Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
The current quarter's cash generation improved markedly, with revenue higher than both the prior quarter and the same quarter last year. Operating cash flow rose sharply, leading to a significantly higher free cash flow margin.
- Revenue was higher than in the prior quarter, and operating cash flow increased even more, resulting in a much higher free cash flow margin. Capital expenditure remained stable, so the conversion improvement was driven by stronger operating cash flow.
- Compared to the prior quarter, revenue, operating cash flow, free cash flow, and margin were all higher. Versus the same quarter a year ago, all metrics also improved, with operating cash flow and free cash flow showing a larger increase relative to revenue.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$14.4B
Trailing twelve-month free cash flow.
Quarter free cash flow
$5.3B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$5.5B
Cash generated by operations before capital spending.
CapEx
$141.0M
Capital spending and related asset purchases.
FCF margin
47.5%
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 |
|---|---|---|---|---|---|
| 2025-04-30 | $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% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 274.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.3% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$7.1B | 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, while revenue also increased. This combination drove a higher free cash flow margin, as capital expenditure stayed nearly unchanged.
The improved cash conversion enhances the company's liquidity position, as noted in the filing's discussion of cash and marketable securities.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was higher than in the prior quarter, and operating cash flow increased even more, resulting in a much higher free cash flow margin. Capital expenditure remained stable, so the conversion improvement was driven by stronger operating cash flow.
Compared to the prior quarter, revenue, operating cash flow, free cash flow, and margin were all higher. Versus the same quarter a year ago, all metrics also improved, with operating cash flow and free cash flow showing a larger increase relative to revenue.
Monitor whether operating cash flow can sustain its elevated level relative to revenue in future quarters.