Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue increased from the preceding quarter and was slightly higher than a year earlier. Operating cash flow turned positive, generating a substantial free cash flow and a positive margin, a notable improvement from the prior quarter's negative free cash flow. The filing describes the company's equipment operations and financial services segments, and notes industry trends and company goals.
- Revenue and operating cash flow both increased while capital expenditure decreased relative to the preceding quarter. The resulting free cash flow was positive and the margin improved, reflecting a stronger conversion of revenue into cash.
- Compared to the preceding quarter, all metrics improved: revenue, operating cash flow, free cash flow, and margin were higher, and capital expenditure was lower. Versus the same quarter one year earlier, revenue, operating cash flow, and free cash flow were slightly higher, with a modestly improved margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$6.7B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.7B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.9B
Cash generated by operations before capital spending.
CapEx
$195.0M
Capital spending and related asset purchases.
FCF margin
13.0%
The share of revenue converted into free cash flow.
TTM FCF yield
4.2%
TTM FCF divided by market capitalization.
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 |
|---|---|---|---|---|---|
| 2025-07-27 | $12.0B | $2.9B | $297.0M | $2.6B | 21.6% |
| 2025-11-02 | $12.4B | $4.0B | $508.0M | $3.5B | 28.1% |
| 2026-02-01 | $9.6B | -$890.0M | $256.0M | -$1.1B | -11.9% |
| 2026-05-03 | $13.4B | $1.9B | $195.0M | $1.7B | 13.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 98.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.5% | 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
Operating cash flow improved from a negative to a positive amount, the most significant change among the metrics. This turnaround was accompanied by higher revenue and lower capital expenditure.
The recovery in operating cash flow was the primary factor enabling the shift from negative to positive free cash flow.
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 while capital expenditure decreased relative to the preceding quarter. The resulting free cash flow was positive and the margin improved, reflecting a stronger conversion of revenue into cash.
Compared to the preceding quarter, all metrics improved: revenue, operating cash flow, free cash flow, and margin were higher, and capital expenditure was lower. Versus the same quarter one year earlier, revenue, operating cash flow, and free cash flow were slightly higher, with a modestly improved margin.
Monitor the sustainability of the operating cash flow level given the preceding quarter's negative figure.
Valuation context
A cash-flow page should show how much investors are paying for the cash stream, without turning into a full DCF.
| Market capitalization | $157.8B | Used as the denominator for FCF yield. |
| TTM FCF yield | 4.2% | TTM free cash flow divided by market capitalization. |
| EV / TTM FCF | n/a | A quick valuation bridge, not a full DCF. |
Peer context
Free cash flow quality is easier to read against related public companies.