Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
The quarter's free cash flow margin improved sequentially but weakened from the same quarter last year. Operating cash flow increased from the prior quarter while capital expenditure also rose, resulting in higher free cash flow.
- Revenue and operating cash flow both increased from the previous quarter, and free cash flow grew as a result. The free cash flow margin improved compared to the prior quarter but was lower than a year earlier.
- Compared to the immediately preceding quarter, operating cash flow and free cash flow were higher, while capital expenditure was also higher. Versus the same quarter one year ago, operating cash flow and free cash flow were lower, and the free cash flow margin was lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$6.1B
Trailing twelve-month free cash flow.
Quarter free cash flow
$3.5B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$4.0B
Cash generated by operations before capital spending.
CapEx
$508.0M
Capital spending and related asset purchases.
FCF margin
28.1%
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 |
|---|---|---|---|---|---|
| 2025-01-26 | $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% |
| 2025-11-02 | $12.4B | $4.0B | $508.0M | $3.5B | 28.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 327.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 4.1% | 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.
Free cash flow margin improvement
The free cash flow margin rose from the prior quarter, driven by a larger increase in operating cash flow compared to revenue. However, the margin remains below the level achieved in the same quarter last year.
The higher free cash flow provides increased financial flexibility compared to the prior quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue and operating cash flow both increased from the previous quarter, and free cash flow grew as a result. The free cash flow margin improved compared to the prior quarter but was lower than a year earlier.
Compared to the immediately preceding quarter, operating cash flow and free cash flow were higher, while capital expenditure was also higher. Versus the same quarter one year ago, operating cash flow and free cash flow were lower, and the free cash flow margin was lower.
Monitor the trend in capital expenditure relative to operating cash flow, as it increased from the prior quarter.