Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow margin weakened compared to both the prior quarter and the same quarter last year, driven by lower operating cash flow relative to revenue. Capital expenditure was stable versus a year ago but higher than the preceding quarter.
- Revenue declined from the prior quarter and was lower than a year ago, while operating cash flow fell more sharply, resulting in a lower free cash flow margin. Capital expenditure increased sequentially but matched the year-ago level.
- Compared to the prior quarter, revenue, operating cash flow, free cash flow, and free cash flow margin all decreased, while capital expenditure increased. Versus the same quarter last year, all metrics were lower except capital expenditure, which was unchanged.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$12.6B
Trailing twelve-month free cash flow.
Quarter free cash flow
$2.3B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$3.3B
Cash generated by operations before capital spending.
CapEx
$1.1B
Capital spending and related asset purchases.
FCF margin
6.0%
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 |
|---|---|---|---|---|---|
| 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% |
| 2026-02-01 | $38.2B | $3.3B | $1.1B | $2.3B | 6.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 89.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.8% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$48.0B | 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 Decline
Operating cash flow decreased both sequentially and year-over-year, while revenue also fell but at a slower pace. This divergence compressed the free cash flow margin.
The lower operating cash flow was the strongest observable driver of the reduced free cash flow and margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue declined from the prior quarter and was lower than a year ago, while operating cash flow fell more sharply, resulting in a lower free cash flow margin. Capital expenditure increased sequentially but matched the year-ago level.
Compared to the prior quarter, revenue, operating cash flow, free cash flow, and free cash flow margin all decreased, while capital expenditure increased. Versus the same quarter last year, all metrics were lower except capital expenditure, which was unchanged.
Monitor the trajectory of operating cash flow relative to revenue, as its decline was the primary factor behind the weakened free cash flow margin.