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 compared to both the prior quarter and the same quarter last year. Operating cash flow declined while capital expenditure rose relative to the year-ago period.
- Revenue was lower than the prior quarter but higher than a year ago. Operating cash flow decreased sequentially and year-over-year, while capital expenditure increased year-over-year, resulting in a lower free cash flow margin.
- Compared to the prior quarter, revenue, operating cash flow, free cash flow, and margin all decreased. Versus the same quarter last year, revenue improved, but operating cash flow, free cash flow, and margin weakened.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$13.9B
Trailing twelve-month free cash flow.
Quarter free cash flow
$3.1B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$4.0B
Cash generated by operations before capital spending.
CapEx
$898.0M
Capital spending and related asset purchases.
FCF margin
7.5%
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 |
|---|---|---|---|---|---|
| 2025-02-02 | $39.7B | $4.7B | $1.1B | $3.6B | 9.0% |
| 2025-05-04 | $39.9B | $4.3B | $806.0M | $3.5B | 8.8% |
| 2025-08-03 | $45.3B | $4.6B | $917.0M | $3.7B | 8.2% |
| 2025-11-02 | $41.4B | $4.0B | $898.0M | $3.1B | 7.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 86.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.2% | 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 Decline
Operating cash flow was lower than both the prior quarter and the same quarter last year, while revenue was higher year-over-year. This divergence is the strongest observable driver of the weaker free cash flow.
The decline in operating cash flow directly reduced free cash flow and margin despite higher revenue compared to a year ago.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was lower than the prior quarter but higher than a year ago. Operating cash flow decreased sequentially and year-over-year, while capital expenditure increased year-over-year, resulting in a lower free cash flow margin.
Compared to the prior quarter, revenue, operating cash flow, free cash flow, and margin all decreased. Versus the same quarter last year, revenue improved, but operating cash flow, free cash flow, and margin weakened.
Monitor the trajectory of operating cash flow, as it declined both sequentially and year-over-year despite higher revenue versus last year.