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 improved versus both the prior quarter and the same quarter last year. The free cash flow margin strengthened compared to the prior quarter but was similar to the year-ago level.
- Operating cash flow as a share of revenue increased from the prior quarter, supporting a free cash flow margin expansion. Capital expenditure rose in absolute terms but remained a small proportion of operating cash flow, allowing most operating cash to convert into free cash flow.
- Compared to the immediately preceding quarter, all four metrics—revenue, operating cash flow, capital expenditure, and free cash flow—were higher. Versus the same quarter one year earlier, revenue, operating cash flow, and free cash flow were higher, while capital expenditure was also higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$119.1B
Trailing twelve-month free cash flow.
Quarter free cash flow
$48.6B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$50.3B
Cash generated by operations before capital spending.
CapEx
$1.8B
Capital spending and related asset purchases.
FCF margin
59.5%
The share of revenue converted into free cash flow.
TTM FCF yield
2.3%
TTM FCF divided by market capitalization.
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 |
|---|---|---|---|---|---|
| 2025-07-27 | $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% |
| 2026-04-26 | $81.6B | $50.3B | $1.8B | $48.6B | 59.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 83.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.2% | Lower capital intensity usually supports FCF margin. |
| Net cash | $4.8B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Revenue Increase
Revenue rose compared to both the prior quarter and the same quarter last year. The filing context notes that cash provided by operating activities increased due to higher revenue, which was the strongest observable driver.
The increase in revenue drove higher operating cash flow, which directly supported the improvement in free cash flow.
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 increased from the prior quarter, supporting a free cash flow margin expansion. Capital expenditure rose in absolute terms but remained a small proportion of operating cash flow, allowing most operating cash to convert into free cash flow.
Compared to the immediately preceding quarter, all four metrics—revenue, operating cash flow, capital expenditure, and free cash flow—were higher. Versus the same quarter one year earlier, revenue, operating cash flow, and free cash flow were higher, while capital expenditure was also higher.
Monitor the absolute level of capital expenditure relative to prior periods, as it increased sequentially and year-over-year.
Valuation context
A cash-flow page should show how much investors are paying for the cash stream, without turning into a full DCF.
| Market capitalization | $5.1T | Used as the denominator for FCF yield. |
| TTM FCF yield | 2.3% | TTM free cash flow divided by market capitalization. |
| EV / TTM FCF | 42.8x | A quick valuation bridge, not a full DCF. |