Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue, operating cash flow, and free cash flow all improved compared to the prior quarter, while free cash flow margin strengthened. Versus the same quarter last year, revenue and operating cash flow were higher, but free cash flow was stable and the margin was lower due to higher capital expenditure.
- Revenue increased from the prior quarter, and operating cash flow rose more sharply, leading to a higher free cash flow margin. Capital expenditure also increased, but the growth in operating cash flow more than offset this, resulting in improved cash conversion.
- Compared to the immediately preceding quarter, revenue, operating cash flow, free cash flow, and free cash flow margin all improved. Versus the same quarter one year earlier, revenue and operating cash flow were higher, while free cash flow was stable and free cash flow margin was lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$5.8B
Trailing twelve-month free cash flow.
Quarter free cash flow
$2.0B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$2.6B
Cash generated by operations before capital spending.
CapEx
$584.0M
Capital spending and related asset purchases.
FCF margin
28.1%
The share of revenue converted into free cash flow.
Cash flow trend
A short quarterly history shows whether FCF is scaling with revenue or only spiking for one period.
| Period | Revenue | Operating CF | CapEx | FCF | FCF margin |
|---|---|---|---|---|---|
| 2024-10-27 | $7.0B | $2.6B | $407.0M | $2.2B | 30.8% |
| 2025-01-26 | $7.2B | $925.0M | $381.0M | $544.0M | 7.6% |
| 2025-04-27 | $7.1B | $1.6B | $510.0M | $1.1B | 14.9% |
| 2025-07-27 | $7.3B | $2.6B | $584.0M | $2.0B | 28.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 115.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 8.0% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$779.0M | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Operating Cash Flow Growth
Operating cash flow increased substantially from the prior quarter, driving a higher free cash flow despite a rise in capital expenditure. This was the strongest observable factor in the quarter's cash generation.
The improvement in operating cash flow was the primary reason free cash flow and its margin strengthened sequentially.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue increased from the prior quarter, and operating cash flow rose more sharply, leading to a higher free cash flow margin. Capital expenditure also increased, but the growth in operating cash flow more than offset this, resulting in improved cash conversion.
Compared to the immediately preceding quarter, revenue, operating cash flow, free cash flow, and free cash flow margin all improved. Versus the same quarter one year earlier, revenue and operating cash flow were higher, while free cash flow was stable and free cash flow margin was lower.
Monitor capital expenditure, which increased versus both the prior quarter and the year-ago quarter, as it directly impacts free cash flow conversion.