Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was higher than both the prior quarter and the same quarter last year. Free cash flow margin weakened as operating cash flow did not keep pace with revenue growth and capital expenditure increased.
- Operating cash flow was stable compared to the same quarter last year but lower than the prior quarter. Capital expenditure was higher than a year ago but lower than the prior quarter, resulting in free cash flow that was stable sequentially and lower year over year. The free cash flow margin declined from both comparison periods.
- Compared to the prior quarter, revenue was higher but operating cash flow was lower, leading to stable free cash flow and a lower margin. Versus the same quarter last year, revenue was higher, operating cash flow was stable, but higher capital expenditure reduced free cash flow and margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.8B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.4B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.6B
Cash generated by operations before capital spending.
CapEx
$197.0M
Capital spending and related asset purchases.
FCF margin
9.7%
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 | $13.5B | $374.0M | $302.0M | $72.0M | 0.5% |
| 2025-04-30 | $13.2B | $38.0M | $183.0M | -$145.0M | -1.1% |
| 2025-07-31 | $13.9B | $1.7B | $215.0M | $1.4B | 10.4% |
| 2025-10-31 | $14.6B | $1.6B | $197.0M | $1.4B | 9.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 179.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.3% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$6.0B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Revenue Growth
Revenue was higher than both the prior quarter and the same quarter last year, marking an increase. However, free cash flow margin was lower, indicating that cash conversion did not improve proportionally.
The revenue increase did not translate into higher free cash flow or margin, as operating cash flow was stable or lower and capital expenditure rose.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was stable compared to the same quarter last year but lower than the prior quarter. Capital expenditure was higher than a year ago but lower than the prior quarter, resulting in free cash flow that was stable sequentially and lower year over year. The free cash flow margin declined from both comparison periods.
Compared to the prior quarter, revenue was higher but operating cash flow was lower, leading to stable free cash flow and a lower margin. Versus the same quarter last year, revenue was higher, operating cash flow was stable, but higher capital expenditure reduced free cash flow and margin.
Monitor the trend in capital expenditure relative to operating cash flow, as it directly affects free cash flow margin.