Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue declined from the prior quarter and the year-ago quarter, while operating cash flow improved relative to both periods. Free cash flow margin weakened compared to a year ago but strengthened versus the prior quarter.
- Operating cash flow as a proportion of revenue increased compared to both the prior quarter and the year-ago quarter, supporting free cash flow despite higher capital expenditure. The free cash flow margin rose from the prior quarter but fell from the same quarter last year.
- Compared to the prior quarter, revenue was lower and capital expenditure was higher, yet operating cash flow improved, leading to a slightly lower free cash flow but a higher free cash flow margin. Versus the year-ago quarter, revenue was lower, capital expenditure was significantly higher, and free cash flow was lower, with a weakened free cash flow margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$5.7B
Trailing twelve-month free cash flow.
Quarter free cash flow
$2.0B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$2.8B
Cash generated by operations before capital spending.
CapEx
$785.0M
Capital spending and related asset purchases.
FCF margin
30.0%
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 |
|---|---|---|---|---|---|
| 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% |
| 2025-10-26 | $6.8B | $2.8B | $785.0M | $2.0B | 30.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 107.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 11.5% | Lower capital intensity usually supports FCF margin. |
| Net cash | $786.0M | 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 improvement
Operating cash flow rose compared to both the prior quarter and the year-ago quarter, despite lower revenue. This improvement was the strongest observable driver supporting free cash flow.
Higher operating cash flow partially offset the drag from increased capital expenditure on free cash flow.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow as a proportion of revenue increased compared to both the prior quarter and the year-ago quarter, supporting free cash flow despite higher capital expenditure. The free cash flow margin rose from the prior quarter but fell from the same quarter last year.
Compared to the prior quarter, revenue was lower and capital expenditure was higher, yet operating cash flow improved, leading to a slightly lower free cash flow but a higher free cash flow margin. Versus the year-ago quarter, revenue was lower, capital expenditure was significantly higher, and free cash flow was lower, with a weakened free cash flow margin.
Monitor the trend in capital expenditure, which increased notably from both the prior quarter and the year-ago quarter.