Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue increased compared to both the prior quarter and the same quarter last year. Operating cash flow rose sharply, leading to a higher free cash flow margin.
- Operating cash flow as a percentage of revenue improved, while capital expenditure also increased. The resulting free cash flow margin was higher than both comparison periods.
- Compared to the immediately preceding quarter, free cash flow and margin improved. Versus the same quarter one year earlier, free cash flow and margin were also higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$627.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.8B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$2.5B
Cash generated by operations before capital spending.
CapEx
$641.0M
Capital spending and related asset purchases.
FCF margin
18.8%
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 |
|---|---|---|---|---|---|
| 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% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 1042.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 6.6% | 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.
Operating Cash Flow Growth
Operating cash flow increased substantially from the prior quarter and was higher than the year-ago quarter, driving free cash flow higher.
The improvement in operating cash flow was the primary factor behind the higher free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow as a percentage of revenue improved, while capital expenditure also increased. The resulting free cash flow margin was higher than both comparison periods.
Compared to the immediately preceding quarter, free cash flow and margin improved. Versus the same quarter one year earlier, free cash flow and margin were also higher.
Monitor the trend in capital expenditure relative to operating cash flow.