Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue, operating cash flow, and free cash flow all improved compared to both the prior quarter and the same quarter last year. The free cash flow margin turned positive and strengthened significantly versus both comparison periods.
- Operating cash flow was substantially higher than capital expenditure, resulting in a large positive free cash flow. The free cash flow margin rose sharply from the prior quarter and from a negative level a year ago, indicating a stronger conversion of revenue into free cash flow.
- Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow were all higher, and the free cash flow margin improved. Versus the same quarter one year earlier, all metrics were higher, with free cash flow turning from negative to positive and the margin shifting from negative to positive.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$8.6B
Trailing twelve-month free cash flow.
Quarter free cash flow
$4.0B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$4.7B
Cash generated by operations before capital spending.
CapEx
$721.0M
Capital spending and related asset purchases.
FCF margin
11.8%
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 |
|---|---|---|---|---|---|
| 2025-05-02 | $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% |
| 2026-01-30 | $33.4B | $4.7B | $721.0M | $4.0B | 11.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 175.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.2% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$20.0B | 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 Strength
Operating cash flow was the strongest observable driver, rising substantially from both the prior quarter and the year-ago quarter. This increase was the primary factor behind the large positive free cash flow and the improved margin.
The higher operating cash flow directly drove free cash flow to a positive level and significantly improved the free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was substantially higher than capital expenditure, resulting in a large positive free cash flow. The free cash flow margin rose sharply from the prior quarter and from a negative level a year ago, indicating a stronger conversion of revenue into free cash flow.
Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow were all higher, and the free cash flow margin improved. Versus the same quarter one year earlier, all metrics were higher, with free cash flow turning from negative to positive and the margin shifting from negative to positive.
Monitor whether operating cash flow can sustain its elevated level relative to capital expenditure in future periods.