Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved compared to both the prior quarter and the same quarter last year, supported by higher revenue and operating cash flow. The free cash flow margin also strengthened, reflecting efficient cash generation.
- Revenue increased substantially, leading to a higher operating cash flow. Capital expenditure was lower than the prior quarter, further boosting free cash flow, and the free cash flow margin rose, indicating improved cash conversion efficiency.
- Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow all increased, while capital expenditure decreased. The free cash flow margin was higher than both the prior quarter and the same quarter one year earlier.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$32.8B
Trailing twelve-month free cash flow.
Quarter free cash flow
$10.3B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$10.5B
Cash generated by operations before capital spending.
CapEx
$231.0M
Capital spending and related asset purchases.
FCF margin
46.3%
The share of revenue converted into free cash flow.
TTM FCF yield
1.7%
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 |
|---|---|---|---|---|---|
| 2025-08-03 | $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% |
| 2026-05-03 | $22.2B | $10.5B | $231.0M | $10.3B | 46.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 110.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.0% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$45.3B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Revenue Growth
Revenue increased from both the prior quarter and the year-ago quarter, driving higher operating cash flow and free cash flow.
The increase in revenue was the strongest observable driver of the improvement in free cash flow and its margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue increased substantially, leading to a higher operating cash flow. Capital expenditure was lower than the prior quarter, further boosting free cash flow, and the free cash flow margin rose, indicating improved cash conversion efficiency.
Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow all increased, while capital expenditure decreased. The free cash flow margin was higher than both the prior quarter and the same quarter one year earlier.
The substantial increase in trade accounts receivable and inventory, as shown in the balance sheet, should be monitored for potential impact on future cash conversion.
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 | $1.9T | Used as the denominator for FCF yield. |
| TTM FCF yield | 1.7% | TTM free cash flow divided by market capitalization. |
| EV / TTM FCF | 59.5x | A quick valuation bridge, not a full DCF. |