Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Broadcom's free cash flow for the current quarter was higher than both the prior quarter and the same quarter last year, supported by a higher operating cash flow and a slightly improved free cash flow margin. Revenue and capital expenditure also increased, while the cash conversion remained strong.
- Revenue was higher, driving a higher operating cash flow. Capital expenditure increased, but free cash flow still rose, resulting in a free cash flow margin that was slightly improved compared to both the prior quarter and the same quarter last year.
- Compared to the prior quarter, revenue, operating cash flow, capital expenditure, free cash flow, and free cash flow margin were all higher. Versus the same quarter one year ago, all metrics were also higher, with the most notable increase in free cash flow.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$28.9B
Trailing twelve-month free cash flow.
Quarter free cash flow
$8.0B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$8.3B
Cash generated by operations before capital spending.
CapEx
$250.0M
Capital spending and related asset purchases.
FCF margin
41.5%
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 |
|---|---|---|---|---|---|
| 2025-05-04 | $15.0B | $6.6B | $144.0M | $6.4B | 42.7% |
| 2025-08-03 | $16.0B | $7.2B | $142.0M | $7.0B | 44.0% |
| 2025-11-02 | $18.0B | $7.7B | $237.0M | $7.5B | 41.4% |
| 2026-02-01 | $19.3B | $8.3B | $250.0M | $8.0B | 41.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 109.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.3% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$51.9B | 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 Strength
Operating cash flow was higher than in the prior quarter and the same quarter last year, reflecting the increase in revenue. The growth in operating cash flow outpaced the rise in capital expenditure, leading to a higher free cash flow.
This supported an improved free cash flow margin and a larger absolute free cash flow relative to historical periods.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was higher, driving a higher operating cash flow. Capital expenditure increased, but free cash flow still rose, resulting in a free cash flow margin that was slightly improved compared to both the prior quarter and the same quarter last year.
Compared to the prior quarter, revenue, operating cash flow, capital expenditure, free cash flow, and free cash flow margin were all higher. Versus the same quarter one year ago, all metrics were also higher, with the most notable increase in free cash flow.
Monitor the trend in capital expenditure, which was higher in the current quarter relative to both the prior quarter and the year-ago period.