Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was stable compared to the prior quarter, while operating cash flow and free cash flow improved substantially. Free cash flow margin recovered to a level similar to the same quarter last year.
- Operating cash flow increased relative to the prior quarter, supporting a higher free cash flow despite a slight reduction in capital expenditure. The free cash flow margin rose accordingly.
- Compared to the immediately preceding quarter, free cash flow and margin were higher. Versus the same quarter one year earlier, free cash flow and margin were roughly stable.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$5.4B
Trailing twelve-month free cash flow.
Quarter free cash flow
$2.3B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$2.7B
Cash generated by operations before capital spending.
CapEx
$444.0M
Capital spending and related asset purchases.
FCF margin
25.5%
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 |
|---|---|---|---|---|---|
| 2025-04-25 | $8.9B | $2.5B | $459.0M | $2.1B | 23.2% |
| 2025-07-25 | $8.6B | $1.1B | $504.0M | $584.0M | 6.8% |
| 2025-10-24 | $9.0B | $925.0M | $468.0M | $457.0M | 5.1% |
| 2026-01-23 | $9.0B | $2.7B | $444.0M | $2.3B | 25.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 201.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 4.9% | 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 improvement
Operating cash flow in the current quarter was higher than both the prior quarter and the year-ago quarter, driving a higher free cash flow.
This improvement was the primary factor behind the recovery in free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow increased relative to the prior quarter, supporting a higher free cash flow despite a slight reduction in capital expenditure. The free cash flow margin rose accordingly.
Compared to the immediately preceding quarter, free cash flow and margin were higher. Versus the same quarter one year earlier, free cash flow and margin were roughly stable.
Monitor the sustainability of operating cash flow, given the current quarter's level was significantly higher than the prior quarter.