Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was slightly higher than the prior quarter but lower than the same quarter last year. Free cash flow margin improved compared to a year ago but weakened from the preceding quarter.
- Operating cash flow was higher than a year earlier but lower than the prior quarter. Capital expenditure was lower than the prior quarter but higher than a year ago, resulting in free cash flow that was higher year over year but lower sequentially.
- Compared to the prior quarter, revenue was slightly higher while operating cash flow and free cash flow were lower, causing free cash flow margin to weaken. Compared to the same quarter last year, revenue was slightly lower but operating cash flow and free cash flow were higher, leading to an improved free cash flow margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$6.2B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.0B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.7B
Cash generated by operations before capital spending.
CapEx
$646.0M
Capital spending and related asset purchases.
FCF margin
14.8%
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 |
|---|---|---|---|---|---|
| 2025-04-27 | $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% |
| 2026-01-25 | $7.0B | $1.7B | $646.0M | $1.0B | 14.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 51.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 9.2% | Lower capital intensity usually supports FCF margin. |
| Net cash | n/a | 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 Volatility
Operating cash flow was substantially higher than a year ago but notably lower than the prior quarter, while revenue remained relatively stable across periods. This shift in cash conversion efficiency is the strongest observable driver of the quarter's free cash flow performance.
The sequential decline in operating cash flow reduced free cash flow and margin compared to the prior quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was higher than a year earlier but lower than the prior quarter. Capital expenditure was lower than the prior quarter but higher than a year ago, resulting in free cash flow that was higher year over year but lower sequentially.
Compared to the prior quarter, revenue was slightly higher while operating cash flow and free cash flow were lower, causing free cash flow margin to weaken. Compared to the same quarter last year, revenue was slightly lower but operating cash flow and free cash flow were higher, leading to an improved free cash flow margin.
Monitor the relationship between operating cash flow and revenue, as operating cash flow declined sequentially despite a slight revenue increase.