Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was slightly lower than the prior quarter but higher than a year ago. Operating cash flow increased from the prior quarter, while free cash flow and margin improved sequentially but weakened compared to the same quarter last year.
- Operating cash flow of the current quarter was higher than the prior quarter, with capital expenditure also higher, resulting in a free cash flow that increased sequentially. The free cash flow margin improved from the prior quarter but was lower than the year-ago quarter.
- Compared to the prior quarter, revenue was lower but operating cash flow, free cash flow, and margin were higher. Compared to the same quarter last year, revenue was higher, operating cash flow was stable, capital expenditure was higher, and free cash flow and margin were lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$16.3B
Trailing twelve-month free cash flow.
Quarter free cash flow
$3.6B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$4.7B
Cash generated by operations before capital spending.
CapEx
$1.1B
Capital spending and related asset purchases.
FCF margin
9.0%
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 |
|---|---|---|---|---|---|
| 2024-04-28 | $36.4B | $5.5B | $847.0M | $4.7B | 12.8% |
| 2024-07-28 | $43.2B | $5.4B | $719.0M | $4.7B | 10.9% |
| 2024-10-27 | $40.2B | $4.2B | $818.0M | $3.4B | 8.5% |
| 2025-02-02 | $39.7B | $4.7B | $1.1B | $3.6B | 9.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 119.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.8% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$49.7B | 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 improvement
Operating cash flow rose from the prior quarter, enabling higher free cash flow despite an increase in capital expenditure. This was the strongest sequential change among the key cash flow metrics.
The sequential improvement in operating cash flow supported a higher free cash flow and margin compared to the prior quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow of the current quarter was higher than the prior quarter, with capital expenditure also higher, resulting in a free cash flow that increased sequentially. The free cash flow margin improved from the prior quarter but was lower than the year-ago quarter.
Compared to the prior quarter, revenue was lower but operating cash flow, free cash flow, and margin were higher. Compared to the same quarter last year, revenue was higher, operating cash flow was stable, capital expenditure was higher, and free cash flow and margin were lower.
Capital expenditure increased compared to both the prior quarter and the same quarter last year, which impacted free cash flow relative to the year-ago period.