Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Cash conversion improved significantly compared to the prior quarter and the year-ago quarter, driven by higher operating cash flow and revenue. Free cash flow turned positive from a negative position a year earlier.
- Revenue increased, operating cash flow rose, and capital expenditure was slightly higher, resulting in higher free cash flow and an improved free cash flow margin.
- Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow were all higher, and the free cash flow margin improved. Versus the same quarter one year earlier, all metrics improved markedly, with operating cash flow and free cash flow turning from negative to positive.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$4.0B
Trailing twelve-month free cash flow.
Quarter free cash flow
$827.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.4B
Cash generated by operations before capital spending.
CapEx
$583.0M
Capital spending and related asset purchases.
FCF margin
7.7%
The share of revenue converted into free cash flow.
TTM FCF yield
6.5%
TTM FCF divided by market capitalization.
FCF reconciliation
Free cash flow is not a GAAP line item; it should be bridged from the cash flow statement.
| Operating cash flow | $1.4B | Cash generated by operations before capital spending. |
| Capital expenditures | $583.0M | Capital spending used to bridge CFO to FCF. |
| Free cash flow | $827.0M | Operating cash flow less capital spending. |
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 |
|---|---|---|---|---|---|
| 2022-04-30 | $6.7B | $379.0M | $725.0M | -$346.0M | -5.2% |
| 2022-07-31 | $7.0B | $1.3B | $773.0M | $481.0M | 6.9% |
| 2022-10-31 | $7.9B | $3.0B | $1.0B | $2.0B | 25.9% |
| 2023-01-31 | $7.8B | -$829.0M | $794.0M | -$1.6B | -20.8% |
| 2023-04-30 | $7.0B | $889.0M | $688.0M | $201.0M | 2.9% |
| 2023-07-31 | $7.0B | $1.5B | $671.0M | $854.0M | 12.2% |
| 2023-10-31 | $7.4B | $2.8B | $675.0M | $2.2B | 29.5% |
| 2024-01-31 | $6.8B | $64.0M | $656.0M | -$592.0M | -8.8% |
| 2024-04-30 | $7.2B | $1.1B | $560.0M | $533.0M | 7.4% |
| 2024-07-31 | $7.7B | $1.2B | $543.0M | $611.0M | 7.9% |
| 2024-10-31 | $8.5B | $2.0B | $608.0M | $1.4B | 16.8% |
| 2025-01-31 | $7.9B | -$390.0M | $528.0M | -$918.0M | -11.7% |
| 2025-04-30 | $7.6B | -$461.0M | $547.0M | -$1.0B | -13.2% |
| 2025-07-31 | $9.1B | $1.3B | $576.0M | $729.0M | 8.0% |
| 2025-10-31 | $9.7B | $2.5B | $641.0M | $1.8B | 18.8% |
| 2026-01-31 | $9.3B | $1.2B | $569.0M | $609.0M | 6.5% |
| 2026-04-30 | $10.7B | $1.4B | $583.0M | $827.0M | 7.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 132.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 5.5% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$16.0B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Revenue and operating cash flow growth
Revenue increased from both the prior quarter and the year-ago quarter, while operating cash flow rose even more sharply, leading to a substantial improvement in free cash flow.
The combination of higher revenue and stronger cash generation drove free cash flow to a positive level.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue increased, operating cash flow rose, and capital expenditure was slightly higher, resulting in higher free cash flow and an improved free cash flow margin.
Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow were all higher, and the free cash flow margin improved. Versus the same quarter one year earlier, all metrics improved markedly, with operating cash flow and free cash flow turning from negative to positive.
Monitor the trajectory of free cash flow margin as revenue and operating cash flow evolve.
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 | $61.1B | Used as the denominator for FCF yield. |
| TTM FCF yield | 6.5% | TTM free cash flow divided by market capitalization. |
| EV / TTM FCF | 19.3x | A quick valuation bridge, not a full DCF. |
Peer context
Free cash flow quality is easier to read against related public companies.
Risks and tripwires
Observable signals that would weaken the free cash flow thesis.
| Risk | Tripwire | Why it matters |
|---|---|---|
| FCF margin compression | FCF margin falls for two consecutive quarters. | Cash conversion may be weakening before earnings show it. |
| Capital intensity rises | CapEx/revenue moves materially above the recent run rate. | More operating cash flow would be consumed before becoming FCF. |
| Working capital drag | Inventory or receivables grow faster than revenue. | Reported growth may not translate into cash. |