Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow margin weakened compared to both the prior quarter and the same quarter last year, as operating cash flow declined while revenue rose. Capital expenditure increased, further pressuring free cash flow.
- Revenue was higher than the prior quarter, but operating cash flow was lower, resulting in a lower free cash flow. The free cash flow margin decreased due to the combination of lower operating cash flow and higher capital expenditure relative to revenue.
- Compared to the immediately preceding quarter, operating cash flow and free cash flow were lower, while revenue was higher. Versus the same quarter one year earlier, operating cash flow and free cash flow were also lower, despite revenue being higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$12.7B
Trailing twelve-month free cash flow.
Quarter free cash flow
$2.9B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$3.2B
Cash generated by operations before capital spending.
CapEx
$323.0M
Capital spending and related asset purchases.
FCF margin
19.4%
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 |
|---|---|---|---|---|---|
| 2025-01-25 | $14.0B | $2.2B | $210.0M | $2.0B | 14.5% |
| 2025-04-26 | $14.1B | $4.1B | $261.0M | $3.8B | 26.8% |
| 2025-07-26 | $14.7B | $4.2B | $217.0M | $4.0B | 27.4% |
| 2025-10-25 | $14.9B | $3.2B | $323.0M | $2.9B | 19.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 101.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.2% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$16.2B | 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 Weakening
Operating cash flow decreased compared to the prior quarter and the year-ago quarter, while revenue increased. This divergence, together with higher capital expenditure, contributed to a lower free cash flow margin.
The reduced operating cash flow, combined with higher capital expenditure, led to a significant decrease in free cash flow relative to both comparison periods.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was higher than the prior quarter, but operating cash flow was lower, resulting in a lower free cash flow. The free cash flow margin decreased due to the combination of lower operating cash flow and higher capital expenditure relative to revenue.
Compared to the immediately preceding quarter, operating cash flow and free cash flow were lower, while revenue was higher. Versus the same quarter one year earlier, operating cash flow and free cash flow were also lower, despite revenue being higher.
Monitor the trajectory of accounts receivable, which declined from the prior quarter end, as changes in this balance can influence operating cash flow in subsequent periods.