Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow and margin weakened in the current quarter compared to both the prior quarter and the same quarter a year ago. Revenue was lower than the prior quarter but higher than a year ago, while operating cash flow declined substantially.
- Revenue conversion into operating cash flow decreased, as operating cash flow fell more sharply than revenue. With capital expenditure relatively stable, the resulting free cash flow and its margin declined significantly.
- Compared with the prior quarter, revenue, operating cash flow, free cash flow, and free cash flow margin all were lower. Versus the same quarter a year ago, revenue was higher but operating cash flow, free cash flow, and margin were lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$4.4B
Trailing twelve-month free cash flow.
Quarter free cash flow
$503.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.2B
Cash generated by operations before capital spending.
CapEx
$669.0M
Capital spending and related asset purchases.
FCF margin
1.9%
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 |
|---|---|---|---|---|---|
| 2025-01-31 | $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% |
| 2025-10-31 | $27.0B | $1.2B | $669.0M | $503.0M | 1.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 32.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.5% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$21.7B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Decline in Operating Cash Flow
Operating cash flow decreased substantially from both the prior quarter and the same quarter a year ago, while capital expenditure remained relatively flat. This drove the weakening in free cash flow and margin.
The lower operating cash flow directly reduced free cash flow and compressed the free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue conversion into operating cash flow decreased, as operating cash flow fell more sharply than revenue. With capital expenditure relatively stable, the resulting free cash flow and its margin declined significantly.
Compared with the prior quarter, revenue, operating cash flow, free cash flow, and free cash flow margin all were lower. Versus the same quarter a year ago, revenue was higher but operating cash flow, free cash flow, and margin were lower.
Monitor the trajectory of operating cash flow, as it is the primary source of liquidity and the main driver of free cash flow.