Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue increased from both the prior quarter and the year-ago period, while free cash flow margin narrowed. Operating cash flow declined sequentially but grew compared to the same quarter last year.
- Free cash flow as a percentage of revenue was lower than the preceding quarter and the year-earlier quarter, as operating cash flow growth did not keep pace with revenue expansion and capital expenditure rose.
- Compared to the prior quarter, revenue was higher but operating cash flow and free cash flow were lower, leading to a lower free cash flow margin. Versus the same quarter one year ago, revenue, operating cash flow, and free cash flow were higher, though the margin declined.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$9.4B
Trailing twelve-month free cash flow.
Quarter free cash flow
$3.1B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$4.1B
Cash generated by operations before capital spending.
CapEx
$963.0M
Capital spending and related asset purchases.
FCF margin
7.1%
The share of revenue converted into free cash flow.
TTM FCF yield
n/a
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 |
|---|---|---|---|---|---|
| 2025-08-01 | $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% |
| 2026-05-01 | $43.8B | $4.1B | $963.0M | $3.1B | 7.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 90.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.2% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$19.6B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Cash Flow Margin Compression
Despite a higher revenue base, free cash flow margin contracted due to a smaller increase in operating cash flow and higher capital expenditure.
If the margin trend continues, it may constrain future free cash flow generation relative to revenue.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Free cash flow as a percentage of revenue was lower than the preceding quarter and the year-earlier quarter, as operating cash flow growth did not keep pace with revenue expansion and capital expenditure rose.
Compared to the prior quarter, revenue was higher but operating cash flow and free cash flow were lower, leading to a lower free cash flow margin. Versus the same quarter one year ago, revenue, operating cash flow, and free cash flow were higher, though the margin declined.
Monitor capital expenditure trends relative to operating cash flow, as capital spending increased while cash generation weakened sequentially.
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 | n/a | Used as the denominator for FCF yield. |
| TTM FCF yield | n/a | 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.