Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved sharply versus both the prior quarter and the same quarter last year, driven by higher operating cash flow. The free cash flow margin widened as revenue grew while capital expenditure remained relatively stable.
- Revenue increased compared with both the prior quarter and the year-ago quarter, while operating cash flow rose more than proportionally, lifting free cash flow. Capital expenditure was lower than the prior quarter but slightly higher than the year-ago quarter, supporting the conversion improvement.
- Compared with the prior quarter, revenue, operating cash flow, and free cash flow were all higher, and the free cash flow margin improved. Versus the same quarter last year, all metrics were higher, with operating cash flow and free cash flow showing stronger growth than revenue.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$14.3B
Trailing twelve-month free cash flow.
Quarter free cash flow
$5.2B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$6.0B
Cash generated by operations before capital spending.
CapEx
$844.0M
Capital spending and related asset purchases.
FCF margin
12.4%
The share of revenue converted into free cash flow.
TTM FCF yield
4.2%
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 |
|---|---|---|---|---|---|
| 2025-08-03 | $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% |
| 2026-05-03 | $41.8B | $6.0B | $844.0M | $5.2B | 12.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 157.7% | 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 Strength
Operating cash flow was the strongest observable driver, rising substantially from both the prior quarter and the year-ago quarter. This increase outpaced revenue growth and directly boosted free cash flow.
The higher operating cash flow was the primary factor behind the improved free cash flow and margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue increased compared with both the prior quarter and the year-ago quarter, while operating cash flow rose more than proportionally, lifting free cash flow. Capital expenditure was lower than the prior quarter but slightly higher than the year-ago quarter, supporting the conversion improvement.
Compared with the prior quarter, revenue, operating cash flow, and free cash flow were all higher, and the free cash flow margin improved. Versus the same quarter last year, all metrics were higher, with operating cash flow and free cash flow showing stronger growth than revenue.
Monitor whether operating cash flow can sustain its elevated level relative to revenue in subsequent quarters.
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 | $343.2B | Used as the denominator for FCF yield. |
| TTM FCF yield | 4.2% | 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.