Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and operating cash flow both improved compared to the same quarter last year, leading to a higher free cash flow margin. Versus the prior quarter, revenue and operating cash flow declined, resulting in a lower free cash flow margin.
- Operating cash flow as a proportion of revenue was higher than the year-ago quarter but lower than the prior quarter. Capital expenditure remained relatively stable across all three periods, so the change in free cash flow was driven primarily by operating cash flow.
- Compared to the prior quarter, revenue and operating cash flow were lower, and free cash flow margin weakened. Compared to the same quarter last year, revenue, operating cash flow, and free cash flow margin all improved.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.6B
Trailing twelve-month free cash flow.
Quarter free cash flow
$627.1M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$836.0M
Cash generated by operations before capital spending.
CapEx
$209.0M
Capital spending and related asset purchases.
FCF margin
10.4%
The share of revenue converted into free cash flow.
TTM FCF yield
3.6%
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 |
|---|---|---|---|---|---|
| 2025-08-02 | $5.5B | $668.4M | $201.7M | $466.6M | 8.4% |
| 2025-11-01 | $5.6B | $827.1M | $209.3M | $617.8M | 11.0% |
| 2026-01-31 | $6.6B | $1.1B | $200.9M | $920.8M | 13.9% |
| 2026-05-02 | $6.0B | $836.0M | $209.0M | $627.1M | 10.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 96.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.5% | Lower capital intensity usually supports FCF margin. |
| Net cash | $3.1B | 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 improvement
Operating cash flow was substantially higher than the same quarter last year, which directly lifted free cash flow and margin. This was the strongest observable driver of the quarter's cash conversion performance.
The higher operating cash flow more than offset the modest increase in capital expenditure, resulting in a stronger free cash flow position versus 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 year-ago quarter but lower than the prior quarter. Capital expenditure remained relatively stable across all three periods, so the change in free cash flow was driven primarily by operating cash flow.
Compared to the prior quarter, revenue and operating cash flow were lower, and free cash flow margin weakened. Compared to the same quarter last year, revenue, operating cash flow, and free cash flow margin all improved.
Monitor the trend in operating cash flow relative to revenue, as it declined sequentially despite a year-over-year improvement.
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 | $72.4B | Used as the denominator for FCF yield. |
| TTM FCF yield | 3.6% | TTM free cash flow divided by market capitalization. |
| EV / TTM FCF | 26.3x | A quick valuation bridge, not a full DCF. |
Peer context
Free cash flow quality is easier to read against related public companies.