Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and operating cash flow both increased, driving a higher free cash flow margin compared with the prior quarter and the same quarter last year. Capital expenditure remained stable, supporting the conversion of operating cash flow into free cash flow.
- Revenue rose, and operating cash flow as a proportion of revenue improved, lifting the free cash flow margin. Capital expenditure was essentially unchanged from the preceding quarter and lower than a year earlier, which aided the conversion of operating cash flow into free cash flow.
- Compared with the immediately preceding quarter, revenue, operating cash flow, and free cash flow were all higher, and the free cash flow margin improved. Versus the same quarter one year ago, all metrics were higher, and the margin strengthened.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$24.9B
Trailing twelve-month free cash flow.
Quarter free cash flow
$7.0B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$7.2B
Cash generated by operations before capital spending.
CapEx
$142.0M
Capital spending and related asset purchases.
FCF margin
44.0%
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 |
|---|---|---|---|---|---|
| 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% |
| 2025-08-03 | $16.0B | $7.2B | $142.0M | $7.0B | 44.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 169.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.9% | 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 Improvement
Operating cash flow increased relative to both the prior quarter and the same quarter a year ago, contributing to a higher free cash flow margin. The increase in operating cash flow outpaced the rise in revenue, indicating improved cash conversion efficiency.
This stronger cash generation provides a solid foundation for the company's free cash flow and financial flexibility.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue rose, and operating cash flow as a proportion of revenue improved, lifting the free cash flow margin. Capital expenditure was essentially unchanged from the preceding quarter and lower than a year earlier, which aided the conversion of operating cash flow into free cash flow.
Compared with the immediately preceding quarter, revenue, operating cash flow, and free cash flow were all higher, and the free cash flow margin improved. Versus the same quarter one year ago, all metrics were higher, and the margin strengthened.
Monitor the company's principal debt obligations and capital allocation priorities, as described in the liquidity discussion, which could influence future free cash flow generation.