Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and free cash flow margin were lower compared to both the immediate prior quarter and the same quarter one year ago. Operating cash flow decreased from the prior year but improved from the preceding quarter.
- Operating cash flow as a proportion of revenue was lower than the year-ago quarter but higher than the preceding quarter. Capital expenditure was lower than the year-ago period, contributing to free cash flow that was lower year over year but higher sequentially.
- Compared to the immediate prior quarter, revenue was lower and operating cash flow was higher, resulting in a higher free cash flow margin. Compared to the same quarter one year earlier, revenue, operating cash flow, free cash flow, and margin were all lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$7.1B
Trailing twelve-month free cash flow.
Quarter free cash flow
$2.6B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$2.9B
Cash generated by operations before capital spending.
CapEx
$297.0M
Capital spending and related asset purchases.
FCF margin
21.6%
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 |
|---|---|---|---|---|---|
| 2024-10-27 | $11.1B | $5.1B | $597.0M | $4.5B | 40.3% |
| 2025-01-26 | $8.5B | -$1.1B | $352.0M | -$1.5B | -17.4% |
| 2025-04-27 | $12.8B | $1.7B | $203.0M | $1.5B | 11.7% |
| 2025-07-27 | $12.0B | $2.9B | $297.0M | $2.6B | 21.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 201.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.5% | Lower capital intensity usually supports FCF margin. |
| Net cash | n/a | 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 Recovery
Despite lower revenue, operating cash flow improved significantly from the prior quarter, indicating a stronger conversion from revenue to cash.
This sequential cash flow improvement supported a higher free cash flow margin in the current quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow as a proportion of revenue was lower than the year-ago quarter but higher than the preceding quarter. Capital expenditure was lower than the year-ago period, contributing to free cash flow that was lower year over year but higher sequentially.
Compared to the immediate prior quarter, revenue was lower and operating cash flow was higher, resulting in a higher free cash flow margin. Compared to the same quarter one year earlier, revenue, operating cash flow, free cash flow, and margin were all lower.
Monitor whether operating cash flow can sustain its sequential improvement given the decline in revenue from the preceding quarter.