Cash Flow Statement

The cash flow statement provides information about a company cash receipts and cash payments during an accounting period, showing how these cash flows link the ending cash balance to the beginning balance shown on the company balance sheet.

The cash flow statement consists of three parts: cash flows provided by (used in) operating activities, cash flows provided by (used in) investing activities, and cash flows provided by (used in) financing activities.

NVIDIA Corp., consolidated cash flow statement

US$ in millions

12 months ended:	Jan 25, 2026	Jan 26, 2025	Jan 28, 2024	Jan 29, 2023	Jan 30, 2022	Jan 31, 2021
Net income	120,067)	72,880)	29,760)	4,368)	9,752)	4,332)
Stock-based compensation expense	6,386)	4,737)	3,549)	2,709)	2,004)	1,397)
Depreciation and amortization	2,843)	1,864)	1,508)	1,544)	1,174)	1,098)
(Gains) losses on non-marketable equity securities and publicly-held equity securities, net	(8,918)	(1,030)	(238)	45)	(100)	—)
Deferred income taxes	(1,424)	(4,477)	(2,489)	(2,164)	(406)	(282)
Acquisition termination cost	—)	—)	—)	1,353)	—)	—)
Other	(287)	(502)	(278)	(7)	47)	(20)
Accounts receivable	(15,399)	(13,063)	(6,172)	822)	(2,215)	(550)
Inventories	(11,324)	(4,781)	(98)	(2,554)	(774)	(524)
Prepaid expenses and other assets	577)	(395)	(1,522)	(1,517)	(1,715)	(394)
Accounts payable	3,096)	3,357)	1,531)	(551)	568)	363)
Accrued and other current liabilities	5,257)	4,278)	2,025)	1,341)	581)	239)
Other long-term liabilities	1,844)	1,221)	514)	252)	192)	163)
Changes in operating assets and liabilities, net of acquisitions	(15,949)	(9,383)	(3,722)	(2,207)	(3,363)	(703)
Adjustments to reconcile net income to net cash provided by operating activities	(17,349)	(8,791)	(1,670)	1,273)	(644)	1,490)
Net cash provided by operating activities	102,718)	64,089)	28,090)	5,641)	9,108)	5,822)
Proceeds from sales of marketable securities	15,157)	495)	50)	1,806)	1,023)	527)
Proceeds from maturities of marketable securities	11,226)	11,195)	9,732)	19,425)	15,197)	8,792)
Proceeds from sales of non-marketable equity securities	84)	171)	1)	8)	—)	—)
Purchases of marketable securities	(40,616)	(26,575)	(18,211)	(11,897)	(24,787)	(19,308)
Purchases of non-marketable equity securities	(17,502)	(1,486)	(862)	(85)	—)	—)
Groq, Inc.	(13,000)	—)	—)	—)	—)	—)
Purchases related to property and equipment and intangible assets	(6,042)	(3,236)	(1,069)	(1,833)	(976)	(1,128)
Acquisitions, net of cash acquired	(1,535)	(1,007)	(83)	(49)	(263)	(8,524)
Other	—)	22)	(124)	—)	(24)	(34)
Net cash (used in) provided by investing activities	(52,228)	(20,421)	(10,566)	7,375)	(9,830)	(19,675)
Proceeds related to employee stock plans	644)	490)	403)	355)	281)	194)
Payments related to repurchases of common stock	(40,086)	(33,706)	(9,533)	(10,039)	—)	—)
Payments related to employee stock plan taxes	(7,948)	(6,930)	(2,783)	(1,475)	(1,904)	(942)
Dividends paid	(974)	(834)	(395)	(398)	(399)	(395)
Principal payments on property and equipment and intangible assets	(101)	(129)	(74)	(58)	(83)	(17)
Repayment of debt	—)	(1,250)	(1,250)	—)	(1,000)	—)
Issuance of debt, net of issuance costs	—)	—)	—)	—)	4,977)	4,968)
Other	(9)	—)	(1)	(2)	(7)	(4)
Net cash provided by (used in) financing activities	(48,474)	(42,359)	(13,633)	(11,617)	1,865)	3,804)
Change in cash and cash equivalents	2,016)	1,309)	3,891)	1,399)	1,143)	(10,049)
Cash and cash equivalents at beginning of period	8,589)	7,280)	3,389)	1,990)	847)	10,896)
Cash and cash equivalents at end of period	10,605)	8,589)	7,280)	3,389)	1,990)	847)

Based on: 10-K (reporting date: 2026-01-25), 10-K (reporting date: 2025-01-26), 10-K (reporting date: 2024-01-28), 10-K (reporting date: 2023-01-29), 10-K (reporting date: 2022-01-30), 10-K (reporting date: 2021-01-31).

The company demonstrates a significant increase in net income over the observed period, growing from US$4.332 billion in 2021 to US$120.067 billion in 2026. However, this growth is not consistently reflected in operating cash flow, particularly in later years. A detailed examination of the cash flow statement reveals evolving patterns in operating, investing, and financing activities.

Operating Activities: Net cash provided by operating activities generally increased alongside net income, peaking at US$102.718 billion in 2026. However, adjustments to reconcile net income to net cash provided by operating activities show a substantial negative trend, beginning in 2023. This is primarily driven by increasing changes in operating assets and liabilities, net of acquisitions, which become significantly negative. Accounts receivable and inventories show consistent increases in negative values, indicating increasing use of cash in these areas. Stock-based compensation and depreciation & amortization consistently contribute positive cash flow, but are dwarfed by the negative adjustments.
Investing Activities: Investing activities exhibit considerable volatility. While proceeds from sales and maturities of marketable securities are substantial, particularly in the earlier years, purchases of marketable securities consistently represent a significant cash outflow. Purchases related to property, equipment, and intangible assets also contribute to cash outflow, increasing over time. A large cash outflow related to Groq, Inc. appears in 2026, totaling US$13 billion. Acquisitions, net of cash acquired, also represent a consistent, though smaller, cash outflow. Overall, net cash used in investing activities is substantial, and increases significantly in the later years.
Financing Activities: Financing activities demonstrate a shift from positive to significantly negative cash flow. Initial years show positive cash flow from proceeds related to employee stock plans and issuance of debt. However, payments related to repurchases of common stock and employee stock plan taxes become dominant outflows, increasing substantially over time. Dividend payments also contribute to cash outflow. The net effect is a substantial and growing negative cash flow from financing activities, reaching US$48.474 billion in 2026.
Cash Position: Despite the significant growth in net income, the change in cash and cash equivalents is relatively modest, particularly when compared to the scale of the company’s earnings. While there is an initial decrease in cash in 2021, it recovers and shows positive changes in subsequent years, though these are significantly smaller than the net income generated. The company maintains a healthy cash balance, increasing from US$847 million in 2021 to US$10.605 billion in 2026.
Non-Recurring Items: Gains/losses on securities and deferred income taxes show fluctuations. Losses on securities become increasingly negative in later years, while deferred income taxes consistently represent a cash outflow, growing in magnitude over time. An acquisition termination cost of US$1.353 billion is recorded in 2023, representing a one-time event. Other items show relatively small and inconsistent impacts on cash flow.

In summary, while the company exhibits strong net income growth, its cash flow statement reveals a complex picture. Increasing negative adjustments to net income in operating activities, substantial cash outflows from investing activities (particularly marketable securities and acquisitions), and significant cash outflows from financing activities (driven by stock repurchases and employee stock plans) are key trends. These factors, while not preventing overall cash balance growth, suggest a strategic allocation of capital that differs from a simple conversion of net income to cash.

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NVIDIA Corp. (NASDAQ:NVDA)

Cash Flow Statement