Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue increased from both the prior quarter and the same quarter last year, while operating cash flow rose more sharply, lifting free cash flow. The free cash flow margin also improved relative to both comparison periods.
- Operating cash flow expanded faster than revenue, capital expenditure was slightly lower than the prior quarter, and free cash flow increased. The free cash flow margin improved, reflecting stronger cash conversion from revenue to free cash flow.
- Compared to the immediately preceding quarter, revenue, operating cash flow, free cash flow, and the free cash flow margin all improved. Versus the same quarter one year earlier, all of these metrics also improved, with operating cash flow and free cash flow showing stronger growth than revenue.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$7.7B
Trailing twelve-month free cash flow.
Quarter free cash flow
$3.7B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$4.2B
Cash generated by operations before capital spending.
CapEx
$495.0M
Capital spending and related asset purchases.
FCF margin
15.6%
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 |
|---|---|---|---|---|---|
| 2024-11-01 | $20.2B | $1.3B | $571.0M | $728.0M | 3.6% |
| 2025-01-31 | $18.6B | $911.0M | $548.0M | $363.0M | 2.0% |
| 2025-05-02 | $20.9B | $3.4B | $518.0M | $2.9B | 13.7% |
| 2025-08-01 | $24.0B | $4.2B | $495.0M | $3.7B | 15.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 155.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.1% | Lower capital intensity usually supports FCF margin. |
| Net cash | n/a | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Strong operating cash flow growth
Operating cash flow grew faster than revenue in both comparisons, providing the primary lift to free cash flow. Capital expenditure was relatively stable, so the improvement in free cash flow was driven mainly by operating cash flow.
This operating cash flow strength enabled a higher free cash flow margin and overall improved cash generation.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow expanded faster than revenue, capital expenditure was slightly lower than the prior quarter, and free cash flow increased. The free cash flow margin improved, reflecting stronger cash conversion from revenue to free cash flow.
Compared to the immediately preceding quarter, revenue, operating cash flow, free cash flow, and the free cash flow margin all improved. Versus the same quarter one year earlier, all of these metrics also improved, with operating cash flow and free cash flow showing stronger growth than revenue.
Monitor the trend in capital expenditure relative to revenue, as it has increased from the year-ago level.