Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and operating cash flow both improved compared to a year ago, with free cash flow turning positive. The filing includes forward-looking statements and discusses liquidity and capital resources, including the planned disposition of H3C shares.
- The company converted revenue into positive free cash flow this quarter, supported by a positive operating cash flow that exceeded capital expenditure. The free cash flow margin turned positive, a significant improvement from the negative margin a year ago.
- Compared to the preceding quarter, revenue, operating cash flow, free cash flow, and margin all decreased. Versus the same quarter last year, all metrics improved, with operating cash flow and free cash flow moving from negative to positive.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.2B
Trailing twelve-month free cash flow.
Quarter free cash flow
$609.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.2B
Cash generated by operations before capital spending.
CapEx
$569.0M
Capital spending and related asset purchases.
FCF margin
6.5%
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 |
|---|---|---|---|---|---|
| 2025-04-30 | $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% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 134.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 6.1% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$16.8B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Return to positive free cash flow
The most notable change was the shift from negative operating cash flow a year ago to positive this quarter, which drove free cash flow into positive territory.
This enabled the company to report a positive free cash flow margin, a marked improvement from the prior year's negative result.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
The company converted revenue into positive free cash flow this quarter, supported by a positive operating cash flow that exceeded capital expenditure. The free cash flow margin turned positive, a significant improvement from the negative margin a year ago.
Compared to the preceding quarter, revenue, operating cash flow, free cash flow, and margin all decreased. Versus the same quarter last year, all metrics improved, with operating cash flow and free cash flow moving from negative to positive.
Monitor the free cash flow margin's stability after its sequential decline from a high level.