Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Cash conversion weakened sequentially as operating cash flow and free cash flow declined from the prior quarter, though both improved sharply compared to the same quarter last year. The free cash flow margin narrowed from the previous quarter but expanded significantly year over year.
- Revenue decreased from the prior quarter, while operating cash flow fell more sharply, leading to a lower free cash flow margin. Compared to the same quarter last year, revenue was higher and operating cash flow increased substantially, resulting in a much higher free cash flow margin.
- Compared to the immediately preceding quarter, revenue, operating cash flow, free cash flow, and free cash flow margin were all lower. Compared to the same quarter one year earlier, all metrics were higher, with operating cash flow and free cash flow showing the largest improvements.
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
$574.7M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$628.9M
Cash generated by operations before capital spending.
CapEx
$54.2M
Capital spending and related asset purchases.
FCF margin
25.3%
The share of revenue converted into free cash flow.
TTM FCF yield
3.2%
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 |
|---|---|---|---|---|---|
| 2025-07-31 | $1.7B | $671.0M | $38.6M | $632.4M | 36.3% |
| 2025-10-31 | $2.3B | $639.7M | $34.5M | $605.2M | 26.8% |
| 2026-01-31 | $2.4B | $856.8M | $35.3M | $821.5M | 34.1% |
| 2026-04-30 | $2.3B | $628.9M | $54.2M | $574.7M | 25.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 3360.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.4% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$7.6B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Year-over-year cash flow expansion
Operating cash flow and free cash flow both increased substantially compared to the same quarter last year, driving a higher free cash flow margin despite a moderate rise in capital expenditure.
The year-over-year improvement in free cash flow margin was the strongest observable driver this quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue decreased from the prior quarter, while operating cash flow fell more sharply, leading to a lower free cash flow margin. Compared to the same quarter last year, revenue was higher and operating cash flow increased substantially, resulting in a much higher free cash flow margin.
Compared to the immediately preceding quarter, revenue, operating cash flow, free cash flow, and free cash flow margin were all lower. Compared to the same quarter one year earlier, all metrics were higher, with operating cash flow and free cash flow showing the largest improvements.
Monitor the trend in capital expenditure, which increased sequentially but remained lower than the year-ago quarter.
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 | $81.4B | Used as the denominator for FCF yield. |
| TTM FCF yield | 3.2% | TTM free cash flow divided by market capitalization. |
| EV / TTM FCF | 33.8x | A quick valuation bridge, not a full DCF. |
Peer context
Free cash flow quality is easier to read against related public companies.