Free cash flow margin volatility remains a concern, fluctuating between 9.2% and 41.7% over the last ten quarters, complicating consistent capital deployment.
| 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 | 19.16B | 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 % | -4.17% | 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 | 13.53B | 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 | 5.4B | 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 | 838M | 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 | 1.46B | -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 | -745.32M | 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 | -1.3B | -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 | -584.15M | -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 | -115.08M | 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 | -152.99M | -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 | -16.95B | -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 | -2.05B | -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 | 3.65% | 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 | -15.05B | -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 | -1.02B | 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 | -2.71B | -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) | 14.62B | 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) | -8.36B | -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 | -8.64B | -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 | -8.37B | -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 | -320.31M | -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 | -188.95M | -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 | 16.36B | 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 % | 29.18% | 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 % | 10.18% | 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 | 8.54 | 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) | 1.21x | 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 |
U.S. drug pricing legislation
According to recent financial disclosures, the OCF/NI ratio has exhibited significant volatility, ranging from a low of 0.30 in 2023Q4 to a high of 1.97 in 2024Q3, suggesting that reported net income frequently diverges from the actual cash-generating capacity of the underlying innovative medicines business.
The wide variance in the conversion ratio indicates that headline earnings are heavily impacted by non-cash items and restructuring charges associated with the Sandoz separation. Investors should monitor this gap, as it implies that accounting net income may not be a reliable proxy for the company's immediate liquidity or its ability to fund ongoing R&D requirements.
As reported in quarterly filings, FCF margins have fluctuated between 9.2% and 41.7% over the last ten quarters, reflecting a lack of consistent cash flow generation that complicates the company's ability to maintain its dividend and share repurchase programs without relying on balance sheet flexibility.
The sharp contraction in FCF margins during periods of high acquisition activity suggests that the company's cash flow trajectory is highly sensitive to capital allocation decisions rather than purely operational performance. This inconsistency warrants further investigation into whether the current cost structure can support long-term shareholder returns amidst revenue headwinds.
Based on the provided cash flow statements, working capital changes have been highly erratic, swinging from a $2.3B outflow in 2025Q4 to a $1.3B inflow in 2025Q3, which indicates significant instability in the company's ability to manage its receivables and inventory cycles effectively.
These dramatic swings in working capital suggest that the company may be experiencing difficulty in aligning its supply chain logistics with the timing of revenue recognition. Such volatility often points to underlying operational friction, which could potentially mask deeper issues in the collection of payments or the management of inventory levels.
As indicated by the cash flow data, the company has aggressively deployed capital through significant acquisitions, such as the $12.0B net outflow in 2026Q1, while simultaneously maintaining substantial dividend payments, which may indicate a strategy of buying growth to offset the impending patent cliff.
The high level of acquisition spending relative to free cash flow suggests that the company is prioritizing inorganic growth to replenish its pipeline. Investors should monitor whether these high-priced acquisitions will generate sufficient returns to justify the current capital allocation strategy, especially given the potential for margin compression from U.S. pricing pressures.
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.