Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue, operating cash flow, and free cash flow all increased compared to both the prior quarter and the same quarter last year. The free cash flow margin improved sequentially but declined versus the prior-year period.
- Operating cash flow as a proportion of revenue was higher than the preceding quarter but lower than a year ago. After deducting capital expenditure, the resulting free cash flow margin followed a similar pattern of sequential improvement and year-over-year decline.
- Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow were all higher, and capital expenditure was lower. Versus the same quarter one year earlier, each of these metrics was also higher except for capital expenditure, which was higher as well.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$77.3B
Trailing twelve-month free cash flow.
Quarter free cash flow
$22.1B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$23.8B
Cash generated by operations before capital spending.
CapEx
$1.6B
Capital spending and related asset purchases.
FCF margin
38.8%
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 |
|---|---|---|---|---|---|
| 2025-01-26 | $39.3B | $16.6B | $1.1B | $15.6B | 39.5% |
| 2025-04-27 | $44.1B | $27.4B | $1.2B | $26.2B | 59.4% |
| 2025-07-27 | $46.7B | $15.4B | $1.9B | $13.5B | 28.8% |
| 2025-10-26 | $57.0B | $23.8B | $1.6B | $22.1B | 38.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 69.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.9% | Lower capital intensity usually supports FCF margin. |
| Net cash | $3.0B | 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 increased from the prior quarter and from the same quarter last year. The sequential rise was particularly notable, outpacing the revenue growth rate.
This drove free cash flow higher despite a modest increase in capital expenditure compared to the year-ago quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow as a proportion of revenue was higher than the preceding quarter but lower than a year ago. After deducting capital expenditure, the resulting free cash flow margin followed a similar pattern of sequential improvement and year-over-year decline.
Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow were all higher, and capital expenditure was lower. Versus the same quarter one year earlier, each of these metrics was also higher except for capital expenditure, which was higher as well.
Monitor the progression of capital expenditure relative to operating cash flow, as the year-ago quarter had a significantly lower capex level.