Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue increased compared to both the prior quarter and the same quarter last year, but free cash flow and its margin weakened substantially due to a sharp decline in operating cash flow. Capital expenditure remained relatively stable, while operating cash flow fell to a level that was lower than both comparison periods.
- The conversion of revenue into operating cash flow weakened considerably, as operating cash flow was lower despite higher revenue. Combined with capital expenditure that was similar to the prior quarter, free cash flow and its margin contracted sharply.
- Compared to the immediately preceding quarter, revenue was higher but operating cash flow was lower, leading to a much lower free cash flow and margin. Versus the same quarter one year earlier, revenue was higher but operating cash flow was lower, and capital expenditure was higher, resulting in a lower free cash flow and margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$5.3B
Trailing twelve-month free cash flow.
Quarter free cash flow
$210.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$845.0M
Cash generated by operations before capital spending.
CapEx
$635.0M
Capital spending and related asset purchases.
FCF margin
2.7%
The share of revenue converted into free cash flow.
TTM FCF yield
1.1%
TTM FCF divided by market capitalization.
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 |
|---|---|---|---|---|---|
| 2025-07-27 | $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% |
| 2026-04-26 | $7.9B | $845.0M | $635.0M | $210.0M | 2.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 7.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 8.0% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$154.0M | 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 decline
Operating cash flow decreased sharply from both the prior quarter and the year-ago quarter, despite higher revenue. This drove the substantial reduction in free cash flow and margin.
If operating cash flow does not recover, free cash flow generation will remain constrained.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
The conversion of revenue into operating cash flow weakened considerably, as operating cash flow was lower despite higher revenue. Combined with capital expenditure that was similar to the prior quarter, free cash flow and its margin contracted sharply.
Compared to the immediately preceding quarter, revenue was higher but operating cash flow was lower, leading to a much lower free cash flow and margin. Versus the same quarter one year earlier, revenue was higher but operating cash flow was lower, and capital expenditure was higher, resulting in a lower free cash flow and margin.
Monitor the trajectory of operating cash flow relative to revenue, as the current quarter's conversion rate was significantly lower than recent quarters.
Valuation context
A cash-flow page should show how much investors are paying for the cash stream, without turning into a full DCF.
| Market capitalization | $473.0B | Used as the denominator for FCF yield. |
| TTM FCF yield | 1.1% | TTM free cash flow divided by market capitalization. |
| EV / TTM FCF | 88.5x | A quick valuation bridge, not a full DCF. |
Peer context
Free cash flow quality is easier to read against related public companies.