Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
The current quarter's free cash flow margin improved compared to both the preceding quarter and the same quarter one year earlier. Revenue and operating cash flow were also higher than both prior periods.
- Operating cash flow increased relative to revenue, leading to a higher free cash flow margin. Capital expenditure remained modestly higher than both prior periods.
- Compared to the preceding quarter, free cash flow margin improved significantly; compared to the same quarter one year earlier, margin also improved. Revenue and operating cash flow were higher than both periods.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$6.8B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.5B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.6B
Cash generated by operations before capital spending.
CapEx
$46.0M
Capital spending and related asset purchases.
FCF margin
32.8%
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 |
|---|---|---|---|---|---|
| 2025-04-30 | $7.8B | $4.4B | $35.0M | $4.4B | 56.2% |
| 2025-07-31 | $3.8B | $381.0M | $15.0M | $366.0M | 9.6% |
| 2025-10-31 | $3.9B | $637.0M | $38.0M | $599.0M | 15.4% |
| 2026-01-31 | $4.7B | $1.6B | $46.0M | $1.5B | 32.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 219.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.0% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$3.2B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Cash Conversion Strength
Operating cash flow grew at a faster pace than revenue, driving free cash flow margin expansion. Capital expenditure remained a small fraction of operating cash flow.
This improvement supports the company's cash generation capability from its revenue base.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow increased relative to revenue, leading to a higher free cash flow margin. Capital expenditure remained modestly higher than both prior periods.
Compared to the preceding quarter, free cash flow margin improved significantly; compared to the same quarter one year earlier, margin also improved. Revenue and operating cash flow were higher than both periods.
Monitor the trend in operating cash flow relative to revenue in upcoming quarters.