Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow was minimal as operating cash flow declined sharply from the prior quarter and the year-ago quarter. Capital expenditure remained relatively stable, so the drop in free cash flow was driven almost entirely by lower cash from operations.
- Revenue was slightly higher than the year-ago quarter but lower than the prior quarter. Operating cash flow fell significantly compared with both periods, resulting in a free cash flow margin that weakened to a very low level.
- Compared with the prior quarter, revenue was lower and operating cash flow was substantially lower, causing free cash flow to decline sharply. Versus the same quarter one year earlier, revenue was slightly higher but operating cash flow was lower, and free cash flow was also lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$7.0B
Trailing twelve-month free cash flow.
Quarter free cash flow
$90.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$687.0M
Cash generated by operations before capital spending.
CapEx
$597.0M
Capital spending and related asset purchases.
FCF margin
0.4%
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 | $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% |
| 2025-10-31 | $20.8B | $687.0M | $597.0M | $90.0M | 0.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 5.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.9% | 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.
Operating Cash Flow Decline
Operating cash flow was the strongest observable driver of the change in free cash flow, falling sharply from both the prior quarter and the year-ago quarter. Capital expenditure was relatively stable, so the decline in free cash flow was almost entirely attributable to lower cash generated from operations.
The sharp reduction in operating cash flow compressed free cash flow to a minimal level despite stable capital spending.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was slightly higher than the year-ago quarter but lower than the prior quarter. Operating cash flow fell significantly compared with both periods, resulting in a free cash flow margin that weakened to a very low level.
Compared with the prior quarter, revenue was lower and operating cash flow was substantially lower, causing free cash flow to decline sharply. Versus the same quarter one year earlier, revenue was slightly higher but operating cash flow was lower, and free cash flow was also lower.
Monitor whether operating cash flow recovers toward historical levels in the next quarter, as the current quarter's conversion from revenue to cash was unusually weak.