Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow increased over the prior year but declined from the previous quarter. The year-over-year improvement reflects higher revenue and operating cash flow, while the sequential decrease resulted from lower operating cash flow despite slightly higher revenue.
- The free cash flow margin improved from the prior year but weakened from the previous quarter, indicating mixed cash conversion efficiency relative to revenue.
- Compared to the immediately preceding quarter, free cash flow and margin were lower as operating cash flow declined. Compared to the same quarter one year earlier, free cash flow and margin were higher, driven by stronger revenue and operating cash flow.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$12.8B
Trailing twelve-month free cash flow.
Quarter free cash flow
$2.0B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$2.2B
Cash generated by operations before capital spending.
CapEx
$210.0M
Capital spending and related asset purchases.
FCF margin
14.5%
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 |
|---|---|---|---|---|---|
| 2024-04-27 | $12.7B | $4.0B | $168.0M | $3.8B | 29.9% |
| 2024-07-27 | $13.6B | $3.7B | $198.0M | $3.5B | 25.9% |
| 2024-10-26 | $13.8B | $3.7B | $217.0M | $3.4B | 24.9% |
| 2025-01-25 | $14.0B | $2.2B | $210.0M | $2.0B | 14.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 83.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.5% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$11.6B | 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 Decline
Operating cash flow decreased substantially from the previous quarter, despite a slight increase in revenue, leading to a lower free cash flow and margin.
This decline in operating cash flow negatively affected sequential free cash flow performance.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
The free cash flow margin improved from the prior year but weakened from the previous quarter, indicating mixed cash conversion efficiency relative to revenue.
Compared to the immediately preceding quarter, free cash flow and margin were lower as operating cash flow declined. Compared to the same quarter one year earlier, free cash flow and margin were higher, driven by stronger revenue and operating cash flow.
Monitor operating cash flow trends, as the sequential decline was the primary factor behind the decrease in free cash flow.