Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and operating cash flow increased from both the prior quarter and the same quarter last year. The free cash flow margin improved compared to both periods.
- Operating cash flow was higher than capital expenditure, resulting in positive free cash flow. The free cash flow margin was higher than the operating cash flow margin as a share of revenue, reflecting the relatively low level of capital expenditure.
- Compared to the immediately preceding quarter, revenue was stable, while operating cash flow and free cash flow were higher, leading to an improved free cash flow margin. Versus the same quarter one year earlier, revenue, operating cash flow, and free cash flow were all higher, with a strengthened free cash flow margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$22.7B
Trailing twelve-month free cash flow.
Quarter free cash flow
$6.4B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$6.6B
Cash generated by operations before capital spending.
CapEx
$144.0M
Capital spending and related asset purchases.
FCF margin
42.7%
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 |
|---|---|---|---|---|---|
| 2024-08-04 | $13.1B | $5.0B | $172.0M | $4.8B | 36.7% |
| 2024-11-03 | $14.1B | $5.6B | $122.0M | $5.5B | 39.0% |
| 2025-02-02 | $14.9B | $6.1B | $100.0M | $6.0B | 40.3% |
| 2025-05-04 | $15.0B | $6.6B | $144.0M | $6.4B | 42.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 129.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.0% | 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 Growth
Operating cash flow increased from both the prior quarter and the year-ago period, supporting free cash flow expansion. The free cash flow margin improved sequentially and year-over-year.
The higher operating cash flow strengthened the company's cash generation capacity in the current 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 capital expenditure, resulting in positive free cash flow. The free cash flow margin was higher than the operating cash flow margin as a share of revenue, reflecting the relatively low level of capital expenditure.
Compared to the immediately preceding quarter, revenue was stable, while operating cash flow and free cash flow were higher, leading to an improved free cash flow margin. Versus the same quarter one year earlier, revenue, operating cash flow, and free cash flow were all higher, with a strengthened free cash flow margin.
Monitor the trend in capital expenditure relative to operating cash flow, as any material change could affect free cash flow conversion.