Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Operating cash flow increased significantly from both the prior quarter and the same quarter last year, driving a higher free cash flow and an improved free cash flow margin. The sequential gain in free cash flow was larger than the increase in revenue.
- Revenue was higher sequentially and year over year. Operating cash flow converted at a higher free cash flow margin compared to the prior quarter, while the year-over-year margin improved after adjusting for a lower base of capital expenditure.
- Compared to the prior quarter, free cash flow was higher on stronger operating cash flow and slightly higher capital expenditure. Relative to the same quarter last year, free cash flow improved as operating cash flow grew faster than capital expenditure.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$72.1B
Trailing twelve-month free cash flow.
Quarter free cash flow
$26.2B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$27.4B
Cash generated by operations before capital spending.
CapEx
$1.2B
Capital spending and related asset purchases.
FCF margin
59.4%
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 |
|---|---|---|---|---|---|
| 2024-07-28 | $30.0B | $14.5B | $977.0M | $13.5B | 45.0% |
| 2024-10-27 | $35.1B | $17.6B | $813.0M | $16.8B | 47.9% |
| 2025-01-26 | $39.3B | $16.6B | $1.1B | $15.6B | 39.5% |
| 2025-04-27 | $44.1B | $27.4B | $1.2B | $26.2B | 59.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 139.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.8% | Lower capital intensity usually supports FCF margin. |
| Net cash | $6.8B | 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 Strength
Operating cash flow was substantially higher both sequentially and year over year, supported by higher revenue and, as stated in the filing, the timing of cash collections. This was the primary factor behind the free cash flow increase.
The stronger cash flow generation allowed free cash flow to expand at a faster pace than revenue.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was higher sequentially and year over year. Operating cash flow converted at a higher free cash flow margin compared to the prior quarter, while the year-over-year margin improved after adjusting for a lower base of capital expenditure.
Compared to the prior quarter, free cash flow was higher on stronger operating cash flow and slightly higher capital expenditure. Relative to the same quarter last year, free cash flow improved as operating cash flow grew faster than capital expenditure.
Monitor the sustainability of the operating cash flow level relative to revenue, given the filing notes a timing component in collections.