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Large technology companies generate lots of revenue and cash flow.
Most return some of their massive cash flows to shareholders via dividends and repurchases.
Many also have large and growing cash balances.
The technology sector can be a very profitable industry. Many tech companies generate reliable recurring revenues by selling their software to customers on a subscription basis. Others benefit from durable and growing demand for their products as customers routinely need to upgrade to the latest model.
Here are five tech titans that are money-printing machines.
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Image source: Getty Images.
Apple (NASDAQ: AAPL) has built an amazing ecosystem of consumer products and related services. It sold a staggering $167 billion of iPhones, iPads, Macs, and other technology products during the first half of the year. It booked another $53 billion in revenue from subscription services like Apple TV+, iCloud, and Apple Music.
After expenses, Apple generated $24 billion in operating cash flow during the second quarter alone. It utilized that robust cash flow and its cash-rich balance sheet (over $132 billion in cash, cash equivalents, and marketable securities) to return $29 billion to its shareholders in the quarter via dividends and share repurchases. It recently hiked its dividend by 4% and launched an additional $100 billion share repurchase program.
Alphabet (NASDAQ: GOOG)(NASDAQ: GOOGL) generates massive revenues from online advertising on its Google Search platform and YouTube. It also generates subscription revenue (e.g., Google One), sells devices (e.g., Nest), and has a booming cloud infrastructure business. During the first quarter, Alphabet's businesses generated over $90 billion in revenue.
The tech giant produced nearly $19 billion in free cash flow during the first quarter and almost $75 billion over the last 12 months. It paid out $1.2 billion of that money in dividends and repurchased over $15 billion in stock during the first quarter. With it producing more excess cash than it returned to shareholders, the amount of cash, cash equivalents, and marketable securities on its balance sheet rose to nearly $134 billion. Alphabet recently boosted its dividend payment by 5% and authorized an additional $70 billion share repurchase program.
Microsoft (NASDAQ: MSFT) has an increasingly diverse business that generates massive revenues and cash flows. It booked more than $70 billion in revenue during its fiscal 2025 third quarter from sources such as Azure cloud, Xbox, LinkedIn, Windows, and AI services.
The tech titan has generated nearly $94 billion in net cash from operating activities through the first nine months of its fiscal 2025. It has paid out about $18 billion in dividends and repurchased almost $14 billion of its stock. Even with those hefty cash returns, Microsoft ended the period with almost $80 billion of cash, cash equivalents, and short-term investments on its balance sheet. That supports its ability to continue returning lots of money to shareholders. Microsoft boosted its dividend by 10% last fall and approved a new $60 billion share repurchase program.
Meta Platforms (NASDAQ: META) generates massive revenues from advertising on its social media platforms. During the first quarter, it booked more than $41 billion of advertising revenue. It also generated an additional $510 million in other revenue from its "Family of Apps" segment and $412 million in revenue from its Reality Labs segment, which encompasses its virtual reality, augmented reality, and AI platforms.
The social media giant's business generated more than $10 billion of free cash flow during the first quarter. It returned almost $15 billion in cash to shareholders during the period through stock repurchases ($13.4 billion) and dividend payments ($1.3 billion). Even with that robust cash return, Meta ended the period with a whopping $70 billion of cash, cash equivalents, and marketable securities on its balance sheet.
Nvidia (NASDAQ: NVDA) produces prodigious cash flows by developing and selling graphics processing units (GPUs), many of which are being deployed to support AI applications. It generated $44.1 billion in revenue during the first quarter, an impressive 69% increase compared to the same period last year. The big driver was sales to data center customers, which surged by 73% to $39.1 billion.
The AI semiconductor giant generated over $27 billion in cash flow from operations during the first quarter, a 79% increase compared to the same period last year. It returned $14.3 billion to shareholders through stock repurchases ($14.1 billion) and dividends ($244 million). With its free cash flow far outpacing its cash returns, Nvidia's cash balance ballooned to $53.7 billion. That will allow it to continue returning more cash to shareholders. It gave investors a massive 150% dividend hike last year and boosted its stock repurchase program by a whopping $50 billion.
These large technology companies have become money printers. They generate mounds of recurring revenue from subscriptions, advertising, and rising demand for their products and services. That enables them to return prodigious amounts of cash to shareholders through growing dividends and meaningful share repurchase programs.
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Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Matt DiLallo has positions in Alphabet, Apple, and Meta Platforms and has the following options: short August 2025 $250 calls on Apple. The Motley Fool has positions in and recommends Alphabet, Apple, Meta Platforms, Microsoft, and Nvidia. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.
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