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.

Advanced Micro Devices Inc., consolidated cash flow statement

US$ in millions

12 months ended:	Dec 27, 2025	Dec 28, 2024	Dec 30, 2023	Dec 31, 2022	Dec 25, 2021
Net income	4,335)	1,641)	854)	1,320)	3,162)
Income from discontinued operations, net of tax	(66)	—)	—)	—)	—)
Depreciation and amortization	750)	671)	642)	626)	407)
Amortization of acquisition-related intangibles	2,254)	2,393)	2,811)	3,548)	—)
Stock-based compensation	1,638)	1,407)	1,384)	1,081)	379)
Gains on long-term investments, net	(341)	—)	(1)	—)	—)
Loss on debt redemption, repurchase and conversion	—)	—)	—)	—)	7)
Deferred income taxes	248)	(1,163)	(1,019)	(1,505)	308)
Inventory loss at (recovery from) contract manufacturer	(67)	65)	—)	—)	—)
Other	120)	125)	45)	341)	32)
Accounts receivable, net	(121)	(1,865)	(1,339)	(1,091)	(640)
Inventories	(2,189)	(1,458)	(580)	(1,401)	(556)
Prepaid expenses and other assets	(11)	339)	(390)	(1,197)	(920)
Accounts payable	410)	3)	(519)	1,297)	816)
Accrued and other liabilities	(467)	883)	(221)	546)	526)
Changes in operating assets and liabilities	(2,378)	(2,098)	(3,049)	(1,846)	(774)
Adjustments to reconcile net income to net cash provided by operating activities	2,224)	1,400)	813)	2,245)	359)
Net cash provided by operating activities	6,493)	3,041)	1,667)	3,565)	3,521)
Purchases of property and equipment	(974)	(636)	(546)	(450)	(301)
Purchases of short-term investments	(5,470)	(1,493)	(3,722)	(2,667)	(2,056)
Proceeds from maturity of short-term investments	1,765)	1,416)	2,687)	4,310)	1,678)
Proceeds from sale of short-term investments	80)	616)	300)	—)	—)
Cash received from acquisition of Xilinx	—)	—)	—)	2,366)	—)
Acquisitions, net of cash acquired	(1,760)	(548)	(131)	(1,544)	—)
Related party loan and equity method investment	—)	(117)	—)	—)	—)
Purchases of long-term investments	(502)	(341)	(11)	(5)	—)
Other	10)	2)	—)	(11)	(7)
Net cash (used in) provided by investing activities	(6,851)	(1,101)	(1,423)	1,999)	(686)
Proceeds from debt and commercial paper issuance, net of issuance costs	2,441)	—)	—)	991)	—)
Repayment of debt and commercial paper	(950)	(750)	—)	(312)	—)
Proceeds from sales of common stock through employee equity plans	285)	279)	268)	167)	104)
Repurchases of common stock	(1,316)	(862)	(985)	(3,702)	(1,762)
Stock repurchases for tax withholding on employee equity plans	(607)	(728)	(427)	(406)	(237)
Settlement of contingent consideration liability	(284)	—)	—)	—)	—)
Other	—)	(1)	(2)	(2)	—)
Net cash used in financing activities	(431)	(2,062)	(1,146)	(3,264)	(1,895)
Net cash provided by operating activities of discontinued operations	1,216)	—)	—)	—)	—)
Net cash provided by investing activities of discontinued operations	1,318)	—)	—)	—)	—)
Net cash provided by discontinued operations	2,534)	—)	—)	—)	—)
Net increase (decrease) in cash, cash equivalents and restricted cash	1,745)	(122)	(902)	2,300)	940)
Cash, cash equivalents and restricted cash at beginning of year	3,811)	3,933)	4,835)	2,535)	1,595)
Cash, cash equivalents and restricted cash at end of year	5,556)	3,811)	3,933)	4,835)	2,535)

Based on: 10-K (reporting date: 2025-12-27), 10-K (reporting date: 2024-12-28), 10-K (reporting date: 2023-12-30), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-25).

The cash flow statement reveals a fluctuating financial performance over the five-year period. While net cash provided by operating activities generally increased, significant variations occurred in investing and financing activities, impacting overall cash position.

Operating Activities: Net cash provided by operating activities demonstrated an overall positive trend, increasing from US$3,521 million in 2021 to US$6,493 million in 2025. However, a notable decrease was observed in 2023, falling to US$1,667 million, before recovering strongly in subsequent years. This volatility is linked to changes in net income, alongside adjustments for non-cash items and working capital fluctuations. Specifically, accounts receivable and inventories consistently represented cash outflows, increasing in magnitude over time, while accounts payable and accrued liabilities provided cash inflows, though with some variability.
Investing Activities: Investing activities exhibited substantial year-to-year changes. 2022 saw a significant net cash inflow of US$1,999 million, largely attributable to proceeds from the maturity and sale of short-term investments and cash received from the Xilinx acquisition. However, subsequent years experienced net cash outflows, with 2025 showing a particularly large outflow of US$6,851 million, driven by increased purchases of short-term investments and acquisitions. Purchases of property and equipment remained consistently negative, indicating ongoing capital expenditure. The amortization of acquisition-related intangibles, a significant non-cash expense, peaked in 2022 at US$3,548 million and gradually decreased over the period.
Financing Activities: Financing activities consistently resulted in net cash outflows throughout the period. Repurchases of common stock and stock repurchases for tax withholding on employee equity plans were the primary drivers of these outflows, totaling billions of dollars annually. Proceeds from debt issuance provided some offset in 2022 and 2025, but were insufficient to counteract the stock repurchase programs. A settlement of contingent consideration liability contributed to outflows in 2025.
Net Cash and Cash Position: The net increase (decrease) in cash, cash equivalents, and restricted cash varied considerably. A substantial increase was recorded in 2021 and 2022, followed by a decrease in 2023. 2025 showed a positive increase again. Consequently, the cash balance at the end of each year fluctuated, ultimately reaching US$5,556 million in 2025, representing an increase from the US$2,535 million balance at the beginning of the period. The inclusion of cash flows from discontinued operations in 2025 significantly boosted the net increase in cash.
Key Observations: The company’s cash flow is heavily influenced by its investment and financing decisions, particularly regarding acquisitions, short-term investments, and stock repurchases. While operating activities generally generate positive cash flow, the substantial outflows from investing and financing activities create volatility in the overall cash position. The significant increase in net income in 2025, coupled with cash flows from discontinued operations, contributed to a strong ending cash balance.

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Advanced Micro Devices Inc. (NASDAQ:AMD)

Cash Flow Statement