Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved substantially versus the same quarter last year, supported by higher revenue and operating cash flow. However, compared to the prior quarter, free cash flow and margin weakened as operating cash flow declined while capital expenditure increased.
- Revenue was higher than both the prior quarter and the year-ago quarter. Operating cash flow was higher than a year ago but lower than the prior quarter. Capital expenditure increased from the prior quarter while remaining comparable to the year-ago level. The resulting free cash flow margin improved from the year-ago quarter but weakened from the prior quarter.
- Compared to the prior quarter, free cash flow and margin were lower, as operating cash flow declined despite revenue growth. Compared to the year-ago quarter, free cash flow and margin were substantially higher, with operating cash flow showing a strong increase.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$4.9B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.9B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$2.5B
Cash generated by operations before capital spending.
CapEx
$675.0M
Capital spending and related asset purchases.
FCF margin
6.3%
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 |
|---|---|---|---|---|---|
| 2024-11-01 | $24.4B | $1.6B | $639.0M | $914.0M | 3.8% |
| 2025-01-31 | $23.9B | $585.0M | $735.0M | -$150.0M | -0.6% |
| 2025-05-02 | $23.4B | $2.8B | $568.0M | $2.2B | 9.5% |
| 2025-08-01 | $29.8B | $2.5B | $675.0M | $1.9B | 6.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 160.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.3% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$20.5B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Revenue growth
Revenue was higher than both the prior quarter and the year-ago quarter, providing a strong base for cash generation. The company notes that operating cash flows are impacted by trends in the demand environment, and it monitors balance sheet efficiency to maintain liquidity.
Higher revenue supported a substantial increase in free cash flow compared to the year-ago period, despite a higher capital expenditure.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was higher than both the prior quarter and the year-ago quarter. Operating cash flow was higher than a year ago but lower than the prior quarter. Capital expenditure increased from the prior quarter while remaining comparable to the year-ago level. The resulting free cash flow margin improved from the year-ago quarter but weakened from the prior quarter.
Compared to the prior quarter, free cash flow and margin were lower, as operating cash flow declined despite revenue growth. Compared to the year-ago quarter, free cash flow and margin were substantially higher, with operating cash flow showing a strong increase.
Monitor the trend in operating cash flow, as it decreased from the prior quarter even as revenue rose, which may influence future free cash flow generation.