Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow margin improved compared to the immediately preceding quarter but weakened compared to the same quarter one year earlier. Operating cash flow increased relative to both periods, while capital expenditure remained stable.
- Revenue was slightly lower than the prior quarter but higher than a year ago. Operating cash flow increased compared to both periods, leading to higher free cash flow and an improved margin relative to the prior quarter. The filing context notes the company's liquidity sources but does not explain the specific movements in cash flow metrics.
- Compared to the previous quarter, free cash flow and margin improved, driven by higher operating cash flow on slightly lower revenue. Compared to the same quarter last year, free cash flow was slightly higher but margin decreased as revenue grew faster than operating cash flow.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$14.7B
Trailing twelve-month free cash flow.
Quarter free cash flow
$6.6B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$6.7B
Cash generated by operations before capital spending.
CapEx
$145.0M
Capital spending and related asset purchases.
FCF margin
58.9%
The share of revenue converted into free cash flow.
TTM FCF yield
11.0%
TTM FCF divided by market capitalization.
FCF reconciliation
Free cash flow is not a GAAP line item; it should be bridged from the cash flow statement.
| Operating cash flow | $6.7B | Cash generated by operations before capital spending. |
| Capital expenditures | $145.0M | Capital spending used to bridge CFO to FCF. |
| Free cash flow | $6.6B | Operating cash flow less capital spending. |
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 |
|---|---|---|---|---|---|
| 2022-04-30 | $7.4B | $3.7B | $179.0M | $3.5B | 47.2% |
| 2022-07-31 | $7.7B | $334.0M | $203.0M | $131.0M | 1.7% |
| 2022-10-31 | $7.8B | $313.0M | $198.0M | $115.0M | 1.5% |
| 2023-01-31 | $8.4B | $2.8B | $218.0M | $2.6B | 30.7% |
| 2023-04-30 | $8.2B | $4.5B | $243.0M | $4.2B | 51.5% |
| 2023-07-31 | $8.6B | $808.0M | $180.0M | $628.0M | 7.3% |
| 2023-10-31 | $8.7B | $1.5B | $166.0M | $1.4B | 15.7% |
| 2024-01-31 | $9.3B | $3.4B | $147.0M | $3.3B | 35.1% |
| 2024-04-30 | $9.1B | $6.2B | $163.0M | $6.1B | 66.6% |
| 2024-07-31 | $9.3B | $892.0M | $137.0M | $755.0M | 8.1% |
| 2024-10-31 | $9.4B | $2.0B | $204.0M | $1.8B | 18.8% |
| 2025-01-31 | $10.0B | $4.0B | $154.0M | $3.8B | 38.2% |
| 2025-04-30 | $9.8B | $6.5B | $179.0M | $6.3B | 64.1% |
| 2025-07-31 | $10.2B | $740.0M | $135.0M | $605.0M | 5.9% |
| 2025-10-31 | $10.3B | $2.3B | $139.0M | $2.2B | 21.2% |
| 2026-01-31 | $11.2B | $5.5B | $141.0M | $5.3B | 47.5% |
| 2026-04-30 | $11.1B | $6.7B | $145.0M | $6.6B | 58.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 311.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.3% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$30.3B | 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 conversion
Operating cash flow increased from both the prior quarter and the year-ago quarter, while capital expenditure remained relatively stable. This resulted in a higher free cash flow compared to both periods.
The improved conversion from revenue to cash strengthened free cash flow relative to the prior quarter, but the margin remains below the year-ago level.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was slightly lower than the prior quarter but higher than a year ago. Operating cash flow increased compared to both periods, leading to higher free cash flow and an improved margin relative to the prior quarter. The filing context notes the company's liquidity sources but does not explain the specific movements in cash flow metrics.
Compared to the previous quarter, free cash flow and margin improved, driven by higher operating cash flow on slightly lower revenue. Compared to the same quarter last year, free cash flow was slightly higher but margin decreased as revenue grew faster than operating cash flow.
Monitor the relationship between revenue growth and operating cash flow conversion, as the current margin is below the year-ago level.
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 | $133.8B | Used as the denominator for FCF yield. |
| TTM FCF yield | 11.0% | TTM free cash flow divided by market capitalization. |
| EV / TTM FCF | 11.2x | A quick valuation bridge, not a full DCF. |
Peer context
Free cash flow quality is easier to read against related public companies.
Risks and tripwires
Observable signals that would weaken the free cash flow thesis.
| Risk | Tripwire | Why it matters |
|---|---|---|
| FCF margin compression | FCF margin falls for two consecutive quarters. | Cash conversion may be weakening before earnings show it. |
| Capital intensity rises | CapEx/revenue moves materially above the recent run rate. | More operating cash flow would be consumed before becoming FCF. |
| Working capital drag | Inventory or receivables grow faster than revenue. | Reported growth may not translate into cash. |