Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow decreased compared to both the prior quarter and the same quarter last year. The decline was driven by lower operating cash flow, partially offset by reduced capital expenditure.
- Revenue was slightly higher than the previous quarter and notably higher than a year ago. However, operating cash flow was lower, leading to a lower free cash flow and a weakened free cash flow margin.
- Compared to the immediately preceding quarter, free cash flow was slightly lower as operating cash flow decreased while capital expenditure also decreased. Compared to the same quarter one year earlier, free cash flow was substantially lower, with operating cash flow declining more than the reduction in capital expenditure.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$15.2B
Trailing twelve-month free cash flow.
Quarter free cash flow
$3.5B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$4.3B
Cash generated by operations before capital spending.
CapEx
$806.0M
Capital spending and related asset purchases.
FCF margin
8.8%
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 |
|---|---|---|---|---|---|
| 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% |
| 2025-05-04 | $39.9B | $4.3B | $806.0M | $3.5B | 8.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 102.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.0% | Lower capital intensity usually supports FCF margin. |
| Net cash | n/a | 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 Weakening
Operating cash flow declined sequentially and year-over-year, despite higher revenue. This was the primary factor behind the lower free cash flow.
If operating cash flow continues to decline, free cash flow may remain under pressure even with controlled capital expenditure.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was slightly higher than the previous quarter and notably higher than a year ago. However, operating cash flow was lower, leading to a lower free cash flow and a weakened free cash flow margin.
Compared to the immediately preceding quarter, free cash flow was slightly lower as operating cash flow decreased while capital expenditure also decreased. Compared to the same quarter one year earlier, free cash flow was substantially lower, with operating cash flow declining more than the reduction in capital expenditure.
Monitor the trend in operating cash flow, as it has weakened relative to both prior periods.