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 rose to new highs for the quarter, with the free-cash-flow margin expanding significantly. The sequential improvement from the prior quarter was driven by a larger increase in operating cash flow relative to revenue.
- Operating cash flow as a share of revenue improved compared to both the prior quarter and the same quarter last year, leading to a higher free-cash-flow margin. Capital expenditure was relatively stable in magnitude across periods, so the conversion gain was primarily tied to stronger operating cash flow generation.
- Compared to the immediately preceding quarter, revenue was higher and operating cash flow rose by a larger proportion, resulting in a stronger free-cash-flow margin. Versus the same quarter one year earlier, all key cash flow metrics were higher and the margin widened from roughly two-fifths to over half of revenue.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$96.7B
Trailing twelve-month free cash flow.
Quarter free cash flow
$34.9B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$36.2B
Cash generated by operations before capital spending.
CapEx
$1.3B
Capital spending and related asset purchases.
FCF margin
51.2%
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 |
|---|---|---|---|---|---|
| 2025-04-27 | $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% |
| 2026-01-25 | $68.1B | $36.2B | $1.3B | $34.9B | 51.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 81.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.9% | Lower capital intensity usually supports FCF margin. |
| Net cash | $2.1B | 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 expansion
Operating cash flow increased significantly more than revenue between the prior quarter and the current quarter, and also outgrew revenue on a year-over-year basis. This was the strongest observable driver of free-cash-flow improvement.
The higher operating cash flow relative to revenue lifted the free-cash-flow margin above half of revenue for the first time in the periods shown.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow as a share of revenue improved compared to both the prior quarter and the same quarter last year, leading to a higher free-cash-flow margin. Capital expenditure was relatively stable in magnitude across periods, so the conversion gain was primarily tied to stronger operating cash flow generation.
Compared to the immediately preceding quarter, revenue was higher and operating cash flow rose by a larger proportion, resulting in a stronger free-cash-flow margin. Versus the same quarter one year earlier, all key cash flow metrics were higher and the margin widened from roughly two-fifths to over half of revenue.
Monitor whether operating cash flow growth can sustain its pace relative to revenue in coming quarters.