Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved sharply from the prior quarter, driven by a large increase in operating cash flow. Compared to the same quarter last year, free cash flow was also higher, though revenue was lower.
- Revenue was slightly higher than the prior quarter, while operating cash flow rose substantially, leading to a much higher free cash flow and free cash flow margin. Capital expenditure was stable relative to both comparison periods.
- Compared to the prior quarter, free cash flow and free cash flow margin were significantly higher, driven by a large increase in operating cash flow. Versus the same quarter last year, free cash flow and margin were also higher, despite lower revenue.
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
$1.7B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$2.7B
Cash generated by operations before capital spending.
CapEx
$946.0M
Capital spending and related asset purchases.
FCF margin
4.9%
The share of revenue converted into free cash flow.
TTM FCF yield
8.1%
TTM FCF divided by market capitalization.
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 |
|---|---|---|---|---|---|
| 2025-02-01 | $34.3B | $1.4B | $884.0M | $520.0M | 1.5% |
| 2025-08-16 | $33.9B | $1.5B | $924.0M | $615.0M | 1.8% |
| 2025-11-08 | $33.9B | $970.0M | $941.0M | $29.0M | 0.1% |
| 2026-01-31 | $34.7B | $2.7B | $946.0M | $1.7B | 4.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 198.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.7% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$12.5B | 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 Surge
Operating cash flow rose sharply from the prior quarter and was also higher than the same quarter last year, driving a substantial improvement in free cash flow. This was the strongest observable factor in the quarter's cash conversion.
The increase in operating cash flow was the primary reason free cash flow and margin improved versus both comparison periods.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was slightly higher than the prior quarter, while operating cash flow rose substantially, leading to a much higher free cash flow and free cash flow margin. Capital expenditure was stable relative to both comparison periods.
Compared to the prior quarter, free cash flow and free cash flow margin were significantly higher, driven by a large increase in operating cash flow. Versus the same quarter last year, free cash flow and margin were also higher, despite lower revenue.
Monitor whether operating cash flow can sustain its elevated level relative to revenue in future periods.
Valuation context
A cash-flow page should show how much investors are paying for the cash stream, without turning into a full DCF.
| Market capitalization | $35.4B | Used as the denominator for FCF yield. |
| TTM FCF yield | 8.1% | TTM free cash flow divided by market capitalization. |
| EV / TTM FCF | 16.7x | A quick valuation bridge, not a full DCF. |
Peer context
Free cash flow quality is easier to read against related public companies.