Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow and margin improved compared to the same quarter last year but weakened sequentially. Revenue was slightly lower than the prior quarter while operating cash flow declined significantly, leading to a lower free cash flow.
- Revenue was slightly lower than the prior quarter, while operating cash flow decreased substantially and capital expenditure increased, resulting in a much lower free cash flow and margin. Compared to the same quarter last year, revenue was higher, operating cash flow was slightly higher, and capital expenditure was lower, yielding an improved free cash flow and margin.
- Free cash flow and margin were lower than the prior quarter but higher than the same quarter one year earlier. Operating cash flow weakened sequentially while capital expenditure increased, contrasting with the year-ago period where both operating cash flow and capital expenditure moved favorably.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.9B
Trailing twelve-month free cash flow.
Quarter free cash flow
$150.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$383.0M
Cash generated by operations before capital spending.
CapEx
$233.0M
Capital spending and related asset purchases.
FCF margin
1.0%
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 | $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% |
| 2026-01-31 | $14.4B | $383.0M | $233.0M | $150.0M | 1.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 27.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.6% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$6.5B | 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 change
Operating cash flow was lower than the prior quarter but higher than the same quarter last year. The sequential decline was the main factor behind the lower free cash flow.
If operating cash flow does not stabilize, free cash flow margin may remain under pressure.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was slightly lower than the prior quarter, while operating cash flow decreased substantially and capital expenditure increased, resulting in a much lower free cash flow and margin. Compared to the same quarter last year, revenue was higher, operating cash flow was slightly higher, and capital expenditure was lower, yielding an improved free cash flow and margin.
Free cash flow and margin were lower than the prior quarter but higher than the same quarter one year earlier. Operating cash flow weakened sequentially while capital expenditure increased, contrasting with the year-ago period where both operating cash flow and capital expenditure moved favorably.
Monitor whether operating cash flow can recover from its sequential decline, as it is the primary driver of free cash flow.