Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue increased compared to both the prior quarter and the same quarter last year. Free cash flow improved sequentially but was stable relative to the year-ago period, with a margin that improved from the prior quarter but weakened from a year earlier.
- Operating cash flow rose compared to the previous quarter, while capital expenditure also increased. The resulting free cash flow was higher sequentially, and the free cash flow margin improved, though it remained lower than the year-ago level.
- Compared to the immediately preceding quarter, revenue and operating cash flow were higher, leading to a stronger free cash flow and margin. Versus the same quarter one year earlier, revenue was higher, operating cash flow was similar, and free cash flow was stable, but the margin was lower due to higher capital expenditure.
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
$3.8B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$4.1B
Cash generated by operations before capital spending.
CapEx
$261.0M
Capital spending and related asset purchases.
FCF margin
26.8%
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 |
|---|---|---|---|---|---|
| 2024-07-27 | $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% |
| 2025-04-26 | $14.1B | $4.1B | $261.0M | $3.8B | 26.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 152.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.8% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$16.9B | 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 Improvement
Operating cash flow increased compared to the prior quarter, the primary factor behind the sequential improvement in free cash flow and margin. Capital expenditure rose but at a lesser rate, allowing cash conversion to strengthen.
This improvement drove the quarter's free cash flow margin to a level higher than the previous quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow rose compared to the previous quarter, while capital expenditure also increased. The resulting free cash flow was higher sequentially, and the free cash flow margin improved, though it remained lower than the year-ago level.
Compared to the immediately preceding quarter, revenue and operating cash flow were higher, leading to a stronger free cash flow and margin. Versus the same quarter one year earlier, revenue was higher, operating cash flow was similar, and free cash flow was stable, but the margin was lower due to higher capital expenditure.
Monitor the trend in inventory levels, which the filing shows decreased from the prior fiscal year end.