581M | 99M | 227M | 241M | 200M | 323M | 313M | 1.06B | -1.87B | -3.62B | -1.63B | -218M | 8.72M |
| Cash from Financing | 472.2M | -14.94B | -11.74B | -14.28B | -20.56B | -16.26B | -2.21B | -13.63B | -4.24B | -7.73B | -5.31B | -9.18B | -8.15B | -8.77B | -6.67B | -15.02B | 4.12B | 2.81B | -2.57B | -9.32B | -4.97B | -266M | -3.12B | -5.76B | -4.73B | -214M | -2.9B | -2.72B | -4.55B |
| Debt Issued (Net) | 16.59B | 2.72B | 4.39B | -1.94B | -2.58B | -5.67B | 7.07B | -4.96B | 4.18B | 4.1B | 2.06B | 1.96B | 3.32B | -1.33B | -462M | -2.77B | 8.28B | 6.54B | 1.29B | -2.16B | -2.87B | 2.03B | 683M | -278M | 591M | 939M | -946M | -293M | -1.65B |
| Equity Issued (Net) | -6.83B | -9.23B | -8.33B | -8.72B | -10.65B | -3.06B | -2.84B | -5.53B | -2.04B | -5.49B | -1.11B | -6.07B | -6.92B | -2.93B | -91M | -3.43B | 419M | 263M | -473M | -4.6B | 254M | -164M | -1.76B | -306M | -3.23B | -2.25B | -722M | -1.21B | 524.71M |
| Dividends Paid | -9.02B | -7.86B | -7.62B | -7.25B | -7.51B | -7.37B | -6.99B | -6.64B | -6.97B | -6.5B | -6.47B | -6.64B | -6.81B | -6.1B | -6.03B | -5.37B | -4.49B | -3.94B | -3.35B | -2.6B | -2.05B | -2.11B | -1.97B | -1.72B | -1.64B | -1.32B | -1.26B | -1.22B | 0 |
| Share Repurchases | -6.85B | -9.26B | -8.33B | -8.72B | -10.65B | -3.06B | -2.84B | -5.53B | -2.04B | -5.49B | -1.11B | -6.07B | -6.92B | -2.93B | -505M | -3.63B | -311M | -461M | -3.35B | -6.45B | -399M | -231M | -1.82B | -306M | -3.23B | -2.32B | -722M | -1.21B | -15.26M |
| Other Financing | -259.61M | -577.95M | -177M | 3.63B | 181M | -169M | 549M | 3.51B | 581M | 151M | 215M | 1.58B | 2.26B | 1.59B | -92M | -3.51B | -96M | -52M | -50M | 38M | -267M | -31M | 47M | -3.49B | 235M | 2.42B | 1M | -4M | -3.42B |
| Net Change in Cash | 960.07M | -24M | -1.93B | 5.88B | -4.89B | 2.75B | -1.45B | -2.16B | 4.41B | 1.85B | 2.33B | -8.35B | 6.34B | 1.14B | 1.84B | -1.61B | 2.42B | 856M | -3.32B | 1.54B | -2.51B | 238M | 437M | -152M | -2.15B | 1.41B | 1.54B | -233M | -1.25B |
| Free Cash Flow | 15.82B | 17.69B | 13.8B | 11.71B | 12B | 12.52B | 11.06B | 11.37B | 10.92B | 9.88B | 8.6B | 8.05B | 10.19B | 9.4B | 10.89B | 11.92B | 11.84B | 9.46B | 7.45B | 6.08B | 6.39B | 6.53B | 5.28B | 5.11B | 4.64B | 3.62B | 3.82B | 3.47B | 3.15B |
| FCF Margin % | 28.43% | 32.27% | 26.69% | 25.09% | 27.6% | 28.46% | 22.18% | 23.35% | 23.68% | 22.75% | 17.39% | 15.97% | 19.01% | 17.83% | 20.95% | 20.08% | 22.95% | 20.97% | 17.5% | 15.6% | 18.2% | 21.95% | 19.34% | 20.49% | 22.24% | 19.27% | 17.2% | 17.04% | 13.66% |
| FCF Growth % | -5.87% | 28.11% | 17.94% | -2.43% | -4.14% | 13.1% | -2.67% | 4.13% | 10.55% | 14.88% | 6.84% | -21.07% | 8.46% | -13.68% | -8.66% | 0.74% | 25.13% | 26.9% | 22.64% | -4.87% | -2.2% | 23.83% | 3.25% | 10.01% | 28.43% | -5.24% | 9.88% | 10.32% | - |
| FCF per Share | 8.26 | 9.05 | 6.78 | 5.60 | 5.46 | 5.54 | 4.82 | 4.90 | 4.66 | 4.16 | 3.58 | 3.30 | 4.13 | 3.79 | 4.45 | 4.94 | 5.14 | 4.15 | 3.26 | 2.61 | 2.71 | 2.79 | 2.23 | 2.12 | 1.81 | 1.40 | 1.45 | 1.32 | 1.15 |
| FCF Conversion (FCF/Net Income) | 1.24x | 1.37x | 1.48x | 0.97x | 2.05x | 0.63x | 1.69x | 1.16x | 1.13x | 1.64x | 1.71x | 0.67x | 1.36x | 1.44x | 1.53x | 1.60x | 1.44x | 1.45x | 1.19x | 0.77x | 1.21x | 1.32x | 1.25x | 1.40x | 1.23x | 1.16x | 1.04x | 1.04x | 0.98x |
| Interest Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Quick answers to the most common questions about buying NVS stock.
Novartis AG (NVS) generated $19.24B in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Novartis AG (NVS) generated $17.69B in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Novartis AG (NVS) spent $3.92B on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Novartis AG (NVS) returned $7.86B to shareholders via cash dividends and spent $9.26B on share repurchases. This shows the company's commitment to returning capital to its equity investors.
Key Metrics
Top Statement Risk
Revenue growth deceleration
Cash Conversion Remains Strong
Operating cash flow exceeded net income in most quarters, with OCF/NI averaging 1.4 over the past ten quarters, according to reported financials, indicating high earnings quality despite occasional dips.
The OCF/NI ratio has been consistently above 1.0 except for 2025Q4 and 2024Q1, where it fell to 0.94 and 0.84 respectively, suggesting temporary timing effects. The strong conversion implies that reported earnings are well-backed by cash generation, though investors should monitor quarters where the ratio dips below 1.0 as they may signal accrual build-ups.
FCF Margins Show Volatility
Free cash flow margins swung from 9.2% in 2024Q1 to 41.2% in 2025Q2, based on quarterly data, reflecting significant working capital swings and seasonal patterns rather than a stable trend.
The wide range in FCF margins, from 9.2% to 41.2%, indicates that quarterly free cash flow is heavily influenced by working capital movements and one-time items. The most recent quarter (2026Q2) shows a robust 38.6% margin, but this follows a weak 12.3% in 2025Q4, suggesting that investors should focus on annualized figures rather than quarterly noise.
Capital Intensity Remains Low
Capital expenditures averaged only 3.3% of revenue over the last ten quarters, as per financial statements, indicating a low capital intensity typical of a mature pharmaceutical company.
CapEx/Rev has remained consistently below 8% in all quarters, with the highest at 7.6% in 2025Q4. This suggests that Novartis's asset base is not requiring heavy reinvestment, allowing for substantial free cash flow generation. The low capital intensity supports the company's ability to return cash to shareholders while still investing in growth.
Working Capital Swings Dominate
Working capital changes have been highly volatile, ranging from -$2.3B to +$1.3B quarterly, according to reported cash flow data, causing significant quarter-to-quarter fluctuations in operating cash flow.
The large swings in working capital, particularly in Q1 quarters (e.g., -$2.0B in 2024Q1 and -$1.8B in 2025Q1), suggest seasonal patterns such as inventory builds or receivable collections. These swings are a primary driver of the variability in operating cash flow and FCF, and investors should expect continued volatility in quarterly figures.
Capital Returns and M&A Activity
Dividends and buybacks totaled over $4B in most quarters, while acquisitions consumed up to $12B in 2026Q1, based on reported cash flows, indicating a balanced but aggressive capital deployment strategy.
The company consistently returns capital to shareholders through dividends and buybacks, with combined outflows often exceeding $4B per quarter. However, the $12B acquisition in 2026Q1 stands out as a major deployment, suggesting a strategic pivot towards inorganic growth. This heavy deployment may pressure future cash balances if not offset by strong operating cash flow.
Cumulative Cash Exceeds Earnings
Over the last ten quarters, cumulative operating cash flow of $46.5B surpassed cumulative net income of $32.3B, according to reported figures, indicating strong cash generation relative to accounting earnings.
The cumulative OCF/NI ratio of 1.44 over the period suggests that earnings are of high quality, with cash flows consistently exceeding net income. This divergence may be due to non-cash charges like D&A and favorable working capital management, reinforcing the view that Novartis's earnings are well-supported by cash.
SBC and Acquisition Distortions
Stock-based compensation averaged $260M per quarter, but was zero in 2026Q2 and 2025Q4, as per cash flow data, while large acquisitions in 2026Q1 obscure underlying cash generation.
The absence of SBC in two quarters is unusual and may indicate a change in reporting or a one-time adjustment, warranting further investigation. Additionally, the $12B acquisition in 2026Q1 significantly reduced reported FCF, but this is a discretionary investment rather than a reflection of operational performance. Investors should adjust for these items to assess true cash-generating ability.